Greece is a Sideshow. U.S. is the Main Event Ep.89

Published: June 23, 2015, 11:48 p.m.

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\\n\\t* It looks like there is going to be some kind of deal to avoid the "Grexit"
\\n\\t* Greek\'s exit would be great for Europe, but it would not be politically attractive for either side
\\n\\t* As long as Greece stays in the Eurozone, the Greek government can continue to blame Germany or Brussels for their problems
\\n\\t* So-called austerity will continue without any haircut to the debt
\\n\\t* The same is true for cuts to government spending
\\n\\t* The Greek government may increase taxes and/or adjust the retirement age for pension, but no government spending cuts are on the table
\\n\\t* Tax increases will provide more incentive for tax evasion or avoidance by leaving the country
\\n\\t* All talks are re-arranging deck chairs on the Titanic - extend and pretend
\\n\\t* The markets are higher - the euro down big
\\n\\t* The market is anticipating more cheap money, which would be threatened by a Grexit
\\n\\t* In an ideal world, if Greece were to leave the Eurozone and set themselves up as a bastion of free market capitalism, then they could come back strong
\\n\\t* Given the electorate, this move is unlikely
\\n\\t* Socialism only works in Greece as long as they have another country\'s money
\\n\\t* The sell-off in gold based on the Fed\'s dovish statements last week
\\n\\t* The Fed will only raise interest rates nominally in order to keep the market from balance sheet expansion stimulus into its calculations
\\n\\t* Good news from housing numbers - a surge in the Northeast
\\n\\t* Mortgage rates have been rising, although still low. Some buyers are worried about higher rates
\\n\\t* Higher rates, however would price buyers out of the market
\\n\\t* Monday Chicago Fed National Activity Index came in at -.17, continuing a downtrend consistent with a recession
\\n\\t* May Durable Goods down 1.8% three times lower than expectations
\\n\\t* X transportation met recently reduced expectations
\\n\\t* Durable goods has missed for 5 out of the last 7 moths
\\n\\t* Chicago PMI Manufacturing weaker than expected decrease to 53.4 - now at the lowest level since October 2013
\\n\\t* Manufacturing and production data sis weak - housing numbers are getting a boost from interest rate expectations
\\n\\t* Home ownership rate continues to fall
\\n\\t* Rents are rising
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