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Greece Gets Triple Hooked: S&P Downgrades Country To CCC, Outlook Negative

Tyler Durden's picture


And there goes the EUR again. Furthermore, "Outlook Negative" on CCC means CC is next, then C, and lastly, D.


  • In our view Greece is increasingly likely to restructure its debt in a manner that, under the conditions of any package of additional funding provided by Greece's official creditors, would result in one or more defaults under our criteria.
  • We are also of the view that risks for the implementation of Greece's EU/IMF borrowing program are rising, given Greece's increased financing needs and ongoing internal political disagreements surrounding the policy conditions required by Greece's partners.
  • Accordingly, we have lowered Greece's long-term rating to 'CCC', while affirming its 'C' short-term rating and removing the ratings from CreditWatch. The outlook is negative.
  • The 'AAA' transfer and convertibility assessment for Greece, which applies to all members of the eurozone, is unchanged.
  • Our recovery rating of '4' for Greece also remains unchanged, indicating an estimated 30%-50% recovery of principal by bondholders. We have revised our recovery rating base case default scenario for Greece to incorporate two hypothetical restructurings: an extension of maturities, followed by principal "haircuts".

Rating Action

On June 13, 2011, Standard & Poor's Ratings Services lowered its long-term sovereign credit ratings on Greece to 'CCC' from 'B'. The short-term rating was affirmed at 'C'. The ratings were removed from CreditWatch. The outlook on the long-term ratings is negative.

Standard & Poor's '4' recovery rating for Greece remains unchanged--indicating an estimated 30%-50% recovery upon default--and its 'AAA' transfer and convertibility assessment for Greece, which applies to all members of the eurozone, also remains unchanged.


The downgrade reflects our view that there is a significantly higher likelihood of one or more defaults, as defined by our criteria relating to
full and timely payment, linked to efforts by official creditors to close an emerging financing gap in Greece. This financing gap has emerged in part because Greece's access to market financing in 2012 and possibly beyond, as envisaged in the current official EU/IMF program, is unlikely to materialize.

This lack of access, in our view, creates a gap between committed official financing and Greece's projected financing requirements. Greece has heavy near-term financing requirements, with approximately €95 billion of Greek government debt maturing between now and the end of 2013 along with an additional €58 billion maturing in 2014.

Moreover, the downgrade reflects our view that implementation risks associated with the EU/IMF program are rising, given the increasingly complicated political environment in Greece coupled with its current difficult economic climate.

In Standard & Poor's May 9, 2011 press release on Greece, we stated that we could lower our long-term rating further if we concluded that risk of a distressed debt exchange had increased. While we believe that official eurozone creditors are likely to provide additional funding to help close the emerging financing gap, based on recent statements made by the German government ahead of the June 20, 2011 Eurogroup meeting, we believe some official creditors will see restructuring of commercial debt as a necessary condition to such additional funding. We believe that private sector burden sharing could take the form of a debt exchange offer or an extension of debt maturities. In our view, any such transactions would likely be on terms less favorable than the debt being refinanced, which we, in turn, would view as a de facto default according to Standard & Poor's published criteria. In that event, under our criteria, this would result in the rating on the affected instruments being lowered to 'D,' while Greece's credit rating would be lowered to 'SD'(selective default). We are also of the view that, even if official creditors do not adopt this approach at the next Eurogroup meeting, the likelihood of such an action over the next year has increased materially.

In our view, the continuing recession in Greece (with unemployment rising to 16.2% in March 2011, up from 11.6% in March 2010) partly explains the weaker-than-planned budgetary performance so far this year, which has yet to be addressed by the Greek government. We believe that this slippage is also to some extent due to the absence of broad political consensus supporting additional budgetary adjustments. As a result, we think that the execution risks of Greece's EU/IMF borrowing program have increased. We still expect that the Greek government will work to achieve this year's budgetary targets and start implementing the revised medium-term program agreed to with official creditors. However, we also believe that the recession could well persist into 2012 and thus may further erode internal political support for the revised EU/IMF program.

