Friday, June 24, 2011

Greek effect

With Japan market higher on the open this morning after Europe down (a lot) and US down (a bit) overnight, I was and am most bemused. To the interwebs Batman.

"The US market rallied on a story that came out this morning. The supposed deal that reuters reported at around 3pm NY and caused the market spurt higher was actually out before lunch with the gist being the Greek government will lower the income threshold of those being taxed, amongst other spending cuts." Greek Noise | The Big Picture

"Somehow the fact that Greece has "reached" a deal on its austerity plan is supposed to be good for 100 pips on the EURUSD even though this is not news, and has been priced in for a long time. Furthermore it does absolutely nothing to dampen the fear and loathing that this plan will be met by the broader Greek population. But with markets that have absolutely no liquidity and monkeys controlling the buy and sell algos, one can only sit back and laugh." Market surges on non-news | Zero Hedge

"Mr. Papandreou’s first task is to persuade his governing Socialist Party to pass a bill that would save or raise about $40 billion by 2015, equivalent to 12 percent of Greece’s gross domestic product, through wage cuts and tax increases, at a time when the economy is shrinking. To put that in perspective, spending cuts and tax increases of a similar scale in the United States would amount to $1.75 trillion, considerably more sweeping than even the most far-reaching proposals for reducing the American federal budget deficit. And Greece has promised to generate another $72 billion by selling off prime state assets, which many Greeks consider a fire sale of national patrimony." Greece fact of the Day - Marginal Revolution

So, the US followed Europe down, but then rallied back a bit after the Greek "agreement". Oh, and the announcement that the US will release oil from the Strategic Reserve. Because that is a good idea.

As for the whole Obama Afghanistan speech. Don't get me started. The following from the Borowitz Report was brilliant.

"WASHINGTON (The Borowitz Report) Announcing a drawdown of American troops, President Barack Obama tonight maintained that the United States was not deserting Afghanistan, promising the Afghan people, “We will continue to follow you on Twitter.”

Mr. Obama indicated that the United States’ relationship with Afghanistan would soon transition from a military one to a social networking one, with the United States promising to “Like” Afghanistan’s Facebook page and share contact information on LinkedIn.

In summing up the United States’ ten-year military mission in Afghanistan, Mr. Obama said, “We have done everything we set out to do in Afghanistan, even though we actually did it in Pakistan.”

Mr. Obama detailed the United States’ exit strategy, saying that troops would soon be leaving Afghanistan “by way of Libya.”

He said that with troops coming or going to and/or from Afghanistan, Iraq and Libya, “by 2012 the United States will be fighting only two wars – two and a half, tops.”

The President’s speech about Afghanistan ended on this stirring note: “In conclusion, my fellow Americans, I killed Osama bin Laden.  Fuckin’ A.”

In a poll taken after the President’s speech, a majority of Americans agreed with this statement: “Afghanistan is a little like the TV show LOST: it’s ending, but I’m not sure I know what it all meant.”"

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