Stock futures are up this morning on news that Alexis Tsipras Backs Down on Many Greece Bailout Demands.

A reader asked me about Tsipras’ cave in, but I responded it is nothing but a political ploy ahead of the July 5 referendum as to whether or not Greece should accept the creditor’s take-it-or-leave-it offer.

I am not the only one who sees it that way. In spite of numerous headlines that make it appear as if this was a significant breakthrough.

  • Wolfgang Schäuble, Germany’s hardline finance minister, gave the latest Greek initiative short shrift, saying it was “no basis” for serious talks.
  • Eurozone officials involved in the talks cautioned Mr Tsipras’s remaining demands in the letter were “not a handful of minor changes” and would have “significant fiscal impact” and may not be acceptable to creditors.

Gaming the Vote

There was no cave in, this is merely electioneering by Tsipras to counteract the nonstop meddling and electioneering by Germany, France, Spain, and European Commission president Jean-Claude Juncker.

For details, please see Greece Rejects 25th Hour Request to Change Course; Tsipras Asks Eurozone for Third Bailout; Rajoy Seeks to Save His Own Ass.

No Vote Lead Narrowing

FXStreet reports Greek Referendum Poll Shows Lead for ‘No’ Vote Leading but ‘Yes’ Catching Up.

Another Greek bailout referendum opinion poll is out, conducted by prorata polling institute for efimerida ton synatkton newspaper, with responses before bank closure showing yes 30 pct, no 57 pct, don’t know 13 pct, while responses after bank closure have seen yes 37 pct, no 46 pct, don’t know 17 pct.

Rather than caving in, Tsipras’ proposal was simply a means to influence votes. As I noted yesterday, “As pertains to game-playing, Greek leaders have run circles around the eurozone nannycrats.”

Mike “Mish” Shedlock