Greek Bailout Money Is In Jeopardy As The IMF's Departing John Lipsky, Former JPM Chief Economist, Is In Temporary Command

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Sun, 05/15/2011 - 10:42 | 1275969 uno
uno's picture

from the front page of the imf.org regarding the rapist:

"The IMF remains fully functioning and operational."

NO IT'S NOT

Sun, 05/15/2011 - 10:50 | 1276000 uno
uno's picture

also from their website

John Lipsky, an American, has been First Deputy Managing Director since September 2006. Before coming to the IMF, he worked for JPMorgan Investment Bank.

Sun, 05/15/2011 - 11:05 | 1276037 goldfish1
goldfish1's picture

IMF is forced to promote its second in command, John Lipsky, previously chief economist of JP Morgan

Motive enough.

Sun, 05/15/2011 - 11:05 | 1276056 anynonmous
anynonmous's picture

not so fast

from last month

"FRANKFURT (MNI) - From the view point of the International Monetary Fund, the bailout program for Greece could be extended beyond 2013, IMF Deputy Director John Lipsky said in an interview published Friday."

 

http://imarketnews.com/node/29478

Sun, 05/15/2011 - 12:26 | 1276292 rsi1
rsi1's picture

Lipsky? nah, just making room for Draghi..

Sun, 05/15/2011 - 16:14 | 1276912 asdasmos
asdasmos's picture

Indeed, the IMF is now flaccid.

Sun, 05/15/2011 - 10:45 | 1275970 digalert
digalert's picture

Lipsky? This stuff can't be made up...can it?

Sun, 05/15/2011 - 11:20 | 1276098 Xibalba
Xibalba's picture

"IMF is forced to promote its second in command, John Lipsky, previously chief economist of JP Morgan, to the rank of acting managing director" --- NOW it all makes sense. 

Sun, 05/15/2011 - 12:52 | 1276383 A Man without Q...
A Man without Qualities's picture

The funny thing is to trace Lipsky's career further back.  He was actually in Chase Manhattan Bank prior to the merger and before that, he was one of the IMF/ CIA/ Rockerfeller Chase economic hitmen in Chile.  DSK was never more than an interloper...

Sun, 05/15/2011 - 10:46 | 1275972 ThisIsBob
ThisIsBob's picture

It is unclear tio me how $3,000 a night hotel roms and first class seats on Air France (of which US taxpayers front 17%) is of substantial assistance to Greece.

Sun, 05/15/2011 - 10:55 | 1276004 Arius
Arius's picture

the bailout money is not going to greece either...its for banks in france and germany...greeks will just pay a higher interest...

Sun, 05/15/2011 - 11:04 | 1276050 duncecap rack
duncecap rack's picture

Article says he was in NY on personal business.

Sun, 05/15/2011 - 11:41 | 1276138 ZeroPower
ZeroPower's picture

Air France is pretty shitty though...just throwing it out there

Sun, 05/15/2011 - 13:21 | 1276455 CynicLaureate
CynicLaureate's picture

Not as I recall... in First Class on a Transatlantic Air France flight not only does the seat turn into a flat bed, they also provide complementary pajamas.  Nicest flight I ever took to Europe.

 

 

Sun, 05/15/2011 - 19:11 | 1277396 sgorem
sgorem's picture

they also have very pretty stewardesses, dressed in cute little maids uniforms. They come around and "fluff your pillow up" for more HEAD room, and it's for free.........

Sun, 05/15/2011 - 10:46 | 1275973 bugs_
bugs_'s picture

sacrebleu! sounds like oui are running out of heads at ze I.M.F.

Sun, 05/15/2011 - 10:46 | 1275975 Glasgow Gary
Glasgow Gary's picture

This is precisely the kind of news event that traders will use to press a EUR short bet, only to discover that the effects last all of 6 hours. I expect the EUR to be rallying hard again by Tuesday afternoon.

Sun, 05/15/2011 - 10:55 | 1276017 Caviar Emptor
Caviar Emptor's picture

hehe this sets the Fed agenda way back. They knocked down crude oil a bit through political maneuvering (twisting arms to get margins increased), and now the dollar will go sky high again. Both are deflationary and exactly the opposite of their stated goal from last autumn to create inflation. Earnings at big multinationals are now in jeopardy from a growing list of causes. Real interest rates are super negative. Housing jobs and incomes are still deflating. They're gonna have a fun summer!

Sun, 05/15/2011 - 11:02 | 1276042 Glasgow Gary
Glasgow Gary's picture

But let's consider the pattern: all super-negative EuroZone scares the past year have resulted in further EUR strength after a short spike down. And, all USD rally hopers have been blown out after similar brief USD spikes. Just sayin'. What's more , the USD rallies are getting successively weaker, and shorter. That's been especially true this spring.

EUR sags tonight into tomorrow morning, then rallies hard starting tomorrow night or Tuesday morning as late traders once again think "news" is a cause to drive the EUR lower. They will be sitting on losses by Tuesday afternoon.

Sun, 05/15/2011 - 11:09 | 1276059 Caviar Emptor
Caviar Emptor's picture

Agree. But my point is the anti-infaltionary forces are mounting against the Fed's little experiment. They're back flat on their arses with nothing to show for their trillions in diminishing returns. 

