Markets are set for another Monday Melt-up as another Sunday evening comes to an end with a new Greek bailout plan. Bloomberg is reporting that the latest and greatest bailout will amount to a staggering $645B:
“European Union finance ministers moved toward agreement on an unprecedented loan package worth at least $645 billion to prevent Greece’s fiscal woes from triggering a broader sovereign-debt crisis and shattering confidence in the euro.”
I don’t have much of an opinion on this as of now, but the market certainly appears to like the news as S&P futures trade higher by 1.8% and the Euro rockets higher by 1.2%. Of course, we’ve seen the same thing in response to each of the last few bailouts and the markets were quickly rattled in the subsequent days. This plan looks like it could have some near-term positives though it ultimately kicks the can down the road. We’ll have more details as they’re released.
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.