While we have lowered our long-term ratings on Greece to 'CCC', we have maintained a recovery rating of '4,' reflecting our estimation of "average" (30%-50%) recovery for holders of Greek government debt in case of default. However, we have revised our rating recovery base case default scenario for Greece to incorporate two hypothetical debt restructurings: the first (possibly occurring within the next 12 months as implied by the 'CCC' long-term rating), featuring an effective extension of Greece's debt maturities; followed by a second hypothetical restructuring (possibly occurring by 2013), incorporating principal "haircuts" with the aim of placing Greece's public debt burden, which by our estimate could then exceed 160% of GDP, on what the government and its official creditors might consider to be a more sustainable footing.


Greece's 'CCC' long-term credit rating reflects Standard & Poor's view that the risk of default under our criteria for full and timely payment within the next 12 months has increased significantly. Our negative outlook indicates that a downgrade to 'SD' could occur if Greece undertakes one or more debt restructurings or maturity extensions on terms that constitute distressed debt exchanges as defined by our criteria.

Conversely, if Greece's eurozone partners agree on a revised EU/IMF program that does not result in a default under our criteria for full and timely
payment and the revised EU/IMF program is complied with, our ratings on Greece could stabilize at the current 'CCC' levels, even taking into account the risk of a debt restructuring in the form of a principal "haircut" by 2013.


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Mon, 06/13/2011 - 12:28 | 1365026 toto
toto's picture

What was  America's rating again?

Mon, 06/13/2011 - 12:56 | 1365119 SheepDog-One
SheepDog-One's picture

C++ I think.

Mon, 06/13/2011 - 12:57 | 1365122 Bob
Bob's picture

True, but there's still abundant hope that the sheeple here will enthusiastically surrender to "austerity."  Greece, not so much. 

Mon, 06/13/2011 - 13:11 | 1365150 SheepDog-One
SheepDog-One's picture

Theres about 100 million americans with rifles and a lot of ammo...I think they may be baking in 'austerity and surrender of the american people' a bit too soon.

Mon, 06/13/2011 - 13:55 | 1365183 Bob
Bob's picture

It's looking like the DC Clown Show will get it done "for them."  Dims blame Publicons, Barry blames "Mr. Market (Sir!)" and they'll all be so sad it "had" to be done . . .

But I agree it won't end well. 

Too bad taxing banksters into the stone age--since they're too well-connected to jail--isn't on the table.  We could be looking at very different prospects. 

Mon, 06/13/2011 - 12:32 | 1365030 agent default
agent default's picture

And whacks silver and commodities.  Another day in paradise I suppose.

Mon, 06/13/2011 - 12:29 | 1365032 RobotTrader
RobotTrader's picture


Sovereign Debt problems re-emerge


Sell gold, buy dollars and Uncle Gorilla paper!!!

Mon, 06/13/2011 - 12:31 | 1365039 achmachat
achmachat's picture

is this what you are observing, or is this what you personally do and would advise to poeple listening to you.

Sorry if I ask.. but with you, one never knows.

Mon, 06/13/2011 - 15:03 | 1365515 Bay of Pigs
Bay of Pigs's picture

He's a fucking tool and a bold faced liar. 

Mon, 06/13/2011 - 12:32 | 1365045 SheepDog-One
SheepDog-One's picture

Should be an IDEAL trade for you Robo, since all youve ever done is trade ON PAPER anyway!

Mon, 06/13/2011 - 12:38 | 1365065 chrisd
chrisd's picture

You were more fun when you posted pictures like your avatar all day

Mon, 06/13/2011 - 12:38 | 1365072 SheepDog-One
SheepDog-One's picture

Yea at least the pictures were some entertainment, now Robo just talks out of his ass all day about his paper trades.

Mon, 06/13/2011 - 12:43 | 1365078 Goofy Bastard
Goofy Bastard's picture

I don't get the junks, it's clearly happening.  Not saying it makes true sense in the long-term, but it is happening.

Mon, 06/13/2011 - 12:43 | 1365087 SheepDog-One
SheepDog-One's picture

You want to sell gold and buy dollars? Go for it.

