This page has been archived and commenting is disabled.

Greece Back In Spotlight With Spreads Surging After Latest Bank Of Greece Report Shows Major Contraction

Tyler Durden's picture




 

Remember all those lies about how the Greek economy was going to grow and stuff? Here is the truth: the latest Bank of Greece report shows Greek GDP to shrink about 4% this year and unemployment to exceed 12%. And it is enough to blow Greek spreads out by 25 bps and growing. Below are the summary points from the report which is the first step to uncovering the true devastation sweeping the country. Elsewhere, Kathimerini reported that delays in the collection of taxes in Greece may cause a EUR 900mln shortfall in 2010 causing further widening in spreads.

From the report:

  • Greek economy to shrink less intensively in 2011.
  • Greece has no room for further tax increases.
  • Eurostat Greek deficit revision may affect 2010.
  • Greek fiscal adjustment must focus on spending curbs.
  • Greece has long and hard road ahead.
  • Greek banks must maintain high capital adequacy.

At last check, Greek spreads were at 715 bps, +25 on the day.

We are now convinced Greece will be the sacrificial lamb to restart the European crisis and to resume the EUR's slide back to parity with the dollar. Such is life when one's central bank is unable to print $4 trillion due to actual resistance to the tyrrany of a few not so good ad bankers.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 10/26/2010 - 08:06 | 677169 T Rex
T Rex's picture

Oink

Tue, 10/26/2010 - 09:52 | 677391 mikla
mikla's picture

+1  HAHAHAHAHAAAA!

Tue, 10/26/2010 - 11:41 | 677758 Don Smith
Don Smith's picture

Damn that is one seerzly effed up photo.  Spot on.

Tue, 10/26/2010 - 08:08 | 677174 Goldenballs
Goldenballs's picture

Bankers not doing as they are told,unbelievable !!! so far fetched its like American Banks making huge losses but paying out more than the loss in bonuses,cant believe such things would happen in never,never land.

Tue, 10/26/2010 - 08:12 | 677179 alexwest
alexwest's picture

Leo , O Brother, Where Art Thou... ???

any comments

alx

Tue, 10/26/2010 - 08:13 | 677180 LadyH
LadyH's picture

Somewhere in Athens, Merkel consoles a despondent Greek PM by phone, "Nevermind, just you enjoy that seven series when it gets there, we got you an M works edition you know"

Tue, 10/26/2010 - 08:21 | 677190 mohadiep
mohadiep's picture

So what's the news? Does anyone realy expect the EUR weakens against the Dollar because Greek economy weakens?

After all, nice try

Tue, 10/26/2010 - 08:24 | 677195 Quintus
Quintus's picture

Yes.  Already happening.

Tue, 10/26/2010 - 08:23 | 677191 Dismal Scientist
Dismal Scientist's picture

Looks like more Greek islands will be sold off to the Germans before this one's all over. In fact, I wouldn't be surprised if the Squid is working on securitising the Aegean Sea already.

Tue, 10/26/2010 - 08:24 | 677197 Kina
Kina's picture

When the balloon is sinking you have to throw ballast overboard. Sorry Greece, you first.

Tue, 10/26/2010 - 08:30 | 677200 youngman
youngman's picture

They will default...but only after getting as much money from the rest of us.....and unfortunatly..we will give it to them...

Tue, 10/26/2010 - 08:31 | 677202 Plainview
Plainview's picture

A serious problem with Greece being dumped out of the Euro is a geopolitical one, just take a quick look at Greece on a map and its pretty obvious that the EU needs to keep them on side.

Tue, 10/26/2010 - 08:37 | 677212 trav7777
trav7777's picture

Greek CDSs are the short of the year.  China will mop up all their debt to devalue CNYEUR.

Tue, 10/26/2010 - 08:42 | 677219 THE DORK OF CORK
THE DORK OF CORK's picture

There would be nothing wrong with the ECB printing money to keep essential services open if they sequentially destroyed the parasitic shadow banking sector.

But of course their primary objective is to protect their clients revenue stream.

Tue, 10/26/2010 - 08:43 | 677220 THE DORK OF CORK
THE DORK OF CORK's picture

deleted

Tue, 10/26/2010 - 10:55 | 677620 Treason Season
Treason Season's picture

OT I've been meaning to ask you Mr Dork. Could you recommend any blogs or forums dealing with the effects of the GFC on the Irish? I don't mean economics ones but ones dealing with the daily gristle of present day life there i.e, prices, rents, stress and struggles etc Cheers in advance.

