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Market Talk: Greek Finance Minister Says Separation From EU May Be Considered, Greek Gov't Categorically Denies

Tyler Durden's picture




 

Update: Greek government spokesperson categorically denies talk that Greece would consider leaving EU and Eurozone as reported by RanSquawk.

Market talk for now. With the ECB holding the bulk of Greek debt now courtesy of shadow monetization of Greek debt held by French, German and Italian banks, and the imminent default of Greece the second it leaves the eurozone, this should be a massively EUR negative development, as forexlive points out. Which is why we are rather confused by the straight up kneejerk reaction in the EURUSD.

 

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Wed, 05/19/2010 - 10:37 | 360607 DJFUNK
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Press reports will indicate "temporary" separation. Meanwhile, Turkey rises.

Wed, 05/19/2010 - 10:37 | 360609 kaiten
kaiten's picture

EU or EMU?

Wed, 05/19/2010 - 10:39 | 360617 The Patagonian
The Patagonian's picture

My guess, EMU if this is true.  The American press always seems to conflate the two.

Wed, 05/19/2010 - 10:38 | 360613 MsCreant
MsCreant's picture

Mark it talk for now.

Wed, 05/19/2010 - 10:40 | 360620 jbc77
jbc77's picture

In other words, Greece has begun to purchase ink for the printing presses as we head down the road of no return. Lets see if gold moves on this....

Wed, 05/19/2010 - 10:49 | 360652 Grifter
Grifter's picture

Um...anyone else see the "flash crash" phenomenon on silver just now?  The Kitco Silver chart just had a heart attack followed by an immediate adrenaline jab...

Wed, 05/19/2010 - 10:52 | 360662 Quintus
Quintus's picture

Must be a problem with Kitco's data.

Wed, 05/19/2010 - 10:54 | 360669 GoodBanker
GoodBanker's picture

Had to be a glitch; their DXY index printed at 81 at the exact same time.

Wed, 05/19/2010 - 10:55 | 360671 downrodeo
downrodeo's picture

WTF was that about?

 

(nevermind, stupid question... 'why is anything anything?')

Wed, 05/19/2010 - 15:18 | 361396 Hephasteus
Hephasteus's picture

Card counting computer is getting fucked with by a dark pool. Somebodys pulling cards out of their sleeve.

Wed, 05/19/2010 - 10:42 | 360624 bugs_
bugs_'s picture

Give us cash or we will kill the puppy.

Wed, 05/19/2010 - 10:47 | 360642 MsCreant
MsCreant's picture

Nah, Germany said they'd kill the puppy.

Wed, 05/19/2010 - 10:49 | 360653 cossack55
cossack55's picture

Nah, Germans would prefer to kill frogs.

Wed, 05/19/2010 - 10:59 | 360684 Albatross
Albatross's picture

Nah, that would be French.

Wed, 05/19/2010 - 11:37 | 360777 MaxPower
MaxPower's picture

Albatross, methinks you may have missed the double entendre on that one...

http://wiki.answers.com/Q/Why_are_french_people_called_frogs

 

Wed, 05/19/2010 - 11:57 | 360813 Albatross
Albatross's picture

Touché, MaxPower. Thx..

 

I was just trying to point out Frenchy

loves frogs, so they wouldn't miss the chance, you know..

Wed, 05/19/2010 - 12:10 | 360861 MaxPower
MaxPower's picture

La grenouille. Having suffered a bit of embarrassment at the hands of a French friend of mine over the pronunciation of that particular word, let me just tell you that it's a tough one!

The word, not the frog. I like frog actually. Tastes like chicken.

MP

Wed, 05/19/2010 - 12:04 | 360800 TonyV
TonyV's picture

Wed, 05/19/2010 - 10:47 | 360645 TwoJacks
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I see the talk about gold going to 1500 has calmed down. And I'd like to thank Cramer and every other sentimental buyer of gold for the sweet money in those puts I bought in GLD exactly one week ago today. 

nice!

Wed, 05/19/2010 - 10:53 | 360668 sheeple
sheeple's picture

luving that cramer reciprical trade

Wed, 05/19/2010 - 10:57 | 360677 metastar
metastar's picture

Good. Gives me a chance to buy more as things settle down in the near-mid term. The money creation machine will no doubt start roaring again

Wed, 05/19/2010 - 12:42 | 360960 Attitude_Check
Attitude_Check's picture

I bought today, about 1196, glad for the take-down.  It will pop back up shortly.

Wed, 05/19/2010 - 10:49 | 360651 Mark Schiavo
Mark Schiavo's picture

Silver just got shot.

Wed, 05/19/2010 - 10:50 | 360656 cossack55
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Don't worry.  Remember what silver does to the undead.

