This page has been archived and commenting is disabled.

Germany's Lars Feld Urges ECB To Agree To Greek Restructuring

Tyler Durden's picture




 

Well over a month after predicting the second Greek "bailout" plan was just hot air, we are not only back to square minus one but heading backward. And while the market's attention is now focused on Italy, and soon Spain and Belgium, the weakest link still is Greece, whose bankruptcy, despite all the posturing may be coming sooner than most expect. It appears that Germany is once again in the renegade drivers' seat and has reverted to its core plan of taking its chances with a Greek default, breaking away from the ECB's position, and ultimately saying let the chips fall where they may. To wit, from Market News: "Lars Feld, a member of the German government's Council of Independent Economic Advisers, on Thursday criticized the European Central Bank for blocking a restructuring of Greek debt."

A lot of time has been lost up to now "in seriously taking on a Greek debt restructuring and communicating it effectively to market participants, especially because the ECB is opposing a restructuring," Feld told German business daily Handelsblatt in an interview published on its website.

"Thus, it is time now that the ECB together with the heads of state and governments makes this best-case scenario possible," the wise man insisted in the interview.

He argued that a restructuring of Greek debt was manageable if the Greek banks and, if necessary, also other banks in the EU were supported.

We can't wait for the barrage of BS to come in response from Barroso, Von Rmpouy and all the other klepocrats who now realize it is just a matter of time before their monetary dream becomes a nightmare.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Thu, 07/14/2011 - 08:29 | 1455491 Franken_Stein
Franken_Stein's picture

 

Leo Kirch is dead.

 

Thu, 07/14/2011 - 08:34 | 1455496 snowball777
snowball777's picture

Good riddance...I can't forgive what he did to F1.

 

Thu, 07/14/2011 - 08:55 | 1455540 Ethics Gradient
Ethics Gradient's picture

"I'm really boring. I like sportscars."

Thu, 07/14/2011 - 09:06 | 1455578 snowball777
snowball777's picture

And you have added...?

Thu, 07/14/2011 - 08:36 | 1455498 wandstrasse
wandstrasse's picture

I never thought that someday I would regret this kind of oldschool cronyism.

Thu, 07/14/2011 - 08:37 | 1455501 SheepDog-One
SheepDog-One's picture

So now they called all the past few months 'just wasting time', and now its time to knuckle down and get serious talking about Greece and whatnot? What a bunch of BS, bottom line these people have no answers, same for the US, what we're watching is ongoing delay tactics thats ALL.

Thu, 07/14/2011 - 08:40 | 1455507 slaughterer
slaughterer's picture

Happy Meal #1:

No restructuring, Greece receives support from sovereign states (=taxpayers).

Happy Mean #2:

Restructuring, banks receive support from sovereign states (=taxpayers).

Thu, 07/14/2011 - 08:44 | 1455514 snowball777
snowball777's picture

Happy Meal #1 will cost the taxpayers a great deal more than Happy Meal #2...especially if they had the good sense to leave DB and their ilk twisting in the wind.

And the IMF will pout if they don't get the toy inside #1.

Thu, 07/14/2011 - 08:59 | 1455552 slaughterer
slaughterer's picture

Ha Ha.  Correct.    IMF will  do more than pout. 

Thu, 07/14/2011 - 08:51 | 1455529 wandstrasse
wandstrasse's picture

I was a teen in the 1980s. At that time the US seemed both frightening (military) and fancy and fascinating to me, but totally unreachable. USA was so different, so distant. Today, as Europe and the US are in the same deep shit, the US is so close. When I am browsing ZH I feel like I could jump on my bike and have a beer and a chat with everybody here. Very strange.

Thu, 07/14/2011 - 09:00 | 1455560 cahadjis
cahadjis's picture

The fact that you mentioned "bike" shows how far distant we are to the americans, nobody uses them over there. Believe me, it's a massive gap in habbits, awareness, politics, but on the other hand also business acumen, entrepreneurship, and live-and-let-live on their side.

