This page has been archived and commenting is disabled.
Greece Threatens EU It Will Go To IMF For Bail Out Unless Merkel Stops Changing Her Song Every Fifteen Minutes
From Dow Jones: Greek PM Says If EU Doesn't Help Greece It May Go To IMF. Also, this is the definition of a complete lack of leverage: Greek Cabinet Member: PM Says Greece Needs EU To Show Its Support Now, and that the Time for EU Help Has Arrived. And screw strikes - here comes the civil war:
- Greece to cut public sector salary benefits by 30%,
- Cuts wages across the board.
- Establish emergency tax of 1% for salaries over €100,000
- Freeze public sector hiring in 2010, and in 2011 one new job will be filled for every 5 retirements
And all this is followed by a cold water throwing Angela Merkel who just said that the Friday meeting will be purely on the "State of things" and no aid to Greece will be promised.
As always, pure anarchy - should be enough for some 1-2% worth in computerized S&P buying on a few hundred ES blocks.
»
- 3754 reads
- Printer-friendly version
- Send to friend
- advertisements -
A couple of more provocations from the garlic chewers and I am sure the Wehrmacht will bring their tanks in position and march into Athens.
Nahhh... Not with the obscene cost of diesel for those tanks. The Germans will simply wait for Greece to be auctioned off for pennies on the Euro.
Didn't I say two weeks ago or more that IMF would "get the nod"? Should I search and find the post? Duh.
Edit: IMF will wait while a Greek face is put on the "austerity" measures, so that it is viewed as Greece and not the IMF that is imposing its will on the nation, and then the IMF will lend them money. Don't you guys know how this shit works?
+1
Respectfully disagree. An EU bailout (through EU banks) will come as early as the end of the week. The surprise will come from the FX markets where the euro will continue to fall. Currency speculators know that these austerity measures just announced are 1) papering over deep structural issues in Greece's economy 2) throwing a very weak Greek economy into a depression/deflation spin 3) they will be met with riots in the streets, either now or as soon as the public begins to "feel" the pain of reduced salaries and spend.
The EU knows which direction this is going. If the EU refuses aid and the IMF steps in and the situation disintegrates further in the near future (which it will) then Greece will pull out of the eurozone. It will become unattainable for their politicians to continue with the EU. Germany can't afford this scenario with Portugal and Spain no too far behind. Expect them to blink.
Spot on
An IMF bailout may trigger a series of events that allows us to skip to the final phase of the crisis immediately where US and UK bonds collapse. In that case I look for a percent or so higher in the Dow right after the announcement followed by an 8000 point drop over the course of a month.
We might as well just cut to the chase.
wow. bring the Dow down to gold instead of vice versa? what will happen to all those monies (dollar/sterling pound)? No inflation on the debt owed? All fiat currencies will collapse in this case.
Might as well write off the EU if they let the IMF eat their lunch. Who will take them seriously?
if you think it's drama now, just wait til Italy starts to crack.
"- should be enough for some 1-2% worth in computerized S&P buying on a few hundred ES blocks."
exactly, but I wish I could go along with it, but I cannot because it is just plain out of economic and fundamental reality. I do not want to be caught in the carnage when reality finally hits, so I just have to watch and wonder at the madness of computers
"Greece to cut public sector salary benefits by 30%"
That'll go down well with the public servants. No drama I'm sure.
the Greeks will say anything to get the money. they have absolutely no intention of following through on any of the promised "austerity" measures. business as usual.
Why are we paying $1.36 for a EUR again? The EUR was at $1.00 10 years ago and we bid it up to $1.60 because supposedly the EUR zone is such a great, debt free paradise of producitvity. Now we find out it's not.
+1. But then again, it's hard to gain ground when Benny and Timmy keep on a-printing.
That is why it is called a race to the bottom.
Yes, indeed! Let the presses roll come hell or high water. Uncle Ben and Tiny Tim will always find the necessary funds to help the Greeks. The IMF will be the conduit for disaster, let the games begin.
"But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost."
Perhaps it is because if the IMF do the bail out the Euro states do not have to put their hands so directly on the printing press / bond guarantee / fiscal aid lever - or whatever mechanism they would use. As far as the Euro goes the IMF is the least bad option IMO. However I dont disagree with your sentiment that the Euro could / will fall further but for now a few weak shorts will possibly get liquidated. I would like to know how many crappy MBS the Euro central bank has taken in from Spain et al, anybody know if the information is `out there`?
As far as the Euro goes the IMF is the least bad option IMO.
Mine, too. IMF loans provide the best obfuscation.
Merkel hasn't been changing her song. Her tune has remained the same "No bailouts for Greece." What's so difficult to understand about that?
Oh, right -- some German MEP of Greek heritage keeps babbling to the press about some guaranteed debt deal - when he's so junior in the government that he has no plausible reason to know who, what or when any of this would happen.
Λιτ?τηταhttp://ftalphaville.ft.com/blog/2010/03/03/163916/%CE%BB%CE%B9%CF%84%CF%...
