Greece

Over the weekend there was so much news to cover and it unfolded faster then I could open new browsers, but this article gives a pretty good summation of the Greek situation.

The Greek will run out of money, whether it's in a year or a month depends on a lot of situations, most pressing is the current IMF tranche' due and whether or not it will be paid out.

The Greek majority ruling party faces unprecedented pressure from other parties and the public (just watch the protests in Athens since Wednesday and spreading through other PIIGS like Portugal, Spain and Italy), voters have had enough with austerity in Greece and it makes it very difficult for the government to press forward on the difficult terms it must meet to receive continued support.

It's now coming down to a scenario in which The IMF, ECB and EU Commission or the "troika" are demanding greater control over Greece's financial matters from selling state assets to collecting taxes, making Greece in effect, a puppet state or a EU colony, certainly having their ability to collect taxes taken away from them constitutes a breach of the status as a sovereign nation.

However, the Greeks aren't as boxed in as the Troika demands may seem. The Greeks could simply choose t default, introduce a new currency and go from there, which would send shock waves and another recession through Europe and perhaps beyond, but it's looking more and more like this is a viable and likely option. The rumor of it was floated several weeks ago only to be swiftly denied by all parties, but here we are talking about it again.

I think this situation will resolve sooner then later. For now the market is playing the setup that was in place several weeks ago, when the Greek situation is discounted in the next cycle, watch out below.