More Sewing Circle News

On a day and a week that is pretty light on macro economic data, as I warned Monday, Greece would dominate the market. Around 2:15 some volatility jumped in the market, at first I thought it may be the SPX crossing to unchanged, but I suspect it has more to do with a leaked Trokia/Greek pledge draft document. Th market's reaction is ridiculous as usual as it is moving on mere news and no event as Germany still has to vote on all of this, the Private creditor issue hasn't been resolved and the reforms the Troika wants will face stiff resistance in the Greek ruling coalition. In any case, Wall Street needs the market to move, which way doesn't matter, but to make any money, they need movement.

In any case, here's what was leaked via Bloomberg...

Greece Draft Cuts Minimum Wage 20%

Greece will pledge permanent spending cuts, including lower pension payments and a 20 percent reduction in the minimum wage, as the economy contracts this year at a faster pace than originally estimated, according to the draft of a new financing deal with the European Union and International Monetary Fund.

Additionally:

• TROIKA DRAFT GREEK ACCORD SAYS 2012 GDP TO SHRINK AS MUCH AS 5% - 
• GREECE TO CUT MEDICINE SPENDING TO 1.5% OF GDP FROM 1.9% OF GDP 
• GREECE PLEDGES TO MERGE ALL AUXILIARY PENSION FUNDS 
• GREECE TO PLEDGE 20% CUT IN MINIMUM WAGE IN TROIKA DRAFT 
• TROIKA DRAFT GREEK ACCORD RENEWS PLEDGE TO CUT 150,000 EMPLOYEE 
• TROIKA DRAFT GREEK ACCORD SEES RETURN TO GROWTH IN 2013 

So we probably have about 24 hours max before a denial of everything mentioned above.