Crisis Hour: Europe May Withhold Half Of €12 Billion Greek Aid As No Emergency Meeting Decision Reached

Tyler Durden's picture

EUR longs sure are missing Paulson's bazooka, as currency sell orders may flood the tape as soon as trading resumes at 5pm following the latest one-two knockout pair of news about Greece, which just went through the eye of the hurricane on Friday, and is about to be rocked all over again. According to Bloomberg, the math of the Greek bailout, which as we already discussed is highly impossible, is about to be made even more ridiculous, after European finance ministers have decided they may only authorize half the critical €12 billion rescue payment: "Euro-area finance ministers may authorize only a 6 billion- euro loan to
tide Greece through bond redemptions in July, while further aid hinges
on Greek budget cuts, Belgian Finance Minister Didier Reynders said. “We will in any case try to release the necessary funds for the short
term,” Reynders told reporters before a meeting of euro-area finance
ministers in Luxembourg tonight." What's worse is that any hope Europe may have finally reached a consensus on how to proceed with Greece, has once again crumbled after "Dutch Finance Minister Jan Kees de Jager said he doesn’t think euro area finance ministers will agree on a new rescue package for Greece at talks in Luxembourg today." In other words the "we'll make it up as we go along" bailout continues although any faith a credible settlement will be reached is by now completely gone.

From Bloomberg:

European governments weighed withholding half of Greece’s next 12 billion-euro ($17.2 billion) aid payment, seeking to keep the country solvent while maintaining pressure on the government to slash the debt that pitched the euro area into crisis.

“We will in any case try to release the necessary funds for the short term,” Reynders told reporters before a meeting of euro-area finance ministers in Luxembourg tonight.

Europe’s financial brinksmanship ran in parallel with Greek Prime Minister George Papandreou’s effort to save his government from collapse and win parliamentary backing for spending cuts, tax increases and state-asset sales needed to keep bailout funds flowing.

Tonight’s euro-area finance ministers’ meeting coincided with the start of a three-day Greek parliamentary debate in Athens over a confidence vote in a new cabinet at what Papandreou called a “critical crossroads.” Papandreou has 155 seats in the 300-seat parliament.

Papandreou said he planned to hold a referendum later in the year for changes to the constitution that would reform the political system in the country. The prime minister said his goal was to tackle the root causes of the country’s debt and deficits that are “symptoms of the illness, not the cause.”

On the table are incentives for bondholders to maintain their exposure to Greece, said Luxembourg Prime Minister Jean- Claude Juncker, chairman of the talks. He ruled out an agreement tonight on a new three-year package for Greece, pointing to July for a “final and overall answer.”

And adding insult to injury is the news that this critical weekend, which many had expected would solidify a European consensus over Greece, has just proven to be yet another failoure.

Dutch Finance Minister Jan Kees de Jager said he doesn’t think euro area finance ministers will agree on a new rescue package for Greece at talks in Luxembourg today.

“You have the fifth tranche, which depends on the Greek implementation of austerity measures and the IMF assessment of that,” De Jager said. “But the real discussion at the moment is about the possible second program and there lies the real discussion today. We are going to debate on that and that will be a very heavy debate.”

De Jager said he sees no need to expand the European Financial Stability Facility.

“The net value of 750 billion euros is enough, so we should stick with it,” he said. “Coming out of this crisis, the most important thing is more austerity measures, more economic reforms and of course if Greece will perform, will implement all those measures. Then we will be there, if also the private sector is participating.”

In the meantime, nothing has changed on Syntagma square, where indignant Greeks continue to ask the logical question: just how will the Greek economy grow if everyone is on strike for the next several years?

And below is Max Keiser doing his best to rile up the troops:

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blindman's picture

Max Keiser’s Syntagma Sq. “Greece in under bankster occupation” speech translated into Japanese

Posted on June 19, 2011 by maxkeiser

ISEEIT's picture

This is the shit. Ludwig is getting challenged. Ludwig is in the ring. No way that anyone really knows shit, so the proof is in 'da puddin. Ludwig VS the machine.

I love this because nothing is better than reality. I hope the asshats push it over 1.44 because the higher they play, the more fun the jump down will be.


gringo28's picture

go ahead, short the euro and then bend over for mao tse's tung. idiots waiting for europe to implode are about as stupid as those waiting for godot.