Wed, 05/19/2010 - 10:51 | 360660 Grifter
Grifter's picture

Yeah, looks like we hit "save" at the same time...what the hell just happened?

Wed, 05/19/2010 - 10:52 | 360663 sheeple
sheeple's picture

option wk

Wed, 05/19/2010 - 10:50 | 360655 dabullify
dabullify's picture

YEP, Greece will leave, but it won't be their choice.....

Wed, 05/19/2010 - 10:50 | 360657 ratava
ratava's picture

so the market finally bitchslapped EU into common sense?

Wed, 05/19/2010 - 10:51 | 360659 Leo Kolivakis
Leo Kolivakis's picture

Com'on are we seriously giving credence to these rummors? A bunch of large hedge funds spreading bullshit rumors, and ZH is falling for this crap? Take a step back and THINK! Why would Greece leave the EU a couple of weeks after the trillion bailout? Anyone, please enlighten me!!!

Wed, 05/19/2010 - 10:56 | 360672 JiangxiDad
JiangxiDad's picture

Why isn't default a better option for Greece than re-structured debt and austerity?

Wed, 05/19/2010 - 10:57 | 360676 ratava
ratava's picture

step 1: 100 bil bailout, eu gaps up and fails the next day.

step 2: 1 tril bailout, eu gaps up and fails the next day.

step 3: idiots at EC realize the only way to save euro is kicking the cheating bastards out, as it has been all along.

Wed, 05/19/2010 - 10:58 | 360680 lizzy36
lizzy36's picture

Same hedge funds who spread rumors about a greek bailout, categorically denied by Greece as absurd for how many weeks?

And Lazard is most definately not working on the restructing.  

 

Wed, 05/19/2010 - 10:59 | 360681 Goods
Goods's picture

 

Thanks for quoting me, and as far I can tell, calm is restored and the markets are heading up again. Not good for gold.

Thanks for quoting me, and as far I can tell, calm is restored and the markets are heading up again. Not good for gold.

Thanks for quoting me, and as far I can tell, calm is restored and the markets are heading up again. Not good for gold.

Thanks for quoting me, and as far I can tell, calm is restored and the markets are heading up again. Not good for gold.

 

 

Wed, 05/19/2010 - 15:19 | 361401 Hephasteus
Hephasteus's picture

Give it a rest.

Wed, 05/19/2010 - 10:59 | 360682 ConfederateH
ConfederateH's picture

Perhaps that trillion is not going to materialize, since it was never really there in the first place?

Perhaps the German Elite have seen where the EU Experiment is heading, and they don't want to be left holding the bag?

Perhaps Merkel deiscovered something really nasty hidden in one of Greece's closets?

Perhaps there is some kind of currency war going on and Germany is preparing a blitzkreig?

Wed, 05/19/2010 - 11:01 | 360691 doomandbloom
doomandbloom's picture

I think its just manipulation of media news to make traders move in a particular way.

spin the news backwards and forwards, till you make enough money on this...I have been watching this since CIT debacle. THIS is how Goldman makes money every single day

Wed, 05/19/2010 - 11:03 | 360694 anony
anony's picture

You are living in an alternate universe to think that anything relies on fundamentals anymore.

Maybe in a decade, MAYBE. But you are now living in the DOA, the Decade of Absurdity where little pieces of paper generate 40% of world profits. Huge amounts of Kill-o-watts are being used up by massive computers in tangled amorous foreplay with each other, while the material world is auctioned off by United States Treasury. 

You sure you want to step back and THINK! or shouldn't you step away from rationality and abandon the future to fantasies of social collapse?

Forsake sanity, Embrace bedlam.

It is the natural order.

 

Wed, 05/19/2010 - 11:17 | 360732 Hoi Polloi
Hoi Polloi's picture

Yep, compared with a 6-8 months ZH is becoming a gossip blog rather than a serious one. See the Iran war hype. Time for TD to shape up.

Wed, 05/19/2010 - 12:47 | 360979 JackTheOffer
JackTheOffer's picture

This is SPARTA!!!

Wed, 05/19/2010 - 14:08 | 361170 desgust
desgust's picture

+1

Wed, 05/19/2010 - 12:08 | 360849 -273
-273's picture

A country as small as Greeze will never ultimately pay back the at least 350 billion they owe as they and everyone else realises.

The bailout was for the french and german banks, not for greece. It didnt clear their debt, just extended it, added to it and kicked it down the road somewhat.

 

Wed, 05/19/2010 - 12:33 | 360922 Canucklehead
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Are those the same bunch of large hedge funds that are buying solar stocks?

Wed, 05/19/2010 - 10:59 | 360666 hedgeless_horseman
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Which is why we are rather confused by the straight up kneejerk reaction in the EURUSD.

When The Beard receives his Humanitarian of the Year award from the ECB I envision him wearing a white dinner jacket this time, rather than the black, so my premonition indicates the banquet will be in the summer time.

