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

* It looks like there is going to be some kind of deal to avoid the "Grexit"

* Greek's exit would be great for Europe, but it would not be politically attractive for either side

* As long as Greece stays in the Eurozone, the Greek government can continue to blame Germany or Brussels for their problems

* So-called austerity will continue without any haircut to the debt

* The same is true for cuts to government spending

* The Greek government may increase taxes and/or adjust the retirement age for pension, but no government spending cuts are on the table

* Tax increases will provide more incentive for tax evasion or avoidance by leaving the country

* All talks are re-arranging deck chairs on the Titanic - extend and pretend

* The markets are higher - the euro down big

* The market is anticipating more cheap money, which would be threatened by a Grexit

* 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

* Given the electorate, this move is unlikely

* Socialism only works in Greece as long as they have another country's money

* The sell-off in gold based on the Fed's dovish statements last week

* The Fed will only raise interest rates nominally in order to keep the market from balance sheet expansion stimulus into its calculations

* Good news from housing numbers - a surge in the Northeast

* Mortgage rates have been rising, although still low. Some buyers are worried about higher rates

* Higher rates, however would price buyers out of the market

* Monday Chicago Fed National Activity Index came in at -.17, continuing a downtrend consistent with a recession

* May Durable Goods down 1.8% three times lower than expectations

* X transportation met recently reduced expectations

* Durable goods has missed for 5 out of the last 7 moths

* Chicago PMI Manufacturing weaker than expected decrease to 53.4 - now at the lowest level since October 2013

* Manufacturing and production data sis weak - housing numbers are getting a boost from interest rate expectations

* Home ownership rate continues to fall

* Rents are rising


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