Mon, 06/13/2011 - 14:43 | 1365464 Goofy Bastard
Goofy Bastard's picture

For someone nimble, that appears the be the short-term move.  I'd certainly be re-positioning back into Gold/Silver/Commodities after Helicopter Ben comes to the rescue.


It's one profitable way to play this.  If you're nimble...

Mon, 06/13/2011 - 15:08 | 1365536 DoChenRollingBearing
DoChenRollingBearing's picture

I am not nimble.  So I just buy and hold physical (only) PMs.

Mon, 06/13/2011 - 13:25 | 1365204 topcallingtroll
topcallingtroll's picture

Dammit robo, you make getting junks look so easy.

Mon, 06/13/2011 - 15:02 | 1365517 Urban Redneck
Urban Redneck's picture

The lack of significant lasting rise in EURUSD must be causing many of TPTB to smack their monitors like sexually frustrated adolescents over the past few months.  Perhaps the End-of-QE® Viagra is losing its efficacy, or is perhaps that the rest of the world has awoken to the fact that - if the whole thing is gonna blow and wipe everyone out, they really don't want spend their last days in this monetary realm in coitus with the bearded one?

Mon, 06/13/2011 - 12:35 | 1365043 Jack Mehoff
Jack Mehoff's picture

Should have been D for default.

Mon, 06/13/2011 - 12:31 | 1365046 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

They are on top of downgrading sovereign debt but could not see the housing crisis coming from a mile away.  What an agenda.

Mon, 06/13/2011 - 12:47 | 1365097 SheepDog-One
SheepDog-One's picture

Good point, theyre expert at downgrading foreigners, but clean flat out missed the biggest bubble implosion in history.

Mon, 06/13/2011 - 13:04 | 1365140 Bob
Bob's picture

Agenda indeed. 

Mon, 06/13/2011 - 12:35 | 1365048 Seasmoke
Seasmoke's picture

coming to a country near you

Mon, 06/13/2011 - 12:32 | 1365051 JonTurk
JonTurk's picture

Tyler, last week you were calling a breakout of 1.50 in EURUSD


you are slowly becoming like a Goldman Muppetshow

Mon, 06/13/2011 - 12:49 | 1365090 Tyler Durden
Tyler Durden's picture

Well that is certainly news to us. With the S&P correlating to the EURUSD 1:1, and with our expectation that the S&P will drop several hundred points before QE3 is unleashed, can you explain just where in this logical chain does the EURUSD hit 1.50 before QE3 is launched? (But yes, if the ECB surprisingly hikes rates to 2.0% in July, which it won't, you will certainly see 1.50). Then again we can see why one can be confused especially with Goldman's two parallel calls for EURUSD going above 1.55 and below 1.40 at the same time. Lastly, since ESL is apparently not TFL, here is our most recent commentary on the EUR: "The most recent CFTC Commitment of Traders report is out. As usual the
most interesting data can be found in the FX spec update which does not
disappoint. Just as we predicted, as the EUR surged over the past 14
days so did non-commercial net specs. The number which is through
Tuesday, probably increased even as the EUR got hammered over the past
24 hours, dropping 250 pips in two days. Expect the usual piling out
through the front door as specs bail once again. At that point the time
to buy the EUR will come

So... care to revisit?

Mon, 06/13/2011 - 12:56 | 1365111 SheepDog-One
SheepDog-One's picture

Only part I disagree with is the unleashing of QE3.  When the markets tank this time the 'QE3' much to the surprise of the CNBC audience will be the Treasury suddenly seizing all 401K's and pensions.

What did people think, the central banksters did all this to make sure moms and pops retirement at the luxury 'The Villages' would be fully funded and comfy? They can dream on, 3rd worlding and austerity is about to become harsh reality.

Mon, 06/13/2011 - 13:22 | 1365194 topcallingtroll
topcallingtroll's picture

You have worn your tinfoil hat for so long i believe it has melded into your skin. Might wanna see a doctor.

Mon, 06/13/2011 - 13:42 | 1365249 fuu
fuu's picture

Funny how things that were tinfoil hat worthy a few years ago now play out across the front pages.

