Pigs is Pigs

Money is flowing out of Bonds and into Stocks this morning after news that the latest $59,000,000,000 Greek bailout proposals mays appease creditors and keep the country in the European Union.  Greece will most assuredly need to usher in tax increases and spending cuts to make payments this time around.

China’s whipsaw stock market is also making headlines again today as it closed this time on the upside.  Regarding the economies of both countries, the question is whether there is real sustainable growth based on sound fundamentals or just fabricated headlines to appease big brother.  No matter how you doll it up, a pig is still a pig I say.  Disclaimer: I am in no way asserting that these countries, their citizens, or anyone descending from–or with ties to–these nations are anything less than the best of human kind.  My assertion is simply that a healthy economy requires more than lipstick and rose-colored glasses.

Speaking of pigs, I had a delicious Brown Sugar Bacon and Pit Smoked Ham Sandwich on a King’s Hawaiian Bun at a reputable dining establishment down the street from my office (okay you got me, it was Arby’s) this week.  What made the experience even more sweet is that when I got to the drive thru window to pick up my food, the gal handed me my bag and informed me that the car ahead had picked up the tab.  It was the most gratifying lunch that I had all week and has caused me to look for more opportunities to be kinder than I need to be.

Trouble in Paradise

I welcome your witty caption about these pigs swimming in a the Mediterranean Sea off the coast of Greece, where their banks and stock market have just shut down for a week.  Grecians can’t pull more than 60 Euro out of ATMs per day, the supermarkets are running out of food, and the gas stations are running out of fuel.

Jumping on the “trouble in paradise” band wagon, Puerto Pico’s governor announced this morning that his Commonwealth cannot repay their $72 Billion in debt.

For the time being, the uncertainty has caused the DOW to drop 245 while the equity markets bleed into the bond markets.  Our mortgage bonds are taking their share of the proceeds, driving prices up 59bps this morning.

Pending Home Sales rose 0.9% last month, below the 1.4% increase expected.  At the same time, my favorite-named financial services company, Black Knight, reported that home prices rose 1% last month and are up 5% from 12 months ago.