Goldman's Take On The Greek Bailout: The Lawsuits Are A-coming

Tyler Durden's picture

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marginnayan's picture

Futs up nicely. It looks like a done deal, then.

Check this one though:

German MOF: Euro Zone's Plan For Greece Not A Decision To Give Aid


orange juice's picture

But it's not a done deal. While they try to settle the balances this year, but it still remains that they're 250% over acceptable spending according to Eurozone rules.  Further austerity will be required; even E. Neilson recongnizes that.  What happens in a few months isn't of real concern, what happens in two years or three years as further cuts have to be made is of more consequence.

All in all this bought the Greeks time and nothing more. What they do with the time is far more important. It's like money in escrow, if the parties putting the money up don't like what they see they can pull out too (also outlined above).

caconhma's picture

<Both the EUR30bn in bilateral money would have to be approved in the legislatures in each of the Euro-zone’s member states before it could be disbursed (and its not clear how long time this would take)>

This sentence puts the entire Greece bailout process in limbo since national approvals can go forever.

However, one thing is for sure: EU members are unable of handle the reality.

Hansel's picture

Greece bailout announcement #4+, and still no actual commitment of money.  Same shit, different Sunday.  They might have the Greece thing sorted out just in time for 12 other debt bombs to go off.

mezcal's picture

Exactly. This is just a ramping up of the jawboning.

Cash? Hah!

They got nothing and I believe Mr. Market is gonna call the bluff.

GoldmanSux's picture

Extent and pretend is THE policy of western industrialized nations. EU loans will be rolled into IMF loans a year or so hence. Bernanke's quote of throwing money out of helicopters was no joke. This is the policy. The die is cast. The sweeping arrogance of this policy continues to amaze. It is worldwide. And it won't work.

MsCreant's picture

I don't know how any one can balance their books anymore. If you pretend to trust my collateral, I'll pretend to trust yours. Tee hee. It's all fun and games, no consequences at all.

Ba-ba-benny and the [ink] jets!!

Give me another hit Ben, I'm kinda low.

Here PIIGSY PIIGSY. Sooooooweeeee!

Line those pigs up at the trough. Here comes the chopper.

Slop! Eeeew! It's all slimy and keeps sticking to us. And sticking and sticking. They keep sticking it to us. Whaaaaah!


Iceland rocks, "volcanically" that is. No PIIGS there. "Just say no to banksters." Hope they don't get handed something they voted down as a done deal.

Sorry for the word salad, sorta. You know that's how some folks talk when they are going--CRAZYYYY!!! Bwha ha ha ha!

Cookie's picture

Thanks for the laugh from Thailand...we need it here!!

Gold...Bitches's picture

Better yet, you take this crap that is worth about a nickel on the dollar, but you'll pay me 1:1.  Then with real cash on the books, I report my finances, then, after the regulators go away, I trade you back the cash for my trash.

RichardENixon's picture

Hey keep that idea under your hat, next thing you know everybody will be trying it.

Gold...Bitches's picture

Balance the books?  That's, just, so 90's.  You balance your own books, I'm gonna break out one of these for my debts (ok, I admit, I got the idea from Ben):

Gold...Bitches's picture

I jest though as I have zero debt.  Apparently I missed the bandwagon over the last couple decades of going into debt for stuff.

RichardENixon's picture

How could you have known the taxpayer would get stuck with the debt for the stuff? 

Cheeky Bastard's picture

You've lost your shit from all this insanity.

Me likes *douchebag-grin-on-face*

nonclaim's picture

Extent and pretend is THE policy of western industrialized nations.

It is. In the first rounds of the liquidity crisis there was a G-20 meeting where they agreed to provide coordinated liquidity intra and inter countries.

To my understanding there was no significant mop-up since, which means we are still in full-blown liquidity crisis. Now, on top and because of that, we are heading into a monetary confidence crisis.

GoldSilverDoc's picture

The New European Community Anthem:


Apologies to Billy Joel (Good Night Saigon)

Sucks_to_be_Smart's picture

can someone please explain the importance of Trichet's comments regarding the collateral system at the ECB and how this can affect Greece?  I'm not getting it.  Thanks everybody!