Mon, 06/13/2011 - 15:15 | 1365541 DoChenRollingBearing
DoChenRollingBearing's picture

You guys above best not be dissing the Tinfoil Hat Brigade!  New member in The Lunatic Fringe Battalion of the THB is getting ready for action!

Mon, 06/13/2011 - 16:40 | 1365732 Fanakapan
Fanakapan's picture

Arffffffffffffff, I like that :)

Mon, 06/13/2011 - 17:11 | 1365799 Calmyourself
Calmyourself's picture

I used to laugh at such nonsense then more and more start coming true.. Now when I look in the mirror, I think pretty, shiny and sadly so true. No, tinfoil has gone mainstream TCT, don't miss the Alcoa trade..

Mon, 06/13/2011 - 13:26 | 1365197 dwdollar
dwdollar's picture

Well... They have to keep the illusion.  If they do anything with 401K's it will be something that most will swallow as being good for their own selfish desires.  Otherwise, mom and dad stop dreaming and start hating.

Mon, 06/13/2011 - 14:04 | 1365316 Libertarians fo...
Libertarians for Prosperity's picture

can you explain just where in this logical chain does the EURUSD hit 1.50 before QE3 is launched?.....

I think he might have been referring to this Twitter post by one of the "Tylers" although it was not last week, but six weeks ago:!/zerohedge/statuses/62814313685061632

EURUSD 1.4653 1.50 Next

Mon, 06/13/2011 - 14:07 | 1365327 Tyler Durden
Tyler Durden's picture

So a week before it ripped by 300 pips and hit 1.4940?

Mon, 06/13/2011 - 14:17 | 1365358 Libertarians fo...
Libertarians for Prosperity's picture

touche...sort of.  

Because it conflicts with your suggestion today that we need QE3 before the EURUSD can hit 1.50.


Mon, 06/13/2011 - 14:25 | 1365391 Tyler Durden
Tyler Durden's picture

Short Term trades are just that. Trades (especially when late in April the market was working under the false assumption that JCT would proceed to announce several hikes in a row - something we predicted would not happen). There is nothing in the fundamental picture that supports EURUSD at 1.50 currently. Can it hit 2.00 on central bank buying just like in the past 30 minutes? Of course. Will that level be sustained? Of course not.

Mon, 06/13/2011 - 14:50 | 1365486 JonTurk
JonTurk's picture

just take a look at below post on COT where you suggesting "The technicals at this point indicate a break of recent EURUSD resistance in the 1.50 area is very much possible".

I am not trying to make a scene here as everybody can be wrong sometimes in this business, as Soros says: "a sustainable 60/40 success rate makes you a star trader"; but dude, you been spectaculary wrong at criticial junctures: you called 1:1 parity at 1.20 bottom last year and now you are calling a breakout of 1.50 at 1.47 level last week which infact seems like a medium term top.


come on...

Mon, 06/13/2011 - 15:08 | 1365524 Tyler Durden
Tyler Durden's picture

It is certainly very much possible. What's your point? As for parity, instead of making false statements, here is what we said on the topic of parity: "When the ECB said recently that a slide toward parity would be
tantamount to admitting defeat for the euro and the eurozone, we took it
somewhat seriously. Which is why we were rather surprised to see that
the biggest French bank, and by implication, organization which would
suffer massively should the eurozone implode, is out with a EURUSD
forecast that goes even beyond parity, and bottoms out at 0.98 by Q2
2011. As we have noted before,
it is the very same  European banks who are most interested in a
destabilized euro, as it would merely entail trillion after trillion in
ECB bailouts, providing quarterly bonus make whole packets for
all bankers involved. So, without further ado, here is BNP's thesis,
which just as easily could have come from Evans-Pritchard: "Now we are
convinced that EURUSD will have to remain weaker for longer and we
expect it to drift to 0.97 in Q3 2011. The competitive and wealth gap
within EMU will have to be closed to rescue the European project.
Peripheral Europe will be exposed to a significant deflationary shock
and asset transfers from core European countries will be required to
keep these countries and its financial system afloat." It kinda makes us
wonder whether the ECB may have been lying to us all this time."

Google is indeed your friend.

