Greeks freak, but pay the vig

So the Greek Parliament has agreed to put the country on an unsustainable economic course that will make it a vassal state of the euro zone.

But the Trioka will accept the vote to pile on at least 7 billion euro to immediately pay the banks money owed. Wonderful news for all Greeks.

This should take Greece out of crisis mode until September at the latest. We’ll see.

Now we can turn our attention to the next two global flash points: China and the US.

China’s slowing growth — even “official government numbers” — has large investors dumping their ADR shares out of the country.

Despite the central government plowing funds into market to prop up share prices and barring large institutions from selling or shorting for the next 3 months to 6 months.

In the US we will get the first read on Q2 GDP in two weeks. This number looks to be borderline zero as retail sales are still bottoming out and exports are hurt by strong dollar.

As Wall Street lowers its forecasts each week — consensus is not near zero, because of the cheerleading factor of bolstering the economy — it is in the 2.5% to 2.9% range.

A negative number would give economists reason to put the US into a recession (two negative GDP quarters in a row), although like a Greece default, that official announcement will not come anytime soon.

So let’s see what the next two months bring us. As I said earlier, late September and October should be interesting times.