Raymond K Hessel's picture

Unh're stoopid...stoopid monkee.

Quixotic_Not's picture

Mt.Gox (Bitcoin exchange) Account database hacked

The monkey got spanked!

Dear Mt.Gox user,

Our database has been compromised, including your email. We are working on a
quick resolution and to begin with, your password has been disabled as a
security measure (and you will need to reset it to login again on Mt.Gox).

If you were using the same password on Mt.Gox and other places (email, etc),
you should change this password as soon as possible.

For more details, please see this:

The informations there will be updated as our investigation progresses.

Please accept our apologies for the troubles caused, and be certain we will do
everything we can to keep the funds entrusted with us as secure as possible.

The leaked data includes the following:

- Account number
- Account login
- Email address
- Encrypted password

While the password is encrypted, it is possible to bruteforce most passwords
with time, and it is likely bad people are working on this right now.

Any unauthorized access done to any account you own (email, mtgox, etc) should
be reported to the appropriate authorities in your country.

The Mt.Gox team


Looks like ol' Conrad Murray is eating some nasty crow today!

dwdollar's picture

Not good.  But only if you keep your Bitcoins on that site and not in your Bitcoin Client.

uniman's picture

Ouch! It's not hard to guess that anything on the Internet that has anything to do with money is going to get scammed/attacked.

Bitcoins is a great idea and a good thing if it can survive the real-world.  This most recent attack on an exchange site left the system standing and many users scrambling to harden their usage of BTC.

What doesn't kill it makes it stronger.

Quixotic_Not's picture

Good luck to them...

Personally, I don't trust the .gov with my store of wealth, I certainly couldn't trust it to exclusive access via anonymous connections on the Internet!

Sorry, but that's just pie-in-the-sky kar-razy...LOL

dracos_ghost's picture

Reluctantly, I have to agree with you. Once the shylocks find out that China is an angel creditor, that high yield Greek debt will look tasty.

Dump dollahs, buy euros and get a ridiculous yield. $2T in excess reserves will buy a lot of souvlaki.

These little Lord Fauntleroys have lost control and we will be lucky to survive.

Oh regional Indian's picture

This Greek tragedy is being wrung and strung out for some very good data point collection by PTB.

How much goading will a people take after 15 years of fattening up?

Iceland stood up. Zimbabwe stood up. After that?

Folding like a house of cards....Ireland? UK? Greece?

The sovereign debt crisis is a permanent fixture of our fare now.

Rolling thunder...


The Aviator's picture

Keiser is a real modern day hero. Exposing the banksters and bringing silver into the WORLD's spotlight!
Time to finish the job and help Keiser take silver viral! We'll take these banksters down yet!

scratch_and_sniff's picture

He's a show man, he knows that if Greece defaulted the "austerity" felt at the moment would be small potatoes, but it doesn’t stop him grabbing the mic and doing his merry dance. We are talking about the total collapse of the state, hyperinflation^x and NO public sector jobs at all and forget about pensions, severe poverty, and the break up of the Euro, leading to all sorts of problems for each and every Euro member state...its not going to happen anytime soon, i will bet my balls on it.

Quintus's picture

Everything you describe is going to happen anyway whether the next 'Bailout' happens or not.  There is no fix for a country as deeply in debt as Greece, certainly not the EU 'Solution' of adding even more debt.

The choice the Greeks face is whether to default now or default after a few more years of progressively greater poverty and enforced austerity during which their public assets will be strip-mined and sold off to the banking fraternity and their well connected wise-guys.

It's not really a tough decision, and the Greek public have already made it.

disabledvet's picture

you really can have a coup.  "it's that serious" as much as i poke fun at it all.  what happens to the other European democracies or "democratic order" is anyone's guess.  obviously the PM should have already resigned and without a doubt he has not done so for fear of prosecution.  he's only digging a deeper hole--for his country of course as he's already done.  with Libya a disaster "how many Germans does it take" again?  Only one?  This story only begins with the failed state of Greece.


scratch_and_sniff's picture

In case someone forgot to tell you, the public dont actually make the decisions. If the government default now, after so little effort to reconcile the situation, they will be banished to the dark ages. All they have done is take handouts, this was going on long before the crisis, you cant blame it on ponzi economics only when the SHTF, it has just been good old fashioned incompetence that got them here, now they realise they might have to pawn some shit to pay it down, and the toys come out of the pram. I dont sympathize, sorry.