Mon, 06/13/2011 - 12:52 | 1365100 i-dog
i-dog's picture

The week's not over yet........

Mon, 06/13/2011 - 12:36 | 1365052 Ferg .
Ferg .'s picture

Does anyone remember the days when a Greek downgrade was major news ?

Mon, 06/13/2011 - 12:35 | 1365068 SheepDog-One
SheepDog-One's picture

Now the bad news is not news, wait till the ensuing 'Watchoo talkin bout Willis we fixed Greece' then that will be noticed and much rejoicing.

Mon, 06/13/2011 - 12:50 | 1365105 Ferg .
Ferg .'s picture

Quite insane though how downgrades to European sovereigns don't seem to mean shit to the market anymore . 

Mon, 06/13/2011 - 12:53 | 1365114 SheepDog-One
SheepDog-One's picture

Nothin really means shit anymore, we've lurched sideways and going from world economic currency war into world hot shooting war. 

Mon, 06/13/2011 - 12:39 | 1365053 Jack Mehoff
Jack Mehoff's picture

Repost Deleted

Mon, 06/13/2011 - 12:38 | 1365062 JonTurk
JonTurk's picture

after the double dip in Dollar Index, looks like the USD bull train is leaving the station. such a pity for the EUR bulls like Tyler...

Mon, 06/13/2011 - 12:44 | 1365081 SheepDog-One
SheepDog-One's picture

Well why dont you file a complaint and ask for your ZH membership fees to be refunded? Oh thats right, its free, so whiners are also free to take the walk.

Mon, 06/13/2011 - 12:50 | 1365093 JonTurk
JonTurk's picture

It is a free blog so I have a right to make critics here; but as sheeples (especially silver sheeples) like you don't know what a critic is, I say: run sheeple run :)

Mon, 06/13/2011 - 12:47 | 1365098 SheepDog-One
SheepDog-One's picture

Well I say youre a fucking jerkoff how about that?

Mon, 06/13/2011 - 15:16 | 1365555 Bay of Pigs
Bay of Pigs's picture

Yeah, the USD looks real strong.

What are you, some kind of comedian or just plain stupid?


Mon, 06/13/2011 - 13:38 | 1365141 lizzy36
lizzy36's picture

Pic of your P&L or STFU.

Or do you fall into the category of those that "can't do critique"/ (rhetorical).


Mon, 06/13/2011 - 12:35 | 1365067 Jack Mehoff
Jack Mehoff's picture

Should have been D for default.

Mon, 06/13/2011 - 12:40 | 1365070 Dick Darlington
Dick Darlington's picture

Next on S&P's agenda is Belgium. If I remember correctly they have "outlook negative" since mid december 2010 and said the review period is 6 months. Belgium still has no gubbermint in place and that was one of the things S&P mentioned needs to change if Belgium wants to keep their current rating.

Mon, 06/13/2011 - 12:39 | 1365076 Ferg .
Ferg .'s picture

Does anyone remember the days when a Greek downgrade was major news ?

Mon, 06/13/2011 - 12:42 | 1365085 monopoly
monopoly's picture

Looks like we just moved up to DefCon ll Tyler.

Mon, 06/13/2011 - 12:49 | 1365092 monopoly
monopoly's picture

Oh no. The jerks and trolls are back. What a waste these people are.

Mon, 06/13/2011 - 12:46 | 1365095 cougar_w
cougar_w's picture

Hey kids, the word for the day is now "selective default".

Whatever the actual fuck that means.

Use selective default in a complete sentence three times today. And for bonus points, use it in a complete sentence in conversation with a German politician.

See where it gets you.

Mon, 06/13/2011 - 12:53 | 1365115 lizzy36
lizzy36's picture

Semantics are fun.

liability management exercise, reprofiling, soft restructuring, hard restructuring, haircut.......ect.

I will take bankrupt with soverign default and 70% haircuts.

But then i generally believe that the only people that benefit from trying to squeeze a size 12 ass into a size 2 pant are the clothing manufactures who have reprofiled a size 12 ass to a size 2 ass.


