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Greece Now Rolling Over, As ASE Down 2%, NBG Down 5%, And 10 Year GGBs Dumped En Masse
Well that particular bailout lasted all of 24 hours: that's what happens when the markets habituate to endless non-bailout bailouts. The half life of each successive one is now half the previous. The Athens Stock Exchange is once again seeing deep red (-2% at last check), and now the ever critical 10 Year bonds are starting to get dumped. This follows a massive move in the EURUSD from up 100 bps to now down 15 or so. The 10 Year has now blown back out to 368 bps over Bunds. NBG, Alpha and Piraeus are all trading down 5%. In the meantime, nothing, nothing can touch the US stock market. Computers are now fully sentient and realize that Ben Bernanke will never in his lifetime allow a downtick.
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Repost of early news:By Mike Ramsey and Lizzie O’Leary
May 1, 2010 (Bloomberg) -- A group led by Italy will complete its purchase of most of Greece’s assets this morning New York time, after the EU rejected creditors’ objections and cleared the way for a new Roman state, said two people familiar with the matter.
The new country, Greco-Roman Group LLC, will be owned 20 percent by Italy-based Italy, 9.85 percent by the U.S., 2.46 percent by Canada and 67.69 percent by an Italian olive oil canners’ union retiree health care trust fund. The U.S. and Canadian governments financed the sale with, "...a few more trillion dollars."
The sale will fulfill President Barack Obama’s campaign promise of a “quick” trip through bankruptcy and, ..."saving or creating countless oily Greek homosexual's jobs." Greece now starts fresh with lower debt, fewer expenses, reduced labor costs, a well-capitalized financing arm and access to sober olive pickers and world markets through its Italy partnership.
“They are going to be leaner and meaner -- with management across the Aegean,” said Stephanie Brinley, an analyst with Apac Inc. in Troy, Michigan. “The new country has not lost some of the challenges of the old country. They don’t have new olive trees yet and they are still competing in a difficult environment.”
The EU’s decision allows the creation of a “vibrant new olive growing country with Italy’s know-how,” said a Greece aid in a statement. “The transaction is expected to close very shortly.”
Greece Bankruptcy
Greece filed for bankruptcy protection using the reorganization to retain its strongest assets and form an alliance with Italy that ranks as the world’s largest olive oil producer.
In bankruptcy Court, EU approved the sale and an IMF tribunal ruled unanimously to reject challenges by German pension funds and Hellenic anarchist groups. Supreme Teutonic Commander, Angela Merkel, ordered a delay while the higher EU considered a request for a longer postponement.
In an unsigned four-paragraph opinion, the EU said yesterday it wasn’t deciding cases other than the Greco-Roman deity nomenclature dispute. The order “is based on the record and proceedings in this case alone,” the EU said.
Greece’s recovery may depend on efforts to turn back a U.S. olive oil sales decline of 46 percent this year through May. The olive growers lost $16.8 billion in 2009 as its domestic sales dropped 30 percent, according to EU documents.
Treasury Financing
The U.S. Treasury loaned the grappa-swilling country $4 billion in early January to prevent a collapse at a time when the economy was plunging deeper into recession. The Treasury has provided $15.5 billion in aid to Greece from Jan. 2 through May 27, according to statements from the department.
Italy will run Greece and can eventually increase its stake to 51 percent by meeting certain operating milestones with Greco-Roman Group, LLC, along with option purchases. Italy’s president will hold the same post at Greece and serve on the nine-member board, the other directors haven’t been named, but speculation is they all are named either Peter or Paul.
“We are delighted that the Greco-Roman alliance can now go forward, allowing Greece to re-emerge as a competitive and viable olive oil producer,” the U.S. Treasury said in a statement.
Different Products
The pairing brings together two countries with largely similar products and markets. Greece gets more than 90 percent of its sales from North America through its mob controlled brands, and Italy has almost no legitimate sales on the continent.
