Wednesday July 22 Housing and Economic stories

TOP STORIES:

German Taboo-Busting Greek Exit Idea Sows Division With France - (www.bloomberg.com) Germany’s idea of suspending Greece from the euro drew a rebuke from French President Francois Hollande, highlighting divisions between the two most influential nations in the currency union. The notion, first reported by Frankfurter Allgemeine Sonntagszeitung Saturday as finance ministers were haggling in Brussels, marks an acknowledgment that euro membership is neither permanent nor irrevocable, as its creators intended. A one-page position paper drafted by the German Finance Ministry deemed Greece’s efforts toward a new bailout insufficient and presented two scenarios: either Greece quickly present a more robust plan and agree to more stringent oversight, or euro-area nations would provide aid during a five-year suspension outside the single currency.

Angry at Demands, Greeks Rail at German 'Humiliation' – (www.reuters.com)  Greeks accused Germany of trying to humiliate them by making tougher demands for a new bailout deal, as the country's fate in the euro zone hung in the balance ahead of a meeting of European ministers in Brussels on Sunday. Elected on a promise to rid Greece of austerity, Prime Minister Alexis Tsipras was forced this week to make last minute concessions to the international creditors for painful austerity measures in the hopes of securing a cash-for-reforms deal. But the damage done by months of fractious talks and Tsipras's decision to hold a snap referendum on the bailout terms on July 5 means securing a deal will be tough. Lawmakers including in Germany, Greece's biggest creditor, are skeptical over whether Athens will carry out reforms that the Greek people overwhelmingly rejected in the referendum.

China’s Incendiary Market Is Fanned by Borrowers and Manipulation - (www.nytimes.com)  At the height of the frenzy for Chinese stocks, just about every company was a winner. An online gaming start-up was valued at $7 billion. Shares in a fireworks company that had moved into finance shot up 300 percent. A struggling property developer was transformed into a stock market darling, just by changing its name to suggest it was an Internet company. Then there was the case of Beijing Baofeng Technology, an online video company whose stock price soared 4,200 percent in the three months after it went public early this year. The company’s shares climbed by 10 percent — the maximum amount allowable under exchange rules — nearly every day for more than 30 days. Viewed through the lens of the recent market tumult, experts said China’s stock bonanza bordered on the insane. Before things fell apart a few weeks ago, China’s remarkable bull run was reminiscent of the Internet bubble that gripped the Nasdaq stock market between 1998 and 2000, when companies like Pets.com and Webvan that had no profit quickly became more valuable than some industrial stalwarts. At the time, everyone talked about how technologies and industries would transform society, justifying eye-popping valuations. They were right about the future, just not necessarily about specific companies and the high stock prices.

Stock Market Plunge in China Dents Communist Party’s Stature - (www.nytimes.com)  Yu Xilin was obsessing on China’s plummeting stock market when he tumbled off his bicycle. But the accident did not sway his focus. While recovering in the hospital on Thursday from surgery for a broken ankle and shoulder, he was using his smartphone to track his shares. “The government departments that are supposed to be monitoring the stock market aren’t doing their job properly,” Mr. Yu, 55, the director of a provincial cultural exchange office, said by phone from his hospital bed in the northwestern city of Xi’an. “This will affect the image of our leaders. Investors are very upset.” Even if China’s stock markets end their dizzying falls — and analysts say there is still room to tumble even after a respite on Thursday — the sense of supreme control that once cloaked the Communist Party leadership may take longer to recover.

Greece Needs $25 Billion to Get Through August, Scicluna Says - (www.bloomberg.com) Greece needs an infusion of 22 billion euros ($25 billion) to pay its bills through the end of August, Maltese Finance Minister Edward Scicluna said. This figure includes 7 billion euros by July 20, when Greece owes about 3.5 billion euros to the European Central Bank, Scicluna said in an interview. It includes 10 billion euros for banks and 5 billion euros for other needs. He spoke on the sidelines of Sunday’s euro-area summit after finance chiefs concluded their session. “The Greeks have finally understood that unless they get an injection of cash they are faced with a doomsday scenario,” Scicluna said.

OTHER STORIES:

Eurogroup Offers Leaders Choice of Words on Grexit: Document - (www.nytimes.com)
Tsipras Given 72 Hours to Win EU’s Trust by Passing Bailout Laws - (www.bloomberg.com)
Greece Deal on Bailout Unlikely Today, Euro Ministers Say - (www.bloomberg.com)
Germany reportedly preparing for Greece exit from eurozone - (www.foxnews.com)
"Kindergarten" as weary euro ministers divide over Greece - (www.reuters.com)

Highlights-Euro zone leaders summit on Greece - (www.reuters.com)
Greece needs to do more to start third bailout talks: Eurogroup draft
Schaeuble Greek Exit Idea Gets Qualified Nod From Merkel Deputy - (www.bloomberg.com)
France and Germany split over bid to break Greece deadlock - (www.ft.com)
Greek Deal Prospects Slim as Crisis Talks Continue - (www.online.wsj.com)