Courtesy of Mish.
This morning, Bloomberg reported a Deal was in the works, later denied by Germany. Stocks jumped on the news, but cash withdrawals and capital flight continues as Greeks pull cash to buy cars or to put it under the mattress.
Staggered Deal Offer From Germany?
Starting from the top, Bloomberg reports Germany to Consider Offering Tsipras Staggered Deal on Aid.
Chancellor Angela Merkel’s government may be satisfied with Greece committing to at least one economic reform sought by creditors to open the door to bailout funds, according to two people familiar with Germany’s position.
While the Germans still insist on a package of steps that includes higher taxes, state asset sales and less generous retirement benefits, they may settle for a clear commitment by the Greek government to a measure up front to unlock aid, said the people, who asked not to be identified discussing the government’s negotiating stance.
“Where there’s a will, there’s a way,” Merkel told reporters as she arrived in Brussels. “The goal is to keep Greece in the euro area.”
Wall Street Jumps on Rumor Deal
It appears Merkel will be the one to bend if anyone does.
Reuters reports Wall St. Jumps on Report Germany May Consider Greece Aid.
Wall Street surged in late morning trading on Wednesday after a Bloomberg report that Germany may be satisfied with Greece committing to at least one economic reform in return for aid.
All three major indexes rose more than 1 percent on the same day for the first time in a month.
Deal Talk “Pure Invention”
Is there a deal offer or just a rumor? Reuters reports Merkel, Hollande to Tell Greek PM to Talk to Creditors.
Germany will only accept a cash-for-reform deal between Greece and its international creditors that has the approval of all three lending instutions, a government spokesman said in response to reports that Berlin was considering easier terms.
Asked about a Bloomberg report that said Chancellor Angela Merkel’s government may be satisfied with Greece committing to at least on major economic reform sought by the creditors, the spokesman told Reuters: “Germany will only accept a proposal of the three institutions. All else is a pure invention.”…