The Italian olive oil makers have the most graft enabled distribution in Europe while Greece olive oil is known more for its use as a lubricant between men.
The combined nations would have olive oil sales of 4.5 million barrels globally based on 2009 results, placing them just ahead of Spain.
For Greece citizens, the alliance means the third set of owners in less than two centuries, after spending the past 21 months under the control of Goldman Sachs. Goldman took Greece private for $7.4 billion in August 2008.
The sale transfers to the new country substantially all of Greece’s operations, including eight olive oil canning sites, dozens of islands, equipment leases, and contracts with 789 U.S. “affiliated families.”
Long Wind-Down
The assets left behind, including Nazi restitution claims, will be sold off under EU supervision with the proceeds to be distributed to creditors with claims against Greece.
+ 1 million. You have to start a blog.
this is classic
You have a great and budding careeer at The New Yourk Times and on CNBC!
He could publish somewhere more credible, like The ONION.
Or Pravda.
It looks like the story bullseyed just about every special interest group right where they hurt, in u end o.
Bravo. If it works, perhaps it can serve as a model for a friendly Chinese joint-venture/take-over of California, with a promise not to interfere, for a time, in California's socialist economic structure.
Thanks for the laugh, HH! If you could hack the CNBS teleprompter, I'm sure any of the mindless talking heads there would have read this, unblinkingly, word for word and then enjoined each other in a discussion of this further green shoot.
Genius!! Any chance I can subscribe to future news?
Goldman should start selling the Grecoroman alliance craw bars to separate the men from the boys
If some nitwit at Treasury or the Fed gets hold of this, we may actually see it implemented.
Any public statements on swaps or deposits being pulled?
You know some major money is moving around beneath the headlines.
Hmm, according to Bloomberg, Greece had no problem selling $2.1 billion in debt after the rescue plan:
Greece’s auction of Treasury bills drew stronger demand than at a previous sale as yields more than doubled in the first offering of debt since the nation won a pledge of aid from the European Union.
The government sold 780 million euros ($1.06 billion) of 26-week bills at a yield of 4.55 percent, attracting bids for 7.67 times the securities offered, the nation’s Public Debt Management Agency said today in Athens. Greece also offered 780 million euros of 52-week securities at a yield of 4.85 percent, with a bid-to-cover ratio of 6.54 times. In January, the 52-week bills were sold to yield 2.2 percent.
Euro-region finance ministers and the International Monetary Fund offered the country as much as 45 billion euros in loans two days ago. Greek two-year notes rose for a third day earlier today and the euro gained against the dollar as the lifeline boosted confidence the government will avoid a default.
“The result confirms that the package which was put in place on Sunday has enabled Greece to fund itself in the near- term,” said David Owen, chief European financial economist at Jefferies International Ltd. in London. “But the longer-term fundamental issues in terms of where we go from here haven’t changed. Greece has to put its finances in order against the backdrop of an economy that currently is shrinking.”
Does your copied text sound positive? Sure doesn't from my POV. I'm not sure what you are getting at.
Where do you find the good in mid 4ish yields on maturies less than a year?
German domestic politics is what will cost Greece.
Those Investment bank computers are having a hard time of it - trying to keep the market from drowning and push gold down.
Thanks for the cheaper gold prices by the way by whoever is today's designated manipulator.
The EU’s offer/promise of EUR 45 Bln to Greece can be compared to a life insurance – creditors will get partially paid, but, after the insured person is dead.
Thanks for the questions so far, they are great. I just wanted to post this on one more thread before I made my final list:
Tomorrow at 11:00 AM the President of the Federal Reserve Bank of Richmond is speaking at West Virginia University and taking the students "tough" questions.
I, as a student at WVU and religious reader of Zerohedge, would like to ask the Zerohedge community for a list of "tough" questions for Mr. Jeffery Lacker.
I will be given the opportunity to ask any and all questions. What should I ask him?
Any questions would be greatly appreciated.