FischerBlack's picture

30 billion euros? And they think the mere promise of such a paltry sum will be enough to solve Greek's rollover problems? Paulsen and Bernanke promised our banks $700 billion, and not even that promise was enough, they actually had to use it. When Europe actually does disburse these funds (and they *will* disburse them or watch Greece blow up), methinks they won't be seeing it back for a very long time, if ever.

MsCreant's picture

Feels so AIGish, doesn't it?

aus_punter's picture

FB - with all due respect you are stating the obvious here. The 30 bn lets them roll till Q3 and then they roll longer and longer hoping the problem goes away.  Of course they are unlikely to ever repay the money but a lot can happen in between then and now.

Number 156's picture

Yeah, that alone will steepen the yield curve.


1fortheroad's picture

German MOF: Euro Zone's Plan For Greece Not A Decision To Give Aid

BERLIN -(Dow Jones)- The euro zone's agreement Sunday about details on an aid plan for Greece must not be misunderstood as an actual decision to provide aid, but it does justify hopes that the country will be able to refinance its debt on its own, the German Finance Ministry said Sunday.

"This decision today was no decision on aid for Greece," Finance Ministry spokesman Michael Offer told Dow Jones Newswires. 


I guess that means pigs can fly.

Gold...Bitches's picture

or Greece could be a Tupolev 154 that still has to come in for a landing without clipping the trees.

JR's picture

I knew it, I knew it, I knew it!

JR's picture

Everything's coming up magnolias and cherry blossoms abroad, I see, for the Goldman boys. Whatever "Goldman's take on the Greek bailout," it's sure to be big.

Well, it’s good to be both a participant and an instigator, on all the ways up and all the ways down. 

And here’s the news at home that Goldman forgot (leading role by JP Morgan; bit part by Goldman).

From Nathan’s Economic Edge:

Matt Taibbi with Max Keiser – The Crimes of Jefferson County (video)

Zoom the video ahead to the 11.10 minute point to hear Matt Taibbi talk about his investigation into Jefferson County, Alabama.

What occurred there with the investment banks (JPM) was nothing short of the breakdown of the rule of law instigated by the same organizations who are basically running this country.  This is a terrific example of the type of project that a State Chartered Bank could finance forcing out the criminals who prey on municipalities like Jefferson County.  Again, the lesson to learn is that WHO controls the money is far more important than WHAT backs it.

Send the central bankers packing…FIRE THE FED. Here's the video:

williambanzai7's picture

To cause the head to appear in a mass of flame make use of the following: mix together thoroughly petroleum, lard, mutton tallow and quick lime. Distill this over a charcoal fire, and the liquid which results can be burned on the face without harm.

Harry Houdini

Grand Supercycle's picture


The bear market rally wants to continue for a bit longer ... 

DOW/SP500 daily bull signals from Friday 9 April continue.

vote_libertarian_party's picture

So there are no conditions on these loans???  Spend at will???

chindit13's picture

"As agreed earlier, the all Euro-zone governments will participate in a ratio equivalent to their capital share in the ECB."

And when Spain and Italy come a-calling for money, will Greece participate in that bailout "in a ratio equivalent to their capital share in the ECB"?

This is merely a Repo 105 on a continental scale. 

John McCloy's picture

This is nonsense. This would be similar to Paul the lazy alchoholic down the block owing me and 4 neighbors 500 bucks each and lending Paul more money to pay ourselves back. How this is interpreted as a good thing is beyond me. It does however prevent me from getting yelled at by my wife for 3 months for being stupid enough to lend Paul money in the first place. As long as I do not tell her he paid us with more of our own money smooth sailing for me. 

We have truly crossed over into imaginationland. 

Jo's picture

S'funny to read the GS thing above.

Bailouts seem to be the most normal thing in the world nowadays.

exportbank's picture

People simply can't hate their kids and grand-kids this much. The plan must be a western-world repudiation of debt. No person (with any character at all) would expect future generations to pay this off - so default or HUGE inflation is the only cure.


Also - this GS piece could have edited to one page - 

QQQBall's picture

Huge inflation = defacto default