Quintus's picture

Banished to the dark ages?  You mean like Iceland who are back in the bond markets already and selling debt at 5% vs 11.5% that "Good European" Ireland would have to pay if they could ever persuade anyone other than the ECB to lend them money?  

Lots of countries have defaulted in recent decades and every single one of them was back in business again within a few years.  Enough with the banker scare mongering about dark ages, plagues of locusts and so forth - it's never happened in reality, regardless of how much the banking M.A.D.-mongers would like it to be so.

How and why the Greeks got to this position is pretty much irrelevant to what they should do next; crying over spilt milk and all that.  In the here and now they have two choices:  Default now or default later from a much worse position.  When you have ministers resigning from the government 'Because they want to be able to walk the streets safely' I think it is a bit simplistic and childish to say that the public is irrelevant to the decision making process.

Incidentally, I doubt anyone over there is asking for your sympathy.

Armando Javier Finkeltein of the Boise Finkelsteins's picture

Stop with this talk about Iceland.  It is a frickin country of 300,000 people.  It means nothing. They have 3 blacks, 2 Poles and 5 Mexicans.

Quintus's picture

Jesus Christ.  Ok then. Russia?  Argentina?  How about you name me one country that has ever defaulted, having first reached an approximately 'Western' level of economic development and is still unable to access the bond markets.

scratch_and_sniff's picture

Iceland is nothing like Greece, Iceland was only 80bln of banking debt, it was not mountains of sovereign debt that had been shared out in pensions and public sevant jobs, and when iceland defaulted it was only running a 2% shortfall of GDP but still in growth and taking healthy tax revenues, not a 9.2% shortfall and in deepening recession, in a country where the only people who need to pay tax are public servants. WTF?

As for saying that how and why the Greeks got to this position is pretty much irrelevant, well thats not how i see it. If they spent the money among themselves, they should at least try to have a go at paying it back, as i said, it was incompetence that got them in their position - it wasn’t some colonial masteres of the universe hit job, they took the rope to hang themselves. Beyond bankers, there is a degree of responsibility for doing business with anyone, this does not look good for greece.

"I think it is a bit simplistic and childish to say that the public is irrelevant to the decision making process." thats a good one, were they in the decision making process when they were taking the handouts? No they didn’t mind at all. All of a sudden they are all economists when they have to pay back. Fuck em.

Quintus's picture

"In case someone forgot to tell you, the public dont actually make the decisions." - The Public do not make all the decisions

"I think it is a bit simplistic and childish to say that the public is irrelevant to the decision making process." thats a good one, were they in the decision making process when they were taking the handouts? No they didn’t mind at all.  - The Public were making the decisions

Come on mate you can do better than that.  At least try to be consistent.

scratch_and_sniff's picture

You are misunderstanding me, inconsequential really, but the implications of what i said was that they did not bloody care about the any decisions aslong as they were kept sweet! Now they want to make all the big decisions, hard luck. Why weren’t they on the streets protesting when they had pay rises and pension top ups? Where were all the armchair economists and frugal lobbyists proclaiming that they were heading into deficit la la land and the government should stop spending immediately! No where to be seen. There was no cap on the stupidity, now they want to offload the problem elsewhere…I have nothing to lose, don’t really care, but call a spade a spade and lets be done with this.

Quintus's picture

There is no moral high-ground to be had here.  Everyone in the US who bought a McMansion on credit that they had no realistic hope of repaying...Every northern European who bought a holiday villa on the Costa del Sol by re-mortgaging their house to the max...everyone who took out multiple credit cards on which they can only make the minimum repayment....and every Greek who believed they deserved an inflated pension at age 50...they all bought into exactly the same lie that every government in the western world was peddling - "Don't worry about the future - just enjoy yourself now and we'll make sure everything is alright tomorrow".

