DAX futures have jumped 50 points (back above 11,000), and Dow Futures are up 60 points off the day's lows as yet another Greek rumor headline hits the wires. While the market reads the WSJ headlines on the extension of third Greek bailout to March 2016 as positive, Tsipras has already, according to the WSJ, [7]rebuffed it as "unacceptable" because in exchange for the offered extension, Juncker and Dijsselbloem require implementing policy overhauls as well as pension cuts and tax increases, both of which just happen to be the Greek 'red lines.'
[8]
The apparent good news from the The Wall Street Journal: [7]
Greece’s international creditors have suggested extending the country’s bailout program until the end of March 2016...
And the bad news:
... but disagreements over the conditions attached to the continued support and what would happen afterward risk undermining that plan, three people familiar with the negotiations said Monday.
In exchange for bailout extension, Juncker and Diesel required "pension cuts and tax increases.
And the even worse news:
Another factor holding up a deal is what would happen after March. One of the people said that Greece insists it doesn’t want a third bailout program—which many creditor representatives believe is necessary—and doesn’t want to follow spending conditions laid out by its creditors beyond March.
So who gets to tell the Greeks the good news they can continue being a colony of Germany only if they collateralize their left kidney?
In short: another attempt by Europe to sweeten a deal which was already a non-starter for Greece, which repeatedly said over the weekend the only proposal in play is the one it itself drafted, and not that of the Troika.
For now, whoever, the upward momentum ignited algos are trying to grasp the nuance.