Thu, 07/14/2011 - 09:11 | 1455592 wandstrasse
wandstrasse's picture

I dealed a lot with Americans in some of my jobs, and I was there a couple of times, I know what you mean and I fully agree. My feeling has little to do with reality, but nevertheless it is quite tense and strange. I do not know what it means.

Thu, 07/14/2011 - 09:24 | 1455652 cahadjis
cahadjis's picture

The internet works wonders doesn't it!

Thu, 07/14/2011 - 09:13 | 1455604 Reptil
Reptil's picture

That's because you are seeing it.

Thu, 07/14/2011 - 08:43 | 1455511 apberusdisvet
apberusdisvet's picture

The extend and pretend virus is incurable; all patients on life support; pull the frickin' plug.

Thu, 07/14/2011 - 08:44 | 1455515 Cassandra Syndrome
Cassandra Syndrome's picture

I keep saying this, I think they haven't the money to bailout Greece.

Thu, 07/14/2011 - 08:57 | 1455545 qussl3
qussl3's picture

Banker fiat is infinite they can create it out of thin air.

Only problem is that its also a debt obligation, and now noone is willing to take on the debt to create it, sure the ECB can print, but that would reduce their credibility to zero.

Gonna be fun to watch.

Thu, 07/14/2011 - 08:59 | 1455553 Ethics Gradient
Ethics Gradient's picture

They only need 20 minutes with a good Xerox and the immediate problem with Greece is solved. They just don't wont to deal with the fallout of pressing ctrl+p and giftwrapping the result.

The on-going issue can be resolved with Euro bonds, but there are issues with that as well.

You may be confusing Cassandra syndome with something else.

Thu, 07/14/2011 - 08:52 | 1455532 Version 7
Version 7's picture

They are realising that the whole thing is a house of cards about to fall down: next Italy, then Spain, then Belgium, then Portugal again..etc. Better stop it sooner rather than later. With regard to the banks, just let them go. And whatever happens, happens.

Thu, 07/14/2011 - 08:52 | 1455534 Ancona
Ancona's picture

Fuck the banks. Let them hang in the wind to twist. I have absolutely no feelings for these crooked, elitist thieves.

Fuck 'em and feed 'em fish heads.

When the shit hits the fan and the People are starving, I will be first in line with my pitchfork on the road to the Hamptons to hunt the evil mother fuckers down.

When the People get the final fucking, they will roll on these monsters and do a little bit of their own wealth redistribution.

Thu, 07/14/2011 - 09:02 | 1455566 A Man without Q...
A Man without Qualities's picture

Do you blame the barman every time you wake with a hangover?

I'm not going to defend the banks, but I am much more angry with the politicians, the tax dodgers, the union leaders who refused to allow businesses to modernize.  There are many people to blame for this disaster, but this is a failure of a kleptocratic, cronyist society who's leaders have been playing everyone for fools..

Thu, 07/14/2011 - 09:31 | 1455694 snowball777
snowball777's picture

You're railing against Pinocchio and letting Gepetto off the hook?!

 

Thu, 07/14/2011 - 09:04 | 1455573 Franken_Stein
Franken_Stein's picture

 

Little hint:

 

South-Hampton, Lake Agawan

 

Thu, 07/14/2011 - 09:22 | 1455642 Commander Cody
Commander Cody's picture

I despise the banksters as much as you do; however, when TSHTF people without will 'roll' on the nearest people with.  I don't think they'll take the trouble of driving out to the Hamptons.

Thu, 07/14/2011 - 09:01 | 1455564 SwingForce
SwingForce's picture

The whole idea is to keep the wealth transfer via CDS trigger from happening. And by the behavior of XLF, it doesn't look like that group of stocks OWNS any, they probably were sellers too. 

Thu, 07/14/2011 - 09:10 | 1455589 Franken_Stein
Franken_Stein's picture

 

The former budget director of Ronald Reagan, David Stockman, who is often quoted here by Tyler, recently said in an interview, that in the 30 years since 1978, when corporate citizenhood was introduced, until today, around 40 trillion dollars have been transferred to the upper 5 % of the population.