Sun, 05/15/2011 - 11:20 | 1276091 duncecap rack
duncecap rack's picture

Wouldn't the fed be the winner if they were allowed to monetize the US debt with impunity? If they could print all they wanted with no loss to the purchasing power of the dollar it seems like win-win for the US gov. and the fed.

Sun, 05/15/2011 - 11:31 | 1276114 Caviar Emptor
Caviar Emptor's picture

Ahh but you're missing the point: there can be deflation AND inflation simultaneously (biflation). It's very retro of the Fed to see it all in linear, 2-dimentional terms when reality is more polynomial and 4-dimentional. The real economy is deflating (incomes, jobs, real estate, corporate and tax revenues) while they continue to print trillions, weakening the dollar and causing hard asset inflation around the world. So no, there is no impunity. The more they print, the worse the US economy will get and they'll also jeopardize faith in the dollar possibly to the point where there's a global rush out (which is slowly gaining momentum already)

Sun, 05/15/2011 - 11:19 | 1276092 Rynak
Rynak's picture

I'm still perplexed why the currency markets are still as strong as they are, especialy europe... i mean, its not like its underground news that the EMU is in big trouble. Shouldn't in such a scenario other more exotic but stable currencies go up?

Sun, 05/15/2011 - 11:33 | 1276124 Caviar Emptor
Caviar Emptor's picture

They are

Sun, 05/15/2011 - 11:53 | 1276168 DeadFred
DeadFred's picture

Your confusion is because you believe the markets still respond to news. If you look at the news that supposedly moved the FX markets what was really there? Last year the Euro dropped on 'fear of contagion' but solidified once 'stress tests' made investors gain confidence. Did anything real change during that time? Just the news coverage. IMHO the FX markets go where the FX gods (or devils) make them go and the news is there to suck retail investors into losing positions. But my humble opinion has become pretty jaded of late. I suggest a contrarian position.

Sun, 05/15/2011 - 13:14 | 1276442 dracos_ghost
dracos_ghost's picture

I was thinking the same. Even here on ZH, there have been posts about record levels of non-commercial spec long EUs. Good old fashion rigged game to create nothing but negative news to shake out the weak hands. Spike down, then the big dogs come back in and buy.

I also don't see how this impacts the Greek bailout. If anything, the IMF will need to come out with a super positive spin to the EU bailouts to maintain stability.

DSK was a lame duck administrator anyway, I agree with others that this has more to do with Sarkozy and the French elections than any economic news.

 

 

Sun, 05/15/2011 - 13:42 | 1276480 dracos_ghost
dracos_ghost's picture

dup

 

Sun, 05/15/2011 - 13:11 | 1276428 LeBalance
LeBalance's picture

... other more exotic but stable currencies go up ...

Now WHAT could they possibly be?

/jingle, jingle, jingle/

Sun, 05/15/2011 - 11:07 | 1276048 Glasgow Gary
Glasgow Gary's picture

duplicate.

Sun, 05/15/2011 - 10:46 | 1275984 Caviar Emptor
Caviar Emptor's picture

50% off Greek salads and Souvlaki. Hurry, supplies limited. 

Sun, 05/15/2011 - 10:48 | 1275986 Drag Racer
Drag Racer's picture

in the case of Strauss-Khan, what happened to diplomatic ammunity? or does the port authority get around this?? seems quite a coincedence for this to happen right now... setup???

Sun, 05/15/2011 - 11:55 | 1276186 tmosley
tmosley's picture

The IMF is not a diplomatic organization.

If it was, this financial crisis would look a lot more like Lethal Weapon 2.  And that would just be too awesome.

http://www.youtube.com/watch?v=SiXNUaSjXRY

Sun, 05/15/2011 - 12:44 | 1276370 Drag Racer
Drag Racer's picture

To play with the IMF you sign agreements which are similar to UN immunity clause.

http://www.imf.org/external/pubs/ft/aa/aa09.htm

Here is an example in practice...

Immunity for British IMF chief over 'wife assault'

http://www.telegraph.co.uk/news/worldnews/asia/pakistan/7797943/Immunity...

Wolrd Bank has the same deal

http://www.brettonwoodsproject.org/art-72221

This basically answers my question though. He was not operating in official capacity at the time of the incedent.

IMF bylaws state that its officials "shall be immune from legal process with respect to acts performed by them in their official capacity except when the fund waives this immunity." Strauss-Kahn's attorneys did not answer questions from CNN about whether he may claim that diplomatic immunity covers such an allegation.

http://www.cnn.com/2011/CRIME/05/15/new.york.imf.questioning/index.html

Mon, 05/16/2011 - 00:13 | 1278130 Bringin It
Bringin It's picture

Appears it don't apply to rape.  Here's Domonique at the job interview.

http://www.youtube.com/watch?v=2_urvjCXg6c

Sun, 05/15/2011 - 12:02 | 1276202 JohnG
Sun, 05/15/2011 - 10:49 | 1275990 Honest_Money
Honest_Money's picture

I'm sure that there are many people in line who would love to hand out the SDR toilet paper and pretend that they are the savior of the world.

