That is a big problem. To get an MOU, the European Union/European Central Bank will have to get a look at Spain's books. I'll bet Spain does not want them to come in and let them look at its books. Who knows what skeletons are in the closets?
They looked at the Greek books ... guess what they found? The losses were much bigger than everyone expected, with deficits much bigger than its leaders had reported. For years. (Read More: EU Says Greeks Should Work Six-Day Week: Report.)
Will the same be found in Spain? I bet it will. The Greeks aren't the only ones who know how to cook books. (Read More: Spaniards Pull Out Their Cash and Get Out of Spain.)
That is not Mario Draghi's problem, however. Draghi's problem is to lay out a program that is big, bold, and unlimited. Will anyone actually agree to its terms? Who knows? But that is not his worry right now.
Regardless: We are not far from the point where the markets will know where the ECB and the EU stand regarding the bond-buying program. We will know quickly if the market thinks this is enough.
1) Earlier today, Germany had a failed 10-year bond auction, where it tried to sell 5 billion euros ($6.3 billion), but only auctioned off 3.6 billion euros ($4.5 billion). This is more normal than you think, but it plays into what the ECB wants. It's really a good sign: Investors are expecting the opportunity to get higher yields elsewhere. German Bunds are a thermostat of demand for bonds. To the extent that demand for these low-yield instruments are waning, it means there is less anxiety in the markets.
2) Weaker global demand and higher jet fuel prices weigh on FedEx. FedEx opens at a three-month low, after the economic bellwether slashed its first-quarter earnings outlook. FedEx now estimates first-quarter earnings per share of between $1.37 and $1.43, blaming the weak global economy for constraining its express business. The Street expects first-quarter earnings per share from FedEx of $1.56; it previously forecast $1.45 to $1.60 per share. (Read More: UPS Profit, Revenue Miss Estimates; Outlook Cut.)
Weakness in China is having an impact on volumes intra-Asia.
Unlike most companies, FedEx quarter ends in August, so this is the most up-to-date information we have. There are several other companies that have quarters that end in August that should be watched, including Oracle, Adobe Systems, Jefferies Group, and Discover Financial Services.