I heard nobody objecting anywhere when the good times were rolling, but now that it's time to jinglemail the keys of McMansion, give up the holiday home, cut up the credit cards and take a pension cut - now everyone wants to blame the other guy.

hamurobby's picture

Look at it this way, at least the Greeks (like Americans) know how to default, its an ongoing theme.

scratch_and_sniff's picture

I dont know about it all being a lie, i think you are giving government way too much credit. There is hand-over-fist incompetence, sure, but in the end it doesn’t go unnoticed. Do you know how many Greeks declared income of over 1mln euro in 2010? Wait for it,(cue watery fart noise at end of drum roll) 6. Yip, that is six lol. And a grand total of 85 of them declared income of over 0.5mln euro, yes 85. The reality is that a lot of greeks are sitting on a lot of hidden wealth, coochekoo whos a clever greek, and yet they expect the outside world to pay for their public sector noose. I don’t know about your moral high ground mate, but im claiming mine, I say fuck em.

nicxios's picture

Wow, you cracked the case Sherlock. <shock>Rich people avoid the taxman!</shock>

scratch_and_sniff's picture

<shock> yeah, all but 6 of them...</shock>

Founders Keeper's picture

[Enough with the banker scare mongering about dark ages, plagues of locusts and so forth - it's never happened in reality...]---Quintus

Yes, I'm sure you're right. The Great Depression of the 1930's in the US "never happened in reality." 

And Weimar Germany. I'm sure that was just a fairy tale with a happy ending.


The heads of state warning of financial Armageddon is actually true.

The promise from heads of state claiming they can fix the problem is a lie.


Quintus's picture

Not sure what either of those two events has to do with a sovereign default?  Which is, since you seem to be a bit slow on the uptake, what we were discussing.

Jason T's picture

Have you ever read about the German economy post 1935 after hitler booted the international bankers out once and forall?  They bartered as jews boycotted them and international finace would not allow them to trade with their "sovereign currency."  They were quite a much so, it took both the capitalists of the West and Communist of the East to defeat little Germany, with their own sovereign currency.  

Ahmeexnal's picture

Spreading lies again?

Rockefeller/JPM/Ford and many internationalist NWO (Church of Rome at the helm) are the ones who propped up the "german miracle".   The "sovereign currency" you speak of was based on "arbeit".  Slavery backed currency.  And that's what the Euro is all about.

A Man without Qualities's picture

Well said - international bankers, especially from the US were a vital part of the building of the Nazi economy.

usefuloutput's picture

Good point,

May I add Vereinigte Stahlwerke AG,

aka Thyssen. (steelworks)


russwinter's picture

This is a myth, with a default in two years Greece will be right back in the credit markets, borrowing at relatively reasonable rates.  Iceland just borrowed at 5%. The additional good news is that the world will be without the burden of several large banksters. 

A Man without Qualities's picture


russwinter's picture

Technical that is correct, instead they let their banks collapse.  Massive banking haircuts is the preferred solution, but a restucturing of debt is twiddle dee twiddle dum. 

bob_dabolina's picture

Well they can still afford copper bromide lasers as can be seen in the video so it can't be that bad. 

Wouldn't surprise me if they brought in Tiesto and started dropping exstasy. 

Fuckin' Greeks. 

AndItsGone's picture

The less we say about it the better
Make it up as we go along
Feet on the ground
Head in the sky
It's ok, I know nothing's wrong

Paralympic Equity's picture

Just read it on bloomberg, I was stunned and happy at the same time...200 DMAs here we go...I'll wave to CAC when it passes in front of my window...

Don Quixotic's picture

Have there been any signs, whether positive or negative, in the FX markets? Also, can someone link me to a reliable, live site where I can get FX info?

gwar5's picture

Max is everywhere! Go Max Go!

The EU experiment is more evidence central planning is just an arrogant and destructive endeavor.

ThoughtCriminal's picture

a year or so ago, i advised Max to look into something like this:

"STOOF International has numerous armoured vehicles presently operating world-wide in extreme dangerous war zone and crisis areas ..."



slewie the pi-rat's picture

the banksters are getting end played and must send them enough money to replenish the Strike Fund, comrade BiCheZ...

bugs_'s picture

Which 5 star restaurant will we have our next emergency meeting at?  Its just so hard to achieve consensus today.  (which is amazing since they all think the same, do the same, ponzi the same, hurt the same).

disabledvet's picture

i'd like to think this is a parody of what's going on "over there"...unfortunately, IT'S NOT!

while the rest of us are hanging out on the beach with Bugs this summer, perhaps some reading material?

bob_dabolina's picture

The dollar is going to EXPLODE higher. 

Let the games begin bitchez.