If you don't start drinkin'/I'm gonna leave. - George Thoroughgood
I see Turbo Tim listening to Gear Jammer whilst printing zillions of FRNs.
http://www.youtube.com/watch?v=EcQWvWD9YR0
the Greeks will say anything to get the money. they have absolutely no intention of following through on any of these "austerity" measures.
the Greeks will say anything to get the money. they have absolutely no intention of following through on any of the "austerity" measures.
So a 1 percent tax rise for the 15,000 Greeks who earn over 100,000 EUR and bother to pay any tax on it.
Greece slowly puts the gun to it's head...."give me the money, or the deigo gets it."
Regards.
the Greeks will say anything to get the money. they have absolutely no intention of following through on any of the "austerity" measures. business as usual.
IMF! IMF! IMF!
The proud Greeks will fight against the IMF legions and their newly bought mercenaries, AKA the Greek security apparatus.
How surprising when the austerity measures melt away like olive oil soaking into soft bread. Oopsie!
Really no big deal, more a distraction to try to reorient the crisis into a 'useful' crisis--with the terribly boring target of public sector unions.
Come on. These financiers (say it with a sneer) just about killed the world, continue to steal billions from our kids, and want us to....attack unions. Riiiight.
Oh and call Mish Shedlock and tell him to retune his banjo...maybe after the real issues are dealt with we can fix things like unions and littering?
Apologies if comes off as sophomoric yet that is exactly what i seem to be hearing from greece. This is getting so childish like "My dad will beat up your dad" taunting. Greece needs to face the fire and borrow from the IMF because obviously no one wants to give them money that will never be repaid. Other countries are not is a good position so they have nothing really to give away and Germany has experienced a currency crisis before so they know to hold on to what they have... and hold it tightly.
"that allows it to produce as many U.S. dollars as it wishes at essentially no cost."
No cost. Wow. Just print away then Benny.
"Money for nothin' and your checks for free".
Should be good for another 100 point rise in the SPX.
Fiscal responsibility is now termed "austerity".
Yep they'll call the genocide by whatever name. Either way it's wrong, doesn't have anything to do with the problem, and engaging in 'austerity' won't solve it anyway. It'll just keep some bankrupt banks from appearing more bankrupt because the loan don't go belly up and trigger something larger.
Besides they'll have to get all these austerity measures past the Greek people, who at this point wow I just don't know what to say. We've seen how their people will stand up over the past few years. These cuts seem bigger to me than all the others combined.
People who force austerity have ran out of ideas. If they're out of ideas, DON'T VOTE FOR THEM.
Pride can be overruled. Will europe really hate being bailed out by the IMF? Normally I would say yes. But if the situation is as hopeless as it appears its getting, then perhaps Merkel and everyone else think it will let the IMF waste their money?
Wage cuts will be (and have) been attempted too. Kudlow was screaming about how Ford was great that it got it's employees (obviously under threat of bankruptcy...but not because of their wages), to cut wages/benefits from the around 75 to 50. That's about a 33 percent salary and benefit cuts.
Is a 30 percent wage cut going to become the new normal? Will it be patriotic to suck it up and take these wage cuts, while Big Ben is making it rain with as many dollars as bankers need to appear solvent? Nope. You'll just be a sucker. But let's not get ahead of ourselves too much.
30 percent wow, who would of thought the best thing on TV during sweeps might be GREEK....no not the tv program (that's probably canceled for all I care about it), the revolution.
I'm sure their businesses will do well now that a huge swath of their population will now have 30 percent less to spend, with fewer overall numbers having that 30 percent less to spend. Wage cuts for everyone else. Even more taxes. Wow. 30 percent shocks me. My guesstimate was around 10-15, and that would cause much social unrest. 30 percent....watch out below that's a greek statue falling towards your head.
I'm sure at a time when Greeks are taking money OUT of the banks, they'll happily put more in now that they'll be making 30 percent less.
Holy Arctropolis Batman
I think it's 30% of 'benefits', being 1 month of their three months of bonus holiday pay.
No wonder the fuckers are bankrupt.
I concur with the poster above that they'll do anything to get the guarantees, then welch on the austerity measures.
SUCKERS!
The IMF/World bank runs the world. DOelarr DOuble Xrossed, YES!!!!!!!!!!!!
Global currencies in two short years unless America and Europe take over their banking system. I am not talking about any "Nationalization"; simply give power to the states to have State Funded banks. This may piss China off. I formally apologize, sirs. Why did you play games with Henry Kissinger and David Rockefeller? China you have two years too spend your Doelarrs on gold, go!
ucvhost is a leading web site hosting service provider that is known to provide reliable and affordable hosting packages to customers. The company believes in providing absolute and superior control to the customer as well as complete security and flexibility through its many packages. windows vps Moreover, the company provides technical support as well as customer service 24x7, in order to enable its customers to easily upgrade their software, install it or even solve their problems. ucvhost offers the following different packages to its customers.