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Greece Gives Germany And European Union One Week Ultimatum (No, You Are Not Dyslexic)
First 130 Congressmen, now Greece: the examples of people who have no idea what the definition of negotiating leverage means just don't stop. G-Pap has decided to go all in on 2-7 off suit. The problem is everyone knows what his cards are, and his bluff is about to be promptly called by everyone; too bad the Cyclades are still not in the pot. Give them a few weeks... Bloomberg reports that: "Greek Prime Minister George Papandreou set a one-week deadline for the European Union to craft a financial aid mechanism for Greece, challenging Germany to give up its doubts about a rescue package." And here we were thinking only Bernanke was clinically insane. G-Pap, it turns out, is shocked that someone can just say no to his generous offer of allowing someone else to bail him out. Act now, or in one month when you can buy Greece (and its islands) in a 363 sale, it will be too late (to overpay).
From Bloomberg:
“It’s an opportunity to make a decision next week at the
summit,” Papandreou told reporters in Brussels today. “This is
an opportunity we should not miss. When you have that instrument
in place, that could be enough to tell the markets hands off, no
speculation, let this country do what it’s doing.”Greece pinned its hopes on the Brussels summit as German
officials voiced qualms about an EU-led rescue, potentially
backtracking on a commitment hammered out by finance ministers
just three days ago. Greek bonds and the euro fell.Greece, which was brought to a standstill on March 11 by
the second general strike this year, needs to raise about 10
billion euros ($14 billion) to refinance bonds that come due on
April 20 and May 19. Papandreou said Greece cannot afford to
keep paying current market rates.
The question of the day: are the acconts who bought into Greece's most recent 10 year bond offering already underwater:
The yield on Greece’s 10-year government bond rose 14 basis
points to 6.23 percent at 2:25 p.m. in Brussels. The euro fell
for a second day against the dollar, slipping as much as 0.7
percent to $1.3648. Credit-default swaps on Greek sovereign debt
rose 7 basis points to 295, the highest in a week, according to
CMA DataVision prices.
And just to show that there is absolutely no confusion which way Germany is leaning when it comes to G-Pap's ultimatum, Germany kindly suggested that Greece should leave the European Monetary Union. Asap. From Market News.
The head of Germany's Ifo economic research
institute on Thursday said the best way to solve the Greek financial
crisis is for the country to leave the eurozone."I would recommend that Greece leaves the European Monetary Union,"
Sinn said at a press conference in Berlin. The country should then
devalue its currency and a debt moratorium should be put in place, he
proposed."This would be cheaper [for the other Eurozone countries] then to
permanently finance Greece," Sinn said, arguing that Greece's biggest
problem was its elevated foreign trade deficit and not mainly its high
public debt.
In the meantime, the market once again ignores all bad news, and just focuses on whatever good news there is, even if it means the reading of a Philly Fed, whose upward buoyancy is about to come to an end as the artificial economic stimulus begins to finally wane.
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..Greece, gun to own head, shouts at the assembled crowd..
Take one more step and I'll shoot the hostage.
..Germany, face contorted in a sly smile....
Go ahead. Make my day!
http://www.youtube.com/watch?v=o6-Snl4a1RI
First thing I thought of was that scene from Blazing Saddles...
http://www.iris.org.il/blog/uploads/blazingsad74.jpeg
Hold it, men - they're not bluffing! lol...
William K. Black first reminded me of this "Blazing Saddles" moment. Perfect analogy!
Fall of the Republic-The Presidency Of Barack H Obama-Part 5:http://www.youtube.com/watch?v=9ucYHLsAHB4&feature=related
Hey, thanks for the link! It starts getting real interesting when you get to Part 7 . . . but ya gotta work your way through the earlier parts to fully appreciate it, I think.
Bob, I know you've always held your intellectual nose, as it were, in response to this kind of stuff, but I have to compliment you for having enough open mind to take a chance on this video (of course, replying to/complimenting yourself, maybe not so much, but this series is spellbinding, even to a fervently "progressive" liberal.)
Back to the series now . . . just loving this stuff.
Have a good day, folks!
Bob
Great minds think alike. That's the first thing that popped into my head.
BTW, great Irwin Mainway avatar
Ohh, baby, you are so good.
And they are so dumb.
CD / Hey buddy, how are you. We just read this above post. Our first response is -- are human beings really this STUPID? To which we reply, yes, absolutely.