Mon, 06/13/2011 - 14:47 | 1365460 nonclaim
nonclaim's picture

Selective means the ones selected and hold by GS and friends will be made whole while everybody else gets a deep haircut. Why? Because if banks would fail and trigger infinite recursion on CDSs that would take the whole world down yadda yadda... so only pension funds will collapse instead.

Mon, 06/13/2011 - 13:19 | 1365185 carbonmutant
carbonmutant's picture

If you Google "selective default" you get a picture of Jean-Claude ranting about Greece...

If NBG defaults but the Greek government doesn't is that "selective" enough?

Mon, 06/13/2011 - 23:40 | 1366842 snowball777
snowball777's picture

partial rape

Mon, 06/13/2011 - 12:48 | 1365101 monopoly
monopoly's picture

Am saving some confetti for a little down the road. Gonna be a great blue light special on the miners. Hope I can time it close to load up the truck.

And, did you guys see the ads for Dodge Rams. Over $50,000 for a freaking truck. Who is stupid enough to pay that and take out a loan to finance it. Amazing.

Mon, 06/13/2011 - 12:56 | 1365112 Temporalist
Temporalist's picture

I'll just take out a HELOC and...oh I don't have a house...

Mon, 06/13/2011 - 13:15 | 1365165 1100-TACTICAL-12
1100-TACTICAL-12's picture

Down here in Tx, there are $50-$70K trucks everywhere.  Working your ass off to make a payment. Not me been there done that..

Mon, 06/13/2011 - 13:32 | 1365218 fuu
fuu's picture

I just picked up a nicely restored 1987 Ford F-150 short bed 4 on the floor 4x4 for under $1200.

Mon, 06/13/2011 - 14:53 | 1365482 cougar_w
cougar_w's picture

My '68 Dog 1-ton PowerWagon runs like a mo'fo. Original 383, hardly burns any oil. Paid $900 cash for it. No computers, no smog, no fuckall.

Full of rust, I wash it once a year. Carries nearly 3 tons in a pinch.

Detroit, you are so screwed.

Mon, 06/13/2011 - 15:19 | 1365554 DoChenRollingBearing
DoChenRollingBearing's picture

Your truck will also be OK if we get an EMP.

One Second After by William Forstchen

Now out in paperback.

Mon, 06/13/2011 - 17:01 | 1365775 fuu
fuu's picture

That was what I was looking for. Something pre-72. But this sort of fell in my lap and I couldn't resist. It was paid for with silver rounds as well so that was just bonus.


Great book too.

Mon, 06/13/2011 - 12:48 | 1365102 EveningInAmerica
EveningInAmerica's picture

We're all junk bond traders now bitchez

Mon, 06/13/2011 - 12:51 | 1365106 Temporalist
Temporalist's picture

At least the IMF has Belarus' in "Would you please remove that debt knife from my back?"

Mon, 06/13/2011 - 13:00 | 1365121 Buyemall
Buyemall's picture

Let's not be to hasty. After CCC there is CCC- .

Mon, 06/13/2011 - 12:57 | 1365123 Missiondweller
Missiondweller's picture

If Germany wants to save the Euro they need to count the number of life rafts and begin to plan realistically. Wasting more time with Greece may buy them time but will make matters worse down the road. Besides, Greece needs to "find their own way" which I believe means default and reset with a newly re-issued Drachma. No it won't be easy, but the sooner they get through the pain the quicker they'll find a sustainable economic system on the other side.

Mon, 06/13/2011 - 13:30 | 1365207 allenaki
allenaki's picture

this is the only way for Greece

Mon, 06/13/2011 - 13:00 | 1365130 r101958
r101958's picture

I'll post this again:

'We (the U.S.) have been redirecting to the Eurozone whenever it suited us. What is more, the three major rating entities are based here. Whenever we wanted money to prop up treasury sales (also causes another couple of desirable bi-products; stronger dollar, weaker PM's (due to deleveraging)) we used S&P, Moody's, and Fitch to downgrade Euro debt. Work(s) like a charm (so far). Look at our states. Our finances are a catastrophe. California dwarfs Greece, but we point our fingers at Greece. We hold all the strings and have been pulling them for a long time. Let's not be surprised when others start pointing fingers back at us.' .....and when they stop buying the BS anymore.