 

That is as much wealth as the entire human race has created in the 10000 years before 1980.

 

Now let that sink in for a while.

 

Thu, 07/14/2011 - 09:16 | 1455612 snowball777
snowball777's picture

Does it hurt less if you know most of it was paper and empty promises?

Thu, 07/14/2011 - 09:16 | 1455614 wandstrasse
wandstrasse's picture

but but but... you must also mention that the elite is 1,645,000,000 times as intelligent and talented as an average human, and that each of them is working 2,900 hours per day (this is just the average). There IS a justification for their wealth.

Thu, 07/14/2011 - 10:53 | 1456003 Rick Masters
Rick Masters's picture

+1100 I hate the garbage about how the uber-wealthy obtained their wealth thru meticulous hard work and smarts when most of it was handed to them via blood lines.

Thu, 07/14/2011 - 09:21 | 1455639 LawsofPhysics
LawsofPhysics's picture

+1567  Yep.  The GOP only talks about wealth transfer when it is going in the other direction.  The problem with this particular wealth transfer and the GOP cry of "no new taxes" is further compounded by many average Joe's thinking that they are really wealthy.  Let the sheep be sluaghtered if they are smart enough to realize they are sheep.  Fuck it, at this point crashing the system is the only way compensation will return to those who are actually worth a shit.  Now the debt limit circus.  Funny how these same GOP leaders raised the debt ceiling 12 times under Bush.  Is everyone simply stupid?  Yeah, keep transfering more and more wealth to fewer and fewer people, we all know how this ends.  Too bad most of the "wealth" isn't even real.

Thu, 07/14/2011 - 09:33 | 1455700 snowball777
snowball777's picture

No new no-bid defense contracts!

No new tax loopholes for GE!

 

Thu, 07/14/2011 - 09:17 | 1455620 praps
praps's picture

Germany knows that its own prospects are f*cked long term because of high debt (80% of GDP) and a terrible aging demographic profile. It can't afford to pour billions down the Greek toilet.

Thu, 07/14/2011 - 09:23 | 1455650 wandstrasse
wandstrasse's picture

right, I would be fine if even just a few millions were in my (German) toilet. I would pick them regardless of what else is in there and run to ProAurum.

Thu, 07/14/2011 - 10:56 | 1456010 Rick Masters
Rick Masters's picture

What are Germany's immigration laws like for well-educated Americans who have a willingness to learn the language?

Thu, 07/14/2011 - 09:21 | 1455637 Commander Cody
Commander Cody's picture

Deleted.

Thu, 07/14/2011 - 09:50 | 1455759 TK7936
TK7936's picture

50 % Haircut coming Greece.

Thu, 07/14/2011 - 10:32 | 1455907 CrashisOptimistic
CrashisOptimistic's picture

Critical item:

German banks found a buyer for their Greek positions.  It was the ECB.

German banks are no longer telling Merkel she must not allow Greek default.

However, the question will now flow to how much of an array of losses by the ECB must be shared by Germany?  

Regardless of all of this, the divestiture of German banks of Greek exposure hugely increases the odds of Greek default.  France's banks and the ECB will oppose it with all their strength, but Germany can refuse funding for any other approach.

Thu, 07/14/2011 - 11:15 | 1456102 Henry Chinaski
Henry Chinaski's picture

Quite telling that (im)POTUS is quoted in the lead article on Drudge as saying:  "I've been doing Afghanistan and bin Laden and the Greek crisis."

There's more to the story if the Greek crisis makes the top three list of his priorities. 

http://www.telegraph.co.uk/news/worldnews/barackobama/8636645/Barack-No-...

Thu, 07/14/2011 - 11:17 | 1456116 Henry Chinaski
Henry Chinaski's picture

Oh, I forgot.  He is POTW (President of the world), now.  Disregard my earlier post. [/sarc]

Thu, 07/14/2011 - 13:29 | 1456688 Ned Zeppelin
Ned Zeppelin's picture

All you French banks can go f - - -  yourselves. Choke on your greek debt.

 - Germany

Do NOT follow this link or you will be banned from the site!