Stupid is as stupid DOES... OR... Stupid is, as stupid is TOLD to do.
TD Noted:
The problem is everyone knows what his cards are, and his bluff is about to be promptly called by everyone;
reply:
IE You're right. This tactic worked brilliantly in Blazing Saddles for Clevon Little. TD, precisely what in the current financial environment makes you believe this technique has lost it's effectiveness?
Personally, I think Animal House rules apply to the situation. If you're going to screw up big, then you should screw up with pride and challlenge the rest of the world to keep up with you. I think the Greeks should throw a toga party rather than hurl threats. They'll win on style points. Nobody really wants to hear whining finance ministers go all facty and make expulsion or detention threats.
yes you can delete it. Edit
Thanks for the tip. I decided to work a little harder and patch it up.
Slysdexic.
So it seems nobody really doubts the IMF is going to bail Greece out, right?
Bloomberg reports
"The International Monetary Fund will come to the rescue of debt-strapped Greece after a “game of chicken,” according to Mohamed El-Erian, co-chief investment officer at Pacific Investment Management Co."
http://www.bloomberg.com/apps/news?pid=20601087&sid=aA6guOqFRjfY&pos=4
If memory serves me correctly, Timmay pumped $ 100 billion ObamaBucks into IMF about 6 months ago. That amount should bail out a bunch of Greeces. TARP gone international. Acropolis for collateral.....assuming it doesn't already carry a lien by now.
rain...o/t but NY put the kabosh on today for half a billion dollars worth of refund checks....will not send out until april 1 at earliest (they won't meet this deadline because they won't have a budget by then and the bigger money won't roll in for taxes until after april 15.)
DH....don't know who junked you, but I'll bet they're waiting for a big NY refund check.
Cali's been mailing checks so far.......but maybe only to make it look like they're not as fucked up and broke as NY. In fact, CA is not as fucked up and broke as NY. It's in a league all to its own.
BENNIE AT THE ACRAPOLIS!
This is why the deadline actually makes perfect sense, as far as I can tell. It's really a 'put up or shut up' challenge directed at people like Trichet who have said that an IMF bailout is 'unacceptable': either they actually produce a non-IMF alternative or the Greeks will get on with negotiating an IMF deal.
Dyslexics of the world untie!
Did anyone hear about the two dyslexics arguing about the existence of dog?
Or the Devil worshipper who sold his soul to Santa.
The way I heard it, it was an agnostic insomniac dyslexic who was up all night wondering if there's a dog. But anyway.
CNBS says 1 MONTH deadline. Just in time for next month's options expiration.
See no evil, hear no evil
night wondering if there's a dog
as he looked in the mirror and barked
Greece saga and ' Blazing Saddles'... ... ... ... --
anybody recall this famous scene from Blazing Saddles ?
http://www.youtube.com/watch?v=fFl3pWbfVX8
well , replace the sheriff with George Papandreou in Greece and his insane deadline he has given the EU today ( see below ) and you'll see the common connection ... ... . all the video would need would be Merkel in Germany egging the sheriff on to shoot himself ! ... ... . OF COURSE THE EU WANTS THE IMF TO COME IN AND BAIL OUT GREECE ! IT GETS THOSE DOPEY AMERICANS PICKING UP THE BULK OF THE TAB !
A rather infantile threat from Georgie-boy.
Hmmm, what's next? I'll run away from home? I'll pee in your (EU) swimming pool? I'll poop in your (EU) punchbowl?
You all are wrong, he has plenty of room to default on all Greek debt. I imagine that would put a burr in quite a few European saddles.
"Act now, or in one month when you can buy Greece (and its islands) in a 363 sale, it will be too late (to overpay)."
CLASSIC!
I will pay a Krugerrand to anyone who places the following bumper sticker on Papandreou's car:
Know speculators, know loans.
No speculators, no loans.
I do so love to see the stratification and caste system being developed right before our eyes. EU is the lower middle class. IMF is the projects.
Greece will not be bailed out. I have been saying this for a year now and I guess my prediction is coming true.
Now Greek PM says he is not going to ask IMF or EU for help??
Maybe he gets the answer as NO! just too many times and is pretending it is all from him now.
OR...
Bennie and the InkJets just did a special run for him!
No less than a game of sovereign debt chicken. Germans won't blink, Greece is gone. Next!