Mon, 06/13/2011 - 13:07 | 1365137 Mallenet
Mallenet's picture

The last time Greeks were successful was when it let Sparta serve up its best to buy time for lazy/cowardly Greeks from getting off their fat behinds: what has changed?

Or was it when they sacked Troy with a gift? What has changed?

Only one thing: back then, no one trusted a Greek baring gifts - now - no one trusts a Greek baring gilts!

Over thousands of years only one thing remains constant: no one trusts Greeks!

Mon, 06/13/2011 - 13:12 | 1365157 allenaki
allenaki's picture

you should polish your historical knowledge, it's stuck in the middle ages

Mon, 06/13/2011 - 13:05 | 1365144 allenaki
allenaki's picture

Also urgent Eurogroup calling tomorrow

rumours that Papaki has resigned.

Papaki attends Bilderberg meeting.

(Papaki means @, FinMin)

Mon, 06/13/2011 - 13:29 | 1365205 Buyemall
Buyemall's picture

rumor like?

Mon, 06/13/2011 - 14:03 | 1365313 allenaki
allenaki's picture


who knows, PM has asked Banskters to take over the FinMin job but they rejected the offer!

Mon, 06/13/2011 - 13:12 | 1365156 RobotTrader
RobotTrader's picture

Wow, gold and oil getting pounded....

Mon, 06/13/2011 - 13:09 | 1365159 redpill
redpill's picture

Kind of like your mother when the pool boy visits.

Mon, 06/13/2011 - 13:39 | 1365254 fuu
fuu's picture


Mon, 06/13/2011 - 13:16 | 1365166 Jack Burden
Jack Burden's picture

Keep in mind this notion of value loss as a precondition for a credit event. This sets the table and increases pressure to enhance what bondholders receive in the refi, so that bondholders have leverage to demand collateral under the pretense a better credit position will avoid default. More fear mongering to provide cover for the political class as they strip assets. Of course this is nothing more than a fraudulent conveyance that wouldn't stand up in our own US court system, but that's a topic for another day.

Mon, 06/13/2011 - 13:16 | 1365167 Oh regional Indian
Oh regional Indian's picture

Well well well, take a look at what this has done to the Au/Ag complex.

Managed volatility to the downside, anyone? So the EUR and PM's are correlated, as they are individually to the Dollar (inversely on the dollar side of course). Interesting. I wish I was a model maker. Some of this stuff seems easy to crack.


Mon, 06/13/2011 - 13:16 | 1365168 GloriousBastrd
GloriousBastrd's picture

Greece to the Euro reminds me of Achilles - a great warrior brought down by his seemingly inconsequential part.  And especially ironic, since Achilles was Greek. 

Mon, 06/13/2011 - 13:39 | 1365252 Zing
Zing's picture


Mon, 06/13/2011 - 16:53 | 1365769 Fanakapan
Fanakapan's picture

I dont know, a Turk told me once that the Hellenes you are thinking of, have over the years been replaced with an influx of mostly Albanians. 

Mon, 06/13/2011 - 13:13 | 1365169 allenaki
allenaki's picture

photos in

(meaning anti-nwo)

video of people, women, children and seniors moving spontaneously towards the side gate of the parliament:

Mon, 06/13/2011 - 13:16 | 1365177 topcallingtroll
topcallingtroll's picture

Spot on.

The governments in the EU are not willing to subsidize greece forever, and yet there is no prospect of private financing.

That is a huge gap in the plan, if there ever was a plan.

Mon, 06/13/2011 - 13:19 | 1365187 Instant Wealth
Instant Wealth's picture
Nothing so needs reforming as other people's habits.
Mon, 06/13/2011 - 13:24 | 1365201 Herne the Hunter
Herne the Hunter's picture

I read the headline as  "Greece gets nipple hooked"... ouch

Mon, 06/13/2011 - 13:38 | 1365245 allenaki
allenaki's picture

Greeks begin to mass sue the politicians of the government party.
The number of suicides has been doubled compared to last year
( also high numbers)

Mon, 06/13/2011 - 13:47 | 1365246 PulauHantu29
PulauHantu29's picture

How about nationalizing the Greek banks? I have not heard anyone mention that? Roubini says to cut Greece loose ..does that mean the same thing as nationalizing the banks there?

