Decision time tomorrow on Greek bailout plan; EuroZone markets optimistic that the weekend will bring a deal

Greece has made its pitch and now it’s up to the other members of the EuroZone to either strike a deal tomorrow or have EuroZone political leaders start planning for a Greek exit from the euro on at Sunday summit. If there’s no deal or likelihood of a deal by Monday, the European Central Bank has intimated that it would not be able to extend more loans to Greece’s banks.

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Today’s developments on our two financial crises–Greece and China

Overnight the Shanghai market gained 5.76%. The Shenzhen market moved up 3.76%. The ChiNext market on the Shenzhen exchange climbed 3.03%. That’s being touted as a “recovery.” Greece put a detailed, credible negotiating proposal on the table tonight AHEAD of the midnight deadline. Newspaper reports from Athens say the proposal includes 13 billion euros of new austerity measures in exchange for 50 billion in new bailout money.

Has China’s bear market delayed a Federal Reserve interest rate increase until 2016?

If the Fed was thinking on June 16-17 that it might hold off on a rate increase and leave the Fed funds rate at 0%, where it’s been since 2008, because of worries about Greece, I think it’s safe to conclude that, with China looking now at what is best termed a stock market in free fall, a September interest rate increase is just about off the table.