Hi Jim,

The news just broke a few hours ago that Greece got its act together enough to keep the markets propped up for a while longer.

It would be nice if it lasts for more than 24 hours before the next bombshell.

Best regards,
CIGA Black Swan

GLOBAL MARKETS-Euro steady, S&P futures up on Greece coalition
By Chikako Mogi
Sun Nov 6, 2011 6:31pm EST

TOKYO (Reuters) – The euro steadied and stock futures rose in early Asian trade on Monday after Greek politicians agreed to form a coalition government to approve a euro zone bailout, easing fears that the debt-ridden country faced an imminent default.

The euro was little changed against the dollar and steadied above $1.38 after Greek Prime Minister George Papandreou and opposition leader Antonis Samaras agreed on a new coalition government to approve the bailout plan before elections.

Papandreou and Samaras had been scrambling to reach a deal before finance ministers of euro countries meet in Brussels on Monday, to show that Greece is serious about taking steps needed to stave off bankruptcy.

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Greece Will Form National Unity Government to Secure EU Emergency Payment
By Marcus Bensasson, Maria Petrakis and Natalie Weeks
Nov 6, 2011 5:41 PM ET

Greek Prime Minister George Papandreou agreed to step down to allow the creation of a national unity government that will secure international financing and avert a collapse of the country’s economy.

Papandreou met with Antonis Samaras, leader of the main opposition party, and agreed to form a government intended to lead Greece “to elections immediately after the implementation of European Council decisions on October 26,” according to an e-mailed statement yesterday from the office of President Karolos Papoulias in Athens. Papandreou already stated he won’t lead the new government, the statement said.

“A lot is already being asked of the yet-to-be-formed coalition and markets could be wary of any splits that appear, especially over the tougher decisions yet to be taken,” Thomas Costerg, an economist at Standard Chartered Bank, said in comments made before yesterday’s announcement. “Greece is still not out of the woods.”

Both sides will meet again today to decide who will be the head of the new government with a separate meeting to discuss the time frame and the government’s mandate, the statement said. Papoulias will also host talks with all political party leaders today as well.

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Morgan Stanley cuts Europe equities to underweight
CIGA Eric

Distribution in the Euro suggests that the market has been downgrading Europe since 2008

Euro ETF (FXE)
^[3]

Headline: Morgan Stanley cuts Europe equities to underweight

MADRID (MarketWatch) — Morgan Stanley on Monday downgraded European equities to underweight from neutral, saying October’s bounce will likely prove short-lived. The firm cited four reasons for the downgrade, including a still-insufficient policy response to the Europe crisis and deteriorating economic growth. Among the others, the firm said corporate profits are coming under increasing pressure from deteriorating margins and market-timing indicators are no longer in "buy" territory. They’re further underweighting financials and adding to defensives such as pharmaceuticals and consumer staples. "We believe investors should look to use any residual strength in stocks and sectors as an opportunity to construct an even safer and more secure portfolio — at this time the prime goal of investors should be wealth preservation rather than wealth generation," the analysts wrote.

Source: finance.yahoo.com ^[4]

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