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Greece Bailout Rumor

Tyler Durden's picture





 

Submitted by Nic Lenoir of ICAP

There is a rumor of a bailout going around. It is worth watching as the Greece/Germany spread was wider by 17bps on the day again. It may be worth looking at shorting some bunds here, especially given that 10s rejected their 118-10 resistance yesterday in the US.

Good luck trading,

Nic

 


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Thu, 01/28/2010 - 09:02 | Link to Comment ETF-Trader
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Pic?

Thu, 01/28/2010 - 09:07 | Link to Comment SWRichmond
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I love domino theory.  Does this mean UK won't be putting Greece on the terrorist watch list like it did Iceland?

Thu, 01/28/2010 - 11:40 | Link to Comment Problem Is
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"UK won't be putting Greece on the terrorist watch list like it did Iceland?"

If Blair toady and  Uberfuck Gordon Brown doles out Brit tax payer money as political payola to cover uninsured deposits on banks the idiot Darling didn't regulate...

Then extorts Greece into paying Brown for his political payola the way he did Iceland...

And if Greek voters flip Brown the bird he so richly deserved...

Then yes Uberfuck Brown would put Greece on the terrorist watch list...

ESPECIALLY if putting Iceland on the terrorist watch list gave Brown a bump in the polls... Where do you think US politicians learned to be such disingenuous worms? From the mother country...

"Tony Blair can't be a war criminal... he listens to Oasis!"
   Rob Newman

Thu, 01/28/2010 - 11:57 | Link to Comment Busy-Body
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Can anyone shed any light on the recent machinations for the Iceland referendum?  Thanks in advance.

Fri, 01/29/2010 - 01:03 | Link to Comment Hephasteus
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Oh they got their sociopaths locked down pretty good over there. You should see a wonderful analysis of Tony Blair completely faking emotional reactions at princess diana's funeral.

Thu, 01/28/2010 - 09:07 | Link to Comment dan22
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bond yields of the rest of the PIIGS (Portugal, Ireland, Italy, Greece and Spain) have been rising steadily over the past month since a default of Greece will imply that they do not have an implicit guarantee on behalf of Germany, just like the collapse of Lehman Brothers took down the bonds of major banks around the world in September of 08.
http://israelfinancialexpert.blogspot.com/2010/01/when-will-euro-collapse.html

Thu, 01/28/2010 - 09:12 | Link to Comment THE DORK OF CORK
THE DORK OF CORK's picture

So Ireland has made savage cuts in the interest of the ..........Greeks

If they called the Germans bluff their politicians must be great poker players.

Thu, 01/28/2010 - 09:15 | Link to Comment taraxias
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The Greeks are not the Irish. Tough austerity measures would have been met with riots in the streets. Brussels knows that.

Thu, 01/28/2010 - 09:13 | Link to Comment Daedal
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Who's going to bail Greece out? Turkey? Spain? LoL.

Thu, 01/28/2010 - 10:18 | Link to Comment curbyourrisk
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Bernanke and his boss.  The guys with all the money.   CHINA

Thu, 01/28/2010 - 11:12 | Link to Comment bugs_
bugs_'s picture

One thing is for damn sure it will not be the Euros.

While politically it must ostensibly come from

there it will be indirectly funded by mom&pop.

Thu, 01/28/2010 - 09:20 | Link to Comment Missing_Link
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I call BS.  Nobody's going to bail Greece out because they know there's a bailout line forming, and the moment they bail out Greece the line forms in front of whoever bailed them out.

Thu, 01/28/2010 - 09:29 | Link to Comment Anonymous
Thu, 01/28/2010 - 09:28 | Link to Comment poydras
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Agreed.  Germany is unlikely to sign up for a bailout.  The prescription for deadbeat nations is devaluation and austerity.

Thu, 01/28/2010 - 09:30 | Link to Comment Anonymous
Thu, 01/28/2010 - 09:32 | Link to Comment 10044
10044's picture

You never know, china might sell dollars to buy euros for greece, possibility

Thu, 01/28/2010 - 09:33 | Link to Comment asdf
Thu, 01/28/2010 - 10:06 | Link to Comment Gilgamesh
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French official denies, also.

Thu, 01/28/2010 - 09:38 | Link to Comment Grouch
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German MoF have already denied this on newswires

Thu, 01/28/2010 - 09:49 | Link to Comment Anonymous
Thu, 01/28/2010 - 09:52 | Link to Comment heatbarrier
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Europe Lays Plans for How to Bail Out Greece-NYT

The mechanism of any bailout would be complex since there is doubt as to whether the EU’s governing treaty permits such aid.

The question of whether the International Monetary Fund might become involved in a bailout appears to have divided euro-area governments. Some countries would prefer to see a regional resolution, while others see no problem in working with the supranational lender.

http://www.nytimes.com/2010/01/29/business/global/29bailout.html

I bet IMF.

Thu, 01/28/2010 - 09:58 | Link to Comment plongka10
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i bet China.

Thu, 01/28/2010 - 10:33 | Link to Comment heatbarrier
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China Shouldn’t Rescue Greece by Buying Debt, Yu Says

“Let European governments and the European Central Bank rescue Greece.”

“China should avoid government bonds that offer high interest rates like that of Greece’s, as safety should be the first concern,” said Lu Ting, a Hong Kong-based economist with Bank of America-Merrill Lynch. China should favor debt of countries with a better economic situation such as Germany and leave bailouts to the International Monetary Fund, he said.

http://www.bloomberg.com/apps/news?pid=20601080&sid=a0qFe2Y.5GEI

Thu, 01/28/2010 - 12:20 | Link to Comment Art Vandelay
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"China should avoid government bonds that offer high interest rates like that of Greece's, as safety should be the first concern." So, what we're going to do, is buy more U.S. Treasuries, which are not only unsafe, but low yielding as well.

Thu, 01/28/2010 - 10:22 | Link to Comment Anonymous
Thu, 01/28/2010 - 11:01 | Link to Comment Anonymous
Thu, 01/28/2010 - 11:24 | Link to Comment bokapita
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100% correct. The mechanism will be various banks buy the Greek bonds and receive a guarantee on the old boy network that if push comes to shov ethey will be repaid by their national governments.

Business as usual in the core Euro states.

Thu, 01/28/2010 - 11:44 | Link to Comment Anonymous
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