Over the weekend, the Greek cabinet and parliament approved the bailout deal that paves the way for the second round of funds to the struggling country. Instead of fireworks celebrating the deal, the Greek citizenry turned towards Molotov cocktails to voice their displeasure with the austerity cuts. Maybe one day the EU and IMF will figure out you cannot decimate your populace to growth.
The Dow futures are responding positively to the Greek news, up 85 points to 12,852. Nasdaq 100 futures are following suit, up 17.50 points to 2,556. The S&P 500 is rounding out the pre-market gains, adding 9.50 points to 1,350.
If the Greek deal sounds bit like deja vu, it is cause you have seen this movie before. The Greek government passes a bill that promises the moon, citizens go into the street to riot, and then the Greek government misses nearly all their economic targets laid out in the deal. Regardless, the market is set to continue its rally as the deal will work to calm the markets for a short period. [Read more...]
