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Tsipras channels Cher

| Posted by: Paul Donovan | Tags: Paul Donovan

  • "If I could turn back time; if I could find a way; I'd take back the words that hurt you; and you'd stay". In other words there is a Greek attempt to turn back time to the 26 June creditors' proposal to Greece and implement those reforms. Debt restructuring is an implicit not explicit part of the deal.
  • The solution for Greece is nominal growth higher than its nominal interest rate. The problem for Greece is trust (of the creditors and its own population). The question for Greece is who governs - government, parliament or the mass of bank depositors?
  • While we are waiting for the weekend we have Fed Chair Yellen speaking. She is due to speak to Congress next week, but perhaps should not lose the opportunity to signal to markets that interest rates will indeed be rising this year. Rosengren of the Fed also speaks.
  • Michigan consumer sentiment is due from the US. Does the US consumer care about Greece? Or about the fact that Chinese equities are up less than 20% year to date? Probably not. Employment, wages and the cost of filling the family fleet of SUVs with fuel are what matter.