Tue, 10/26/2010 - 11:38 | 677752 THE DORK OF CORK
THE DORK OF CORK's picture

NAMA wine lake is one of the best economic / political investigative sites - as for forums on day to day stuff - well I do not need access to a computer to figure that out - most of the sedition begins in a Pub here and we generally have too much drink to remember what we have said - however if we do run out of money for drink things might turn nasty.

JByeats runs a excellent youtube channel where you can get a feel for events - they are planning massive serf killing austerity here to bail out the banks external bonds and prevent a Gold run on the Euro as although we are a small country we have over a trillion in external debt owed to London and the Continent.

www.youtube.com/user/jbyeats  

 

Tue, 10/26/2010 - 09:17 | 677295 MarketTruth
MarketTruth's picture

And if the USA had HONEST reporting on UE, GDP, etc the numbers would be...

Think about it.

Tue, 10/26/2010 - 09:29 | 677314 aurum
aurum's picture

If jim willie is right this is another orchestrated move by china to dump treasuries into euros via greek prop up bond purchases

Tue, 10/26/2010 - 10:01 | 677437 Goldenballs
Goldenballs's picture

Becoming one of the toilets of Europe,wonder how many black holes are being filled with debt from other countries just to get it off the books,must be a central banks dream to have a country in such bad shape to ship off all your rubbish to before you shut them down.

Tue, 10/26/2010 - 10:08 | 677463 Josephine29
Josephine29's picture

Please keep up Bank of Greece I was reading about this on the nineteenth of this month in an article  entitled "The official view is that Greece's fiscal situation is improving whilst I feel she is getting ever more insolvent" on notayesmanseconomics.

http://t.co/IptSK4t

Tue, 10/26/2010 - 10:24 | 677512 MacedonianGlory
MacedonianGlory's picture

Last night Papandreou was interviewed on national broadcast from all major TV stations. It was a total fiasco. Papandreou tried to threaten Greeks and blackmailed their vote on the elections of November 7th.

IMF's Stross Can (socialist) and Papandreou's (socialist) and ECB's Trichet (socialist) programm is a total failure.

Greeks are going to vote against this Socialist crap that reduced their standarts of living.

Socialists cause a GENOCIDE in Greece.

Tue, 10/26/2010 - 10:54 | 677618 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Greece, just default already! You can only pretend you are solvent to your creditors for sooooooo long.

Tue, 10/26/2010 - 11:56 | 677806 MacedonianGlory
MacedonianGlory's picture

What you call default is the result of Papandreou's Socialist politics along with his Socialists companions in IMF and ECB.

His blackmail for the upcoming disapprovement in the elections on November is going to be rejected by the Greeks.

After all Papandreou is the one who blackmails all the world using the default as a threat so that he stays in power.

Beware of the Greeks.........Papandreou et al Socialists on the upcoming elections.

We have solution and we have alternatives

Tue, 10/26/2010 - 11:37 | 677619 aka_ces
aka_ces's picture

"Greece back in Spotlight" ? I don't want no stinkin' PIGS-greecebacks.  

Tue, 10/26/2010 - 11:32 | 677738 Gimp
Gimp's picture

Great coverage of Greece on the American media/propaganda machine...not.

I guess we can't handle the truth. Thanks for ZH and other internet blogs.

Wed, 11/03/2010 - 21:32 | 697990 cheap uggs for sale
cheap uggs for sale's picture

We have all cheap uggs for sale in our website http://www.salesuggs.org ! You can meet all your needs for UGG hot sale here and will certainly be satisfied with the top quality at low price. All UGGs on sale are made with the 100% genuine sheepskin from Australia and are hand-made in our own factory completely. So you need no to worry about the quality and the cheap UGGs for sale are all to be delivered in free shipping. Enjoy the large discount!
1.
UGG Amberlee
|UGG Kensington
|UGG Elsey
|UGG Langley
|UGG Roxy Short
|UGG Roseberry
|UGG Oliviya
|UGG Raya
UGG Brookfield Short

Tue, 11/09/2010 - 04:28 | 711153 shaoye
shaoye's picture

Find ugg and Australian sheepskinAuthentic Ugg boots, learn the history behind the Cheap ugg boots, and when and what to wear with Ugg boot, as well as cleaning and caring for ....we sell new style Ugg boots on sale,You can find the wholesale discount Ugg boots here.

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