G-Pap is giving the EU a chance to excel--this is not a problem, it's an opportunity~
The European (Soviet) Union will never break up, Never!
I say Greece nationalizes all those German investments, bring in the Chinese, moves back to the drachma and pegs it to the US dollar.
Like Greece has the power to nationalize anything now that half the state is on strike.
They will offer them ten times their pay.
Of course, they won't realize that the drachma is only worth 1/1000th of what the Euro was. But they will have gotten what they wanted by the time they figure it out.
Are people just that stupid or what? It is absolutely insane to buy long-term Greece debts at 6-7% levels.
The entire issue of Greece debts is a Ponzi-scheme. Why? Because people who are buying Greece bonds must know very well that they will never be paid back in full or even good portion of it. Consequently, the old & present bond holders are praying that new buyers will pay off to old debt holders. The only question: when will the music stop?
The other thing that amazes me is that people (and/or countries) who lived for a quite while well above their means have audacity to DEMAND that, since they became used to their new high life-style, the society and/or other countries must continue to support their high standards of living. It is just incredible.
caconhma- 'Are people just that stupid or what'?
Same thing can be applied to ANYTHING going on today! People also should be considered insane to buy long term US debt, or buy all-time high stocks, yet the magical walk-ups just continue! Well, until they dont, and thats the real trick here in the world melt-up while melting down as long as we can print and pump insanity. I dont think they continue this much longer at all.
Ive just stepped aside, no way am I nimble enough to out-guess Jason B's multiple exit strategy scenarios, or out crook the best crooks in the world with presidential backing. Hell with it, the markets are ruined for decades or perhaps forever.
I liked DEMEND better. DEMAND plus DEMENTED equals DEMEND?
I thought DEMEND was an opposite to AMEND :)
Sure they'll be paid back.... in drachmas. Hehehe
Reminds me of the opening scene in Blazing Saddles 'WHEW, that was a close one! Almost lost a perfectly good hand cart!'
With this BS daily melt-up over all time high market valuations, I believe its a matter of covering for this Soviet style deathcare bill passage, then its a market melt down, cant help but to believe theyre pulling the plug on the HAL 2010 HFT computers very soon.
Oh, now Ukraine is in on talks with IMF...
next California.... and 51 other states?
Does that include Cuba?
Mexico :)
Ooops sorry forgot the UK as well
Film negative of that specifically, actually.
There's already BILLIONS in Obama's 'Healthcare' Bill for 16 states as a bailout
I wonder if they'll go as far as to hold the Adriatic pipeline project hostage. Keep an eye on STO stock.
4 weeks now.
Back and forth every day every week.
Greece says we dont need a bailout
Greece says they are proud people do not want a bailout
EU says they have arranged a bailout
EU says they have not arrranged a bailout
Greece says they require aid
Greece says they are taking measure to cut deficits
IMF says EU should support Greece
Germany says Greece must be responsible
EU says bailout reach agreement reached
Germany says there is no bailout
Greece says they do not need assistance
Greece says they are in major trouble may require aid
EU says they are standing by ready to assist
IMF urges action
Greece says situation is deteriorating
EU says bailout is a done deal
EU says nevermind that is a false rumor no bailout
Greece says bailout not necessary and debt will be paid
IMF agrees with possible greece "assistance"
IMF refutes bailout assistance for Greece
IMF says EU must handle this internal problem
Germany says no way.
Greece ask for World War II reparations
Germany gives Greece the finger
Greece passes austerity measures
Germany says ok..way.
Greece Prime minister does the global tour lining up a 100% guaranteed bond sale by visiting U.S. (Backdoor American Bailouts)
EU says they are proud of Greece measure underway
EU says with new measures aid will be given
Greece says We no need no stinking bailouts
Greece PM NVM we may need a bailout
EU says Greece should approach IMF
IMF says this is a EU problem
Greece says IMF says we may qualify for aid but we do not need it.
Anyway this is a 4 week farce designed to move markets. Expect continuing headlines of this nonsense as the world continues to point fingers instead of accepting blame.
Bottom Line is as I said 4 weeks ago...LEAVE NO DOUBT THAT A BAILOUT FOR GREECE WILL OCCUR. I am more certain of that than dying.
Even if Bubbles Ben Bernanke has to fly the pallets over in the helicopter and drop them of at the Acropolis himself.
