The Feud

Apparently what sent futures lower overnight was the reminder that the EU is fundamentally broken, can't find ideas or the money to finance those ideas and more than anything, comes off as one hand not knowing what the other is doing, this has haunted all of their grand ideas.

At the conclusion of the Finance Minister's meeting during a press conference, the EU Finance Ministry head, Jean-Claude Juncker said that Greece would have their 120% debt to GDP target extended to 2022 and somehow the bond payment due on Thursday will be financed so Greece won't default.

The disagreement came when the IMF's Christine LaGarde said they are not moving the timetable for 120% debt to GDP, it will remain at 2020, then Juncker said he was not joking, it would be moved, to which LaGarde rolled her eyes and shook her head and said, "We clearly have different views".

It turns out the market didn't like that reminder of what happens when the EU tries to fix itself, the interesting news is that somehow, even though the next Troika tranche of aid was not approved, Greece will meet its $5bn bond payment due Thursday. That should be interesting, but Juncker said it's so. I believe Juncker also said something like, When things are really serious, sometimes you have to lie".