6:40AM – Europe has reached a deal. Greek bondholders will take a 50% haircut. The EFSF will be levered 4-5x, bringing its value to $1.4 trillion. We better hope that Italy doesn’t start to crack because $1.4 trillion isn’t going to get much done there. If anything, this deal buys the EU a bit of time until the next leg of the crisis hits. Risk is back on via the mother of all short squeezes, Germany is up over 4%, France is up 4.7%. S&P futures are higher by nearly 2%. Best of luck out there (especially if you’re short), and on with the links…
- Details on EU ‘rescue’ package. (Bloomberg, Zero Hedge, WSJ, PragCap)
- U.S. financial system has trust issues. (The Big Picture)
- RIM hit with lawsuits over Blackberry outages. (Reuters)
- Former Goldman director’s fall from grace. (Dealbook)
- Blogger compiles his ‘dream-team’ portfolio. (Aleph Blog)
- Regulators and banks clashing over capital ratios. (WSJ)