True price discovery is not an option in bubble world. The middle and lower class citizens of the globe must not be allowed to pay anything but inflated premiums on all goods.Affordable homes is not an option.
My Brain hurts
My brain hurts too (Monty Python)
http://www.youtube.com/watch?v=IIlKiRPSNGA
Ok you used my lipstick on the pig. Fine. But your gonna have to shave its beard.
Sounds like the healthcare "endgame", er, shellgame - except that they want you to think paying attention is important.
+10 John and freakin hillarious
Give Greece the money to pay it's bills or it will default(and buy gold on the open market)?
Is Germany ready for a Freegold monetary system or do they want to hold the $ debt system together? Would Germany rather force Greece into the corner having them set off the gold bidding war so they don't have to set it off themselves?
If they bailout Greece the bailouts will continue forever killing the EU. If they kick Greece out they better be ready to kick out the rest of the PIIGS(and lose all of that italian gold) which will eventually destroy the EU.
Force Greece or the Italians to pull the trigger and set off freegold so they(Germany) don't look like the ones who brought down the global debt ponzi scheme
Perhaps GS will take a huge long EURUSD position and then bail Greece out themselves.
It appears to me that very shortly Germany (and possibly Japan) will have to go nuclear.
It appears that a race to a major geopolitical rearrangement is under way and is accelerating.
At any moment, the "controlled" de-leveraging process is about to go out of control.
I agree. I feel like we are being prepped for another Black ___day with all this talk of trade wars with China, shooting war with Iran, etc. I believe that the govt is doing everything in its power to delay the next crash, but you know they have to have a backup plan in case something unexpected happens and makes them lose control.
I love it when GPap comes to the US and tells reporters "We've done our part, now it's time for the EU to step up"... uhhh... It's ALL "your part" dipshit! It's YOUR debt, and the real problem is exactly the kind of thinking that takes "your problem" and assumes it's everyone's problem.
tru dat, fo sur.
A bailout for a roll over of the debt will accomplish nothing without Greece getting a balanced budget, not a reduced deficit. Unless they recognize that it will have to be default.
US has the same problem, different timing. A whole lot of people are going to have to change their way of living. That does not have to be a bad thing, but it sure will be a painful wakeup call to some.
LOL
Speaks volumes.
Awesome!
More dyslexia. He really meant "high borrowing costs due to austerity program not sustainable."
Pompus really does have some bargaining ammo. It is the Germans who engineered the whole EU, and don't want to see it beak up. Does anyone really think they WON'T be bailed out? Everything else has. It's just a little more trash currency. No cost (they think).
@LeoK:
Yes, "nationalizing all those German investments" is really a good option, given that Germany is Greece's most important bilateral trde partner. I hope you were intending that in tongue-in-cheek fashion.
Hearing Greek PM Georgie Pee continually whining about "unfair borrowing costs" prompts a Zen-like question:
"If ones issues an IOU one knows one is going to default on, does the interest rate even matter?"
Of course I was being tongue-in-cheek. And don't think for a second that I'm happy with Greek politicians who basically cave into the opinions of the Greek press. A buddy of mine in Athens calls Greek politicians "Casanovas with hard-ons looking to f*ck any p*ssy in sight". They are a joke.
This is too much - this goes in the nobody can believe basket.
G-Papaloola, he's my baby...
In a bipolar world, I'm not sure that G-Pap is as crazy as he seems. It's political theatre. I suspect the Greek people love him making demands of Germany. I also suspect that the powers that be can't afford to have the EC break up over Greece. We shall see soon enough, but I've learned over the last year that the only reason so much of this seems bizarre is because I am attempting to apply logic in an increasingly illogical world.
Agreed. Besides, it's not like Papa has much to lose at this point, right? And we all know "freedom" is just a word for "got nothing left to lose".
Help us promptly, what is taking so long!?!?
I heard that his exact words were "This is Spartaaaaaaaaaaaaaa!"
LOL:
"Confer on you, the level of Jedi Knight, the Council does. But, agree with your call on Chinese solar stocks… I do not."
Bravo for both posts.
But the winner is........hedgeless_horseman..........not. :>)
I love the smell of Star Wars in the morning, but Yoda don't surf.
'G-Pap has decided to go all in on 2-7off suit'
Marvellous. Thanks for dumbing down the Greek sovereign debt crisis into analogies we can understand.
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