Thanks ahead of time. Let's come up with some good Q's for Jeff!!
Ask him why we never needed an IRS until we had a Federal Reserve.
Ask him why the Fed refuses an audit. Their hairball excuse is that they are not part of the government! Yeah... I know. Some things are so stupid they could only be said by an economist.
But run with that. If they are not part of the government, don't they expect to go to prison for fraud, market manipulation, endless violations of the RICO statutes, and last but not least, high treason????
Audit the Fed. Bernie Madoff is lonely.
Ask the following:
If the government though the FED can create money which they can spend anyway they want, why bother with tax collection? Get rid of the middle man and let the people keep what they earn. We already have taxation through inflation.
What is the optimum % of people that should be working for the government, in order to provide adequate services and not be overbearing to the producing jobs pool?
as i think i said before Greece will not be bailed out
its illegal and the french and germans are not pussies like
the Us and Uk citizens. They will not bend over and take it. if their money is used to help
the greeks there will be riots and their governments know this
The bazooka may be loaded but its guarded by a few million angry voters
Haha! nothing touches the US equity markets?! S&P down 4.1 points last I checked. Correction? BOOM, DONE. Markets now properly valued, which means its time to BUY BUY BUY!
The clincher will be when Greece defaults, the EU dissolves or will look like its about to, and every 22 year old retarded trader on WS, (read GS), will plunge into equities for lack of understanding of what a risky asset vs a less risky asset is. Wait...the govt has proclaimed that stocks can't go down.... sooooooo they would all be right.... DAMN!
rhammer
Ask him if it worries him if at any time the US could dissolve the federal reserve as its unconstitutional.
Ask him how he feels to create money out of nothing and then charge interest on it.
Ask him his thoughts on non debt backed money produced by congress for the people.
Ask him why its name has federal in it when its a private bank.
Finally ask him why they all work for Goldman squid
rather than the people.
then tell him to go to hell and that if they continue to ruin the dollar he will find a lot more than horses head in his bed
Maybe that's the reason federal express succeeded?
But on the other hand federal can also be construed as inefficient.
<<<The assets left behind, including Nazi restitution claims, will be sold off under EU supervision with the proceeds to be distributed to creditors with claims against Greece.>>> Even the restitution claims are worthless , it was Italy who invaded Greece , Germany only entered Greece to keep the Italians from defeat.Propaganda.
NBG only down 1.8% check that headline
http://finance.yahoo.com/q?s=NBG
Even less than that...it's flat...much ado about nothing, AGAIN!
Next up...Bank runs
"Computers are now fully sentient and realize that Ben Bernanke will never in his lifetime allow a downtick" This makes sense. A upticking stockmarket soothes the masses and results in a more stable energy supply to run the Matrix computers. With the turmoil of 2008-2009, the matrix found the energy supply of the helpless humans was not predictible enough to run the mainframes. Settle down everyone.
Ben Bernanke will never in his lifetime allow a downtick.
Euh ! kill him
That is because his glock 40 is loaded and when the inevitable happens he will pull his own trigger.
dr No very good
the longer this continues the longer i realize that the Matrix was actually closer to the truth than most people want to accept
Interestingly did people know that sept 11th was on Neros passport as its expiry date
http://www.disclose.tv/files/photos/4ebd440d9950472L.jpg
just sayin..
If you compare photos of Mr. Ben Bernanke to that of The Architect (matrix revolutions), they are eerily similar.
And the fucking USA stocks, tech stocks and so rallying... how nice... house of cards colapsing all around and the robots trading. welcome to twillight zone.
well for kids born now its true, they ARE born into slavery, debt slavery to be precise, 12 trillion dollars of it
According to bankingnews.gr 50% of the bids today made by greek banks. The Foreign banks were made offers above 7% Many bids were fake also lol
http://translate.google.com/translate?js=y&prev=_t&hl=en&ie=UTF-8&layout...