Details Of €120 Billion Greek Bailout Send EURUSD Higher

Tyler Durden's picture

Wondering what lit a fire under the EURUSD? Wonder no more, courtesy of Reuters:

  • New bailout for Greece likely to total about EUR 120bln according to Eurozone sources
  • New bailout may comprise EUR 30bln from private sector, EUR 30bln from privatisations, up to EUR 60bln from EU/IMF
  • Remaining loans from initial Greek bailout would be disbursed alongside new bailout, according to Eurozone sources

And yes, as predicted the final amount will be far greater than previous expectations of under €100 billion.

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oogs66's picture

the meaning of 'private sector' must have changed now that the 'public sector' tells it what to do

A Man without Qualities's picture

No, the meaning of "private sector" changed as soon as it became clear that the "public sector" would make good any of their losses....

PaperBear's picture

Time for the Greek people to come out in the streets again.

The number of people is getting bigger.

the not so mighty maximiza's picture

allot of money for just 1 more year play time.

MarketTruth's picture

One year? My my you are an optomist! Try perhaps six months... if they are lucky.

Caviar Emptor's picture

This Greek bailout brought to you in part by: Portugal...Spain....Italy...Belgium...Ireland...Hungary...

Rodent Freikorps's picture


Why negotiate when you have the ECB by the balls?

Austerity is for Germans. Dipshits.

Azannoth's picture

Germans with their eternally guilty consciences for things they didn't do, will embrace austerity like a nun a dildo

Rodent Freikorps's picture

Well, Germans need to get the hell over their mental disease and realise the road to hell is paved with good intentions.


Mr. Poon's picture

Serious question, is this some sort of a game?  Is this really a psychology experiment that none of us are aware of, where they try and see how many times they can float an unsubstantiated rumor before absolutely nobody believes anything that comes out of these "official but anonymous" sources?

A Man without Qualities's picture

Great comment from today's FT...

Germany’s plan, reported on Wednesday, to ask Greece to offer its debtholders a seven-year term extension only underlines my country’s economic difficulties. But in truth Greece faces an even deeper political and social crisis. Given this crisis has been created by most Greeks, politicians and society alike, it will take more than a restructuring to fix.

The Greek political landscape is ingrained with vested interests, endemic kleptocracy and bribery. Since the days of Andreas Papandreou, an economist and father of the current prime minister, our politics has been predicated on the expansion of the public sector, patronage and borrowing. But while he failed Greece as an economist, as a politician the elder Mr Papandreou succeeded in turning his party into the most potent political player, with the unconditional support of trade unions in return for perks.

Tense INDIAN's picture

now I have more confirmation that Nifty MAY rise from tomorrow itself.....

The Count's picture

...and the winner is....GREECE! Forget about the demonstrations and whining. Essentially they are letting the EU pay all their bills. Will they ever pay all this money back? Of course not!

Greece found a bunch of idiots that not only accepted the doctored statistics for years but are even willing to sacrifice the truly solvent and fiscally conservative countries just so they wont have to admit that the entire Euro project is a fiasco.

Dr. Richard Head's picture

So the continued debasing of a currency will send that currency higher over and over again?  What a fucking bizarro world we live in. 

Natasha's picture

Bailout is on

It's off

It's bigger

It's a rumor

Greece is fooked

Greece is saved


Intentional obfuscation or in-your-face stupidity?

citta vritti's picture

it’s like hockey, only where are the concussions?

sbenard's picture

How can anyone with half a peabrain think that the answer to crushing debt is to create MORE debt? Is this what is sending Wall Street into a paroxysm of delight in the past few minutes? Have all those lunatics and educated imbeciles on Wall Street had a lobotomy?

Gordon Freeman's picture

Actually, the U.S. taxpayer will be paying a significant amount of the bill.  Plus, at 120B, only 880B to go...

All in all, very, very bullish!

Mountainview's picture

The US taxpayer can't even pay his own Treasury... no chance to participate in international funding...