Mon, 06/13/2011 - 13:49 | 1365282 allenaki
allenaki's picture

Lots of people and organizations wish this.

But the gov'nment is rescueing the banks.

The whole of the first package 110 bn. euro goes to a former loan (SOVEREIGN BOND), taken in 1964.

And that again (of 1964) was the end of another PERPETUAL LOAN taken in 1889, which in turn led to a war.


Mon, 06/13/2011 - 13:58 | 1365298 PulauHantu29
PulauHantu29's picture

Thanks for the explanation. Here is a good article about who holds the Greek debt also from Business Insider:

Why, oh why, are banks putting American taxpayers at risk, as these too-big-to-fail banks certainly are? And make no mistake, if several major banks were to collapse, our government would need to step in. The largest banks are too big for the FDIC to handle. Now, shareholders would be wiped out this time and bond holders would face haircuts. No question. But why are investment banks allowed to mix the risk with their commercial banks?

Read more:


Mon, 06/13/2011 - 13:57 | 1365306 allenaki
allenaki's picture

Because of eliminating the Glass-Steagall Act

Mon, 06/13/2011 - 14:11 | 1365346 allenaki
allenaki's picture

Regarding Drachma:

With Euro Greece died within 8 years, in Drachma for 200 years Greece has always survived with some impressive results from time to time,
and at least it can print it's money

If they pass the Second Austerity Plan until the 28th of June, there shall be no more Greece as a "sovereign state",
hm, or at least "as a kind of sovereign state...", in the geographical shape we know it.

Not to mention the economical bleeding.

Our struggle now is for National Independence and not anymore for bread and pension. These are already lost!

Mon, 06/13/2011 - 15:21 | 1365567 MacedonianGlory
MacedonianGlory's picture


Mon, 06/13/2011 - 13:41 | 1365248 Zing
Zing's picture

Looks like Silver bugs are taking it in the can today. Yikes!

Tue, 06/14/2011 - 03:03 | 1367048 StychoKiller
StychoKiller's picture

4 wordz for ya:  "This too, shall pass."

Mon, 06/13/2011 - 15:38 | 1365605 zebra
zebra's picture

is it still high above the lowest rating you can get, ZZZ?

Mon, 06/13/2011 - 15:45 | 1365624 DK Delta
DK Delta's picture


I just became aware of this report from Kontra channel here in Greece. Apparently, a tunnel that leads from Lykavitos to the Greek parliament, and from there to the sea port of Piraeus, is being cleaned out by foreign workers in preparation for the possible evacuation of Greek MP’s in the event of a storming of parliament ahead of wednesday’s vote on the new memorandum.

The situation here is getting completely out of control. I really don’t know how much longer the people will be willing to wait this thing out. The mood here in Athens is one of intense disillusionment with a government that seems increasingly detached from its own people.

Mon, 06/13/2011 - 16:45 | 1365739 bankonzhongguo
bankonzhongguo's picture

These are the same ratings agencies that said all that MBS paper was AAA?

Why wasn't Greece CCC last year?  What really changed?  Nothing, except the fees for the workout.

Add S&P and their opinions to the pile of professional deceivers at the Fed, GS and Team Obama bin Ladin.

These days, a CCC looks like somebody actually dealing with reality, not kicking the imaginary can down fantasy road.

I'll take a CCC with grit over AAA with unicorns any day.

Mon, 06/13/2011 - 22:37 | 1366705 vainamoinen
vainamoinen's picture

Fanakapan: I do believe it was an Albanian gypsy (or 2) who stole my wallet in Athens last fall - before I even got off the train from the airport. Anyway - it appears the Greek/Albanian border has the same issues as the US/Mexican border - at least that's what an American ex-pat living in Greece told me.


And Robo - I got a copy dude - keep the feed goin' -

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