Pour the brandy, settle down here in front of the fire, and let Ol' Uncle Ben tell you about how I saved the world back in The Great Intervention.

Wed, 05/19/2010 - 10:54 | 360670 lizzy36
lizzy36's picture

One might speculate that the "we are not engaged in QE" ECB is also not engaged in currency intervention.

 

Wed, 05/19/2010 - 11:19 | 360741 DrFever
DrFever's picture

Here's my take.  Please forgive me in advance if my level of market sophistication is not up to par.

That trillion dollar bailout package was really for the European banks that are exposed to the Greek Debt.  It had nothing to do with giving the Greeks real assistance.

If the Greeks pull out of the Euro, and as a result of that bailout package the European banks are saved, wouldn't that actually help the Euro given that it has just let go one of its weakest links?

 

Wed, 05/19/2010 - 11:22 | 360752 snowball777
snowball777's picture

Which is better for the Euro, as a currency...if some European banks get defaulted on...or if the European CENTRAL Bank gets default on (and covers their ass by printing Euro)?

 

Wed, 05/19/2010 - 11:33 | 360770 JiangxiDad
JiangxiDad's picture

You got that right, but what's better for the individual countries--their banks getting decimated, or some nebulous ECB?

It's beginning to look like there won't be a happy ending :)

 

 

Wed, 05/19/2010 - 12:40 | 360955 Canucklehead
Canucklehead's picture

I think that is a good analysis.  Also, the German banking system can be rejigged.

http://www.atlantic-times.com/archive_detail.php?recordID=47

Wed, 05/19/2010 - 11:21 | 360747 bob resurrected
bob resurrected's picture

Greek debt restructuring I can believe. This would be euro positive. Greece or Germany leaving the EMU, I just can't see it. But, the Club Med competitiveness issue remains euro negative over time. Johannes Gutenberg

Wed, 05/19/2010 - 11:22 | 360750 cognitis
cognitis's picture

Which is why we are rather confused by the straight up kneejerk reaction in the EURUSD

 

Trading's a tough gig. Don't trade real money on a real trading platform using canned indicators fundamental or technical.

Wed, 05/19/2010 - 11:30 | 360761 Goods
Goods's picture

Leo, I don't know why people are junking u?! I gave u a thumbs up buddy! Thanks for sharing such insightful wisdoms as,

calm will be restored when the trillion dollars starts being felt in the financial system.

And ofcourse my favourite from yesterday,


Thanks for quoting me, and as far I can tell, calm is restored and the markets are heading up again. Not good for gold.

Wed, 05/19/2010 - 11:51 | 360797 Leo Kolivakis
Leo Kolivakis's picture

You're a rookie who doesn't know his head from his arse. Only chicken shit idiots are selling now. Buy this dip, all of this will blow over. Dow will bounce off its 200 day EMA:

Wed, 05/19/2010 - 11:33 | 360768 wintermute
wintermute's picture

forexlive is wrong. (are they quietly taking positions against their readership?)

Greece leaving euro is massively bullish for eur/usd.

Wed, 05/19/2010 - 11:58 | 360817 Kina
Kina's picture

Gold and silver are looking great ..time to start adding some bulk.

Wed, 05/19/2010 - 12:37 | 360929 doggings
doggings's picture

@ Goods - lol. yes indeed, its sure good to have a "pro" here to advise us rookies isnt it?

:) <-- that's my arse grinning from cheek to cheek there btw, at least I think so, Im not sure..

Wed, 05/19/2010 - 12:47 | 360962 doggings
doggings's picture

Buy this dip, all of this will blow over. Dow will bounce off its 200 day EMA:

like this one just did?

http://www.zerohedge.com/article/200-dma-taken-out-es-drops-below-1100

Thu, 05/20/2010 - 12:16 | 362128 M.B. Drapier
M.B. Drapier's picture

forexlive just said it? Meh, others have been saying it for a while.

But enough carping! Here's a nice story about the Eurosystem. Apparently the Central Bank of Luxembourg spent much of earlyish 2008 providing repos to Kaupthing, Glitnir and Landsbanki secured against the debts of ... Landsbanki, Kaupthing, and Glitnir, not always respectively.

(Come to think of it, there's a connection here.)

Thu, 05/20/2010 - 12:01 | 363112 doggings
doggings's picture

You're a rookie who doesn't know his head from his arse. Only chicken shit idiots are selling now. Buy this dip, all of this will blow over. Dow will bounce off its 200 day EMA:

er hem... ? http://marketbear.blogspot.com/2010/05/dow-crashes-through-200-day-movin...

still more quality advice from the pros. ..someone is definitely "bodily confused" round here.

give it up leo, this is not your vocation.

 

 

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