Robslob's picture

New bailout for Greece likely to total about EUR 120bln according to Eurozone sources

New bailout for Greece likely to last 9 months according to Eurozone sources

New bailout for Greece likely to last 6 months according to Eurozone sources

New bailout for Greece likely to last 3 months according to Eurozone sources

New bailout for Greece likely to lead to Greece default


firstdivision's picture

Riots to commence in t-minus 1 hour....

j0nx's picture

As long as people keep accepting it then TPTB will keep doing it. American taxpayer money being ANYWHERE involved with this should IMMEDIATELY constitute an act of treason and anyone involved with that should be dealt with appropriately, but Nope, Americans would rather watch TV, drink beer and participate in flash mobs. I would literally be laughing my ass off at the ridiculousness of the American public if I were part of the 'gang' in DC and Wall Street who are doing the robbing. It is without a doubt almost right out of Idiocracy.

swissinv's picture

Like paying chess... Now US to turn the pawn and everbody gonna focus on debt ceiling/QE 3 until the EU has to move again. Who's having the better strategy? Who's chessmate first?

Orly's picture

Luckily for you guys, your Swissie may start taking it on the chin right about now...

swissinv's picture

I doubt the SNB is happy about any moving pawns.

Orly's picture

I'm sure Hildebrandt wouldn't be too happy about the currency moving to fi'ty cent, either.  (People assume he was talking about the Euro.  I think he was talking the greenback, myself...)  It seems about time that the Swiss give back a little bit because, I believe you would admit, the skew in the Swissie and the Japanese yen has the entire 4X market spinning in circles.

If the CHieF gave back a little and the yen gave back a lot, I think the whole world would be much happier in the interim between now and a global fiscal cataclysm.


swissinv's picture

Agree with adored Orly, think in the short-run the USD will indeed stengthen against the CHF as people will run from equities into cash (not treasuries)... but things can change quickly - too many critical macro events going on...My credo NO SHORTS, and since FX pairs always have short side, I'm only long FX options with TIME value (to keep up to expirey and of course USD bearish). The outcome for macro trends are actually quite certain in the long-run while you fight with huge uncertainity in the short-run.

TexDenim's picture

Hey, no problem! You'll get your money back, for sure. What could possibly go wrong?

Pain Train's picture

Would somebody correct me if I have this wrong...but the way I see it, Greece can pretty much tell the Euros to kiss off as far as the terms of the bailout go, and the Euros will STILL bail them out...because they MUST. If Greece goes under, the German and French banks who loaned all the money go under, and more significantly, all the derivitives derived from all these loans unwind, absolutely destroying the Eurozone. So in the end, the Euros have no choice regardless of what the Greeks agree to, putting Greece in the driver's seat with a TON of leverage.


Is this more or less correct???

Orly's picture

Not necessarily, in the way I understand it.  It seems the sticking point is whether private bond investors are willing to have their capital halved in order to extend the Greek malfeasance.  They are not...yet.  But they will be.

The Eurozone and the IMF are trying to stave off massive losses for their private golf partners on the A circuit.  I personally think that will fail.  At that point, the Eurozone (ECB...) will be forced to shore up the balance sheets of their own sovereign debt and will have no choice but to throw their foursome under the bus.

Right now, they are trying to have their cake and eat it, too, along with the US, UK and anyone else who is trying to push private losses into the public domain.  They can believe what they will, but I cannot recall a time when this utopian fantasy would have worked.

It didn't in 1789 and not much has changed since.

Maybe Pharoah.  Pharoah could have gotten away with it.  Maybe.


Addo: But in direct answer to your query: yes, they will bail out the Greek government, the French government and the German government.  All the other players are going to be told to take a long walk off a short pier.

Pain Train's picture

I see, I see...very good explanation- much appreciated! Gonna get ugly.

Orly's picture

In my humble opinion, of course.

I just don't see any other way out.

dracos_ghost's picture

Wasn't this a Soprano episode where they fleeced the Sports store owner.


AldoHux_IV's picture

The Greek protestors and people still have the choice to take their country back from the kleptocrats-- the nazi regime that is the EU/IMF/ECB will not succeed in this latest attempt to enslaving the european people: flawed economic designs that only create imbalanced prosperity always have an ugly way of unwinding.

No matter how many times policymakers repeat their meaningless words, this experiment will blow up in their faces.

Buyemall's picture

Looks very nice and fair everybody chipping in...