Creditors

• Tsipras backs down on many Greece bailout demands (FT)
• Creditors skeptical of Tsipras' offer (Reuters)
• Greek Pension Rationing Begins; Poll Shows Tsipras Backed (BBG)
• Greek referendum poll shows lead for 'No' vote, but narrowing (Reuters)
• Greek Bank Controls Heap More Pain on Crisis-Weary Citizens (BBG)
• Greek Crisis Ripples Across European Companies as Markets Swing (BBG)
• China Stocks Fall: Shanghai Composite Index Drops 5.2% (BBG)
• China June factory, services surveys fuel hopes economy leveling out (Reuters)
• Some Chinese Are Taking 22% Margin Loans to Finance Stock Purchases (BBG)

So much going on that by the time an article is prepared, everything has changed and it has to be scarpped. But, in any event, here is an attempt to summarize all that has happened in another turbulent overnight session.

It's deja vu all over again.

Just hours after Greece became the first developed country to default to the IMF, as a result being expelled from its existing bailout program, a little before 5am CET news hit that Greek PM Tsipras was willing to concede to virtually all creditor demands, with a few exceptions. As the FT first reported, "Greek prime minister Alexis Tsipras will accept most of the bailout creditors’ conditions offered last weekend, but is still insisting on a handful of changes that could thwart a deal according to a letter he sent late on Tuesday night."

With capital controls already imposed on Greece, some have wondered if this is as bad as it gets. Unfortunately, as the Cyprus "template" has already shown us, for Greece the nightmare on Eurozone street is just beginning.

What has really been going on in Europe over the past 5 years, if the debt load kept creeping higher, and yet little money was actually making its way to the broader population? The answer is simple: abuse of taxpayer funding, also known as fraud and corruption. As Italy's TheLocal reports, the EU anti-fraud office, Italy currently has 61 open investigations into fraud involving EU funds. This means Italy has the second highest number of investigations in the EU, ranking just below Greece's neighbor to the north, Bulgaria.

In the latest example that there are generous, perhaps even noble people, still left, Crowdfunding site Indiegogo has released a crowd sourced "Greek Bailout Fund" which in just 1 day has already managed to raise around €100,000 from over 6,300 contributors. Noble, generous... and quite idiotic, for one simple reason - the math is horribly wrong.

• EU in last-ditch bid to Greece, urges "yes" vote to bailout (Reuters)
• In? Out? In between? A Greek legal riddle for EU (Reuters)
• Tsipras Says EU Won’t Eject Greece as Cost ‘Immense’ (BBG)
• Empty Greek ATMs Force Tourists to Stiff Santorini Cabbies (BBG)
• Anti-austerity protests in Greece as bank shutdown bites (Reuters)
• Puerto Rico governor calls for bankruptcy; adviser says island 'insolvent' (Reuters)
• Puerto Rico Urges Concessions From Creditors (WSJ)
• Hilsenrath - For Fed to Delay Rate Hikes, Global Tumult Would Need to Infect U.S. (WSJ)

GREEK FINANCE MINISTER SAYS GREECE WILL NOT PAY IMF ON TUESDAY.

On Friday morning, at around midnight PDT, the price of silver had a mini crash, dropping more than 10 cents in one second. This is our forensic analysis.

Earlier today, as the exchange between Greece and its creditors got increasingly belligerent, Estonian Prime Minister Taavi said that "Greece’s debt would still remain outstanding and creditors would expect this money back." So did this latest antagonism change the Greek mind? According to a flash headline by the WSJ released moments ago, not all. In fact, Greece just made it official that it would default to the IMF in just over 24 hours: "Greece won't pay IMF tranche due Tuesday, government official says"

Having concluded last night that Puerto Rico debt is "unpayable," and that his government could not continue to borrow money to address budget deficits while asking its residents, already struggling with high rates of poverty and crime, to shoulder most of the burden through tax increases and pension cuts, Padilla confirmed tonight that: PUERTO RICO TO SEEK "NEGOTIATED MORATORIUM", 'YEARS' OF POSTPONEMENT IN DEBT PAYMENTS. Likening his state's situation to that of Detroit and New York City (though not Greece), Padilla concluded, the economic situation is "extremely difficult," which is odd because just a few years ago when they issued that bond - everything was awesome?

Having told the citizens of Greece that the European leaders will not kick them out of Europe because "the cost of throwing them out is too high, enormous," it appears Greek PM Tspiras has another plan to ensure - no matter what the outcome of the forthcoming referendum - that there is no actual Grexit. As The Telegraph reports, Greece has threatened to seek a court injunction against the EU institutions, saying "we are taking advice and will certainly consider an injunction at the European Court of Justice. The EU treaties make no provision for euro exit and we refuse to accept it. Our membership is not negotiable."

It seems Goldman Sachs' conspiracy theory was right all along...

ECB'S COEURE SAYS ECB IS EVEN READY TO USE NEW INSTRUMENTS, WITHIN ITS MANDATE
GREECE COULD EXIT EURO, COEURE SAYS IN LES ECHOS INTERVIEW

This is exactly what The ECB wanted all along (and their leaders overlords) - all they needed was an 'excuse'. Or, in the parlance of Rahm Emanuel's times, "Let no Greek default crisis go to QE waste."

With the ATMs running dry and lines forming at gas stations and grocery stores, Greeks are understandably restless and have once again gathered en masse in Syntagma Square.

Referendum is a CYA by Tsipras & Syriza, but a deal is by no means the end of anything...