Comments from the Merkel/Papandreou/Sarkozy phone call indicate Greece will likely get its next 8 billion euro loan.
Stocks have moved to their highs for the day, as the Greek government has said, "All agreed Greece will remain in the eurozone" and "Greece PM vows to take all necessary measures on budget commitments."
Traders immediately noted that while pledges of support to remain in the European Union were made, there was nothing said about whether Greece would restructure its debt.
There is no one — NO ONE — on any trading floor or trading desk I have spoken with who does not believe that a very serious restructuring is coming. The question is when.
One of the most passed around comments this morning among traders came from Kyle Bass of Hayman, who was attending the Delivering Alpha conference and said on our air: "Greece has to default....so what's the write down gonna be? Is it gonna be the private sector participation number of 21 percent or more like 80 percent?"
Elsewhere, the lower house of the Italian parliament has approved the austerity plan to balance the budget by 2013.
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