Archive - Jun 18, 2015

Having vehemently denied teh rumor that Benoit Coeure specifically said he questioned whether Greek banks will open on Monday, The ECB has, rather awkwardly, admitted that:

*ECB SAID TO HOLD UNSCHEDULED CALL ON GREECE ELA ON FRIDAY

Given the accelerating outflows and implicit bank run today's comments will create, if The ECB does not re-up the ELA, it is indeed over for Greek banks (unless Russia or China step in over the weekend) come Monday morning.

It’s over. Except for a short moment or a wild and self-exhausting governmental mandate (both of which are doubtful), there will never again be enough “good jobs” to go around. That model is gone and we need to root it out of our imaginations.

Distracted by The Dow, "white" black people, and Caitlyn Jenner? Well back in the real world...

BANZAI7 FOOD AND BEVERAGE WARNING...

Just minutes after Greek FinMin Varoufakis warned people were trying to "incite capital flight" from Greece and Dijsselbloem stated that "capital outflows from Greece are worrying," Reuters is reporting that The ECB dropped the bank run hammer:

ECB TOLD EURO ZONE FINANCE MINISTERS IT WAS NOT SURE IF GREEK BANKS WOULD BE ABLE TO OPEN ON MONDAY- OFFICIALS

Friday sees Russia-Greece meetings and Euro area leaders are supposedly meeting on Monday evening due to the seriousness of the situation so it appears the endgame is looming large one way or another.

The recent peak in profits, combined with substantially elevated P/E ratios, is likely suggesting that forward return expectations should be revised sharply lower.

"The time it takes for the global regulatory community and central banking world to find a solution this time may be longer than the time where one episode of big illiquidity happens. Then the question is what to do. In my view the only thing that can be done at that time is that central banks should become again market makers of last resort."

Fair? Yes. Confusing? Most certainly. But nobody ever said the unwind and collapse of massive, "political capital"-funded artificial monetary regimes is logical, calm and collected...

So a nation that had essentially 40 continuous years of production expansion suddenly goes into a tailspin upon changing up the monetary basis of trade suggesting that we can pinpoint the culprit. A 5 year old could pick up on this actuality. So how is it that these supposed omniscient academics at the ECB are simply incapable of seeing the blatantly obvious?

The Troika - whose intention from the very beginning was to cripple Greek banks so badly and terminally that Tsipras and Varoufakis are forced to accept any terms hoisted on them as we predicted in January - has succeeded. The only question is how long until the Syriza government admits defeat.

Chinese stocks had a tough night with CHINEXT dropping back into official correction once again and the rest of the Chinese stock euphoria fading systemically. In fact, Chinese stocks have gone nowhere in the last month - which is a major problem for a margin-loan-driven ponzi-fest. However, there is a much more worrying canary in China's coalmine which as one analyst warns means "investors are becoming more fearful than greedy." The "No-Brainer" China IPO Trade has tumbled in the last few weeks as limit-up gains disappear, and is nearing a bear market.

Another day over, and another failure to reach a Greek deal, except for the usual pathetic rumor mill allowing "someone" to exit positions:

• NO DEAL AT EUROGROUP, SAYS DOMBROVSKIS ON TWITTER

As Greek belligerence grows:

• GREECE WON'T BE BLACKMAILED, GREEK GOVT OFFICIAL SAYS
• GREEK GOVT SAYS SOME PEOPLE SEEKING TO INCITE CAPITAL FLIGHT

And now, onward to the next Eurogroup meeting.

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