Sun, 05/15/2011 - 10:52 | 1275991 sabra1
sabra1's picture

"The DS-K pecker remains fully functioning and operational."

Sun, 05/15/2011 - 10:49 | 1275994 Oh regional Indian
Oh regional Indian's picture

Oh goodness. Lips to the sky. Such interesting names of key players in the world eh? Kash and carry, BrrrrrrBank, Dimon...d.... trippy.

Such a strange move in the grand game though. Puzzling. It feels like we are watching a bad B movie and the damn restraints on the arms of this plush chair hurt!

Nothing makes sense anymore. Really. The theater of the absurd is on us like a ton of bricks...

ORI

http://aadivaahan.wordpress.com/2011/05/15/the-times-they-are-a-changinggggg/

 

Sun, 05/15/2011 - 11:03 | 1276033 Caviar Emptor
Caviar Emptor's picture

It's like a cheap remake of the good, the bad and the ugly. We got Obama, Osama and Omama (DSK)

Mon, 05/16/2011 - 00:11 | 1278133 Bringin It
Sun, 05/15/2011 - 13:09 | 1276433 snowball777
snowball777's picture

Difficult to distinguish between hubris run amok (apparently) and a convenient framing lie, well-told...a well-meaning saboteur of the PTB could do worse than to insert a monkeywrench thus.

http://www.youtube.com/watch?v=I7rCNiiNPxA

Sun, 05/15/2011 - 10:55 | 1275996 Sudden Debt
Sudden Debt's picture

WHAT A GREEK TRAGEDY THIS IS!

So the IMF wanted to give them money which could cause the euro to drop pretty hard making the dollar to strong which could harm the "reconnery".

Monday the dollar will go down now.... the euro up... and the euro crisis remains.

 

 

Sun, 05/15/2011 - 10:51 | 1275999 RobotTrader
RobotTrader's picture

At least none of our acting politicians is involved in a sex scandal.

I wonder if this means the Euro is going to get slammed tomorrow.

Perhaps we will see more of the "Risk Off" trade with mad F12-punching speculators selling anything and everything that is commodity oriented and fleeing once again into U.S. Dollars and Treasury Bonds.

Poor Bill Gross.

He picked the exact wrong time to be shorting treasuries.

Meanwhile, it looks like Jim Puplava and his crew have dropped the "buy and hold" religion on gold and oil, and Ryan actually has some of this clients short commodities and long dollars right now.

http://www.netcastdaily.com/broadcast/fsn2011-0514-1.mp3

Even the most devout inflation worshipers are now starting to respect the powers of Uncle Gorilla, and have now adopted an F12-punching, short term bit-flipping trading strategy.

Heh, Puplava is actually bullish on many Dow stocks, as Ralph Ancampora is now convinced that we are now in a secular bull market.  As some of the most unlikey "widow and orphan" dividend stocks are skying like Internet stocks.  While gold and oil stocks are now under intense liquidation.

Sun, 05/15/2011 - 11:00 | 1276023 HamyWanger
HamyWanger's picture

Robot, bro', I totally agree with your reasoning and I'm long stocks for this reason since February 2009.

But do you think the DOW can go higher than 14,500? It's already back at Nov. 2007 levels, and I'm afraid anymore further would be viewed as indecent. Sure, the Pigmen will probably not hesitate to do it, but it wouldn't surprise me if they allowed a 1,500/2,000 pts controlled drop to make a killing first on momo bulls, then on bears. 

Sun, 05/15/2011 - 11:12 | 1276071 Caviar Emptor
Caviar Emptor's picture

Why not? And what would be the point of trying to be "decent" or even real? If you're right and only pigmen and uncle gorillas are in charge then we should see S&P 30,000 by December. That way they can all retire and let the momo bulls and bears fight it out for a few years with a good cushion. 

Sun, 05/15/2011 - 12:01 | 1276198 Arius
Arius's picture

Hamy...i am w/ you...remember a book from 2000 titled DOW 36000...better late than never...to the moon!

 

Sun, 05/15/2011 - 11:34 | 1276117 El Hosel
El Hosel's picture

"At least none of our acting politicians is involved in a sex scandal."...

What a relief, things will be just fine.   They are all buttfrking the system daily.

Sun, 05/15/2011 - 11:53 | 1276175 Muir
Muir's picture

@robo

"Even the most devout inflation worshipers are now starting to respect the powers of Uncle Gorilla"

You are the most ignorant of apostates.

My good Sir, do you not realize what good news in disguise this is for silver?

$600 / ounce here we come.

_

Sun, 05/15/2011 - 10:55 | 1276008 RNC
RNC's picture

Comedy hour at its finest. You couldn't make this shiat up!

Sun, 05/15/2011 - 10:53 | 1276009 falak pema
falak pema's picture

Merkel calls the shots on this...the IMF only follows up on what the ECB/Merkel have decided. They are NOT front seat on this...So Merkel will have her hands free to make her calls and IMF will be more back seat...that's all. Germany has NO strategic interest in seeing Greece defaulting. NONE. So plan accordingly.

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