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It's Official - EU Agrees On Greece Bailout
German opposition crumbles, as a Greek bailout plan is now official. We expect Portugal, Spain, Italy, Latvia, Ukraine, Bulgaria, Austria, and, finally, the UK, to line up next at the trough. And for all of you cynical bastards who thought that G-Pap was full of methane when we claimed he was not looking for aid... You were right. So now, under the wise tutelage of Goldman, make sure to plough all your money into the Euro. After all there are at least a few months before the next bailout has to be effected.
The eurozone has agreed a multibillion-euro bailout for Greece as part of a package to shore up the single currency after weeks of crisis, the Guardian has learnt.
Senior sources in Brussels said that Berlin had bowed to the bailout agreement despite huge resistance in Germany
and that the finance ministers of the "eurozone" – the 16 member states
including Greece who use the euro – are to finalise the rescue package
on Monday. The single currency's rulebook will also be rewritten to
enforce greater fiscal discipline among members.
After all bailing out worked miracles for the US financial system and Dubai, so why not again... and again... and again. Good thing the UK, which as UniCredit pointed out yesterday could be next in the bailout wagon, is not paying. Now that would be truuly ironic.
The member states have agreed on "co-ordinated bilateral
contributions" in the form of loans or loan guarantees to Greece if
Athens finds itself unable to refinance its soaring debt and requests
help from the EU, a senior European commission official said.
Other
sources said the aid could rise to €25bn (£22.6bn), although it is
estimated in European capitals that Greece could need up to €55bn by
the end of the year.
Germany, the EU's traditional paymaster, but
the most reluctant to come to the rescue of a fiscal delinquent in the
current crisis, has played the pivotal role in organising the rescue
package, the sources added.
"There have been quite intensive
preparations under the eurogroup. We have the ways and means to do it,"
said the senior official, asking not to be named because of the
subject's sensitivity.
We expect Greek rioting to break out in Berlin relatively soon.
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Just in case anybody wants to see what a real-life example of herd-mentality "looting" looks like as the flood gates open:
http://www.youtube.com/watch?v=A8_b5Z5_k5c
Just think, someday soon it will be US supermarkets...their precious little minds.
someday soon it will be US supermarkets...
already happens anytime the weather report shows the possibility of an inch or two of snow.
I already have my 6 cases of "don't squeeze the Charmin" toilet paper and 9 cases of Bubble Bee white albacore "packed in virgin spring water" tuna fish. So I'm all set for the riots. :>)
bumble bee dolphin?
Better stock up on Spam CD, not many calories
in Tuna...50 yr shelf life too
To think a year and a half ago I said there would be riots soon. Let me correct that statement; "Ahem. Attention shoppers, the revolution will NOT be televised. Thank you."
Ooops. Did GS factor this into their 1.45 target? I guess the underlying assumption is that there will be a QE III or some such thing in the states, and that it will be the US taxpayer footing the bill indirectly through the GS / JPM conduit.
Now the German taxpayers can feel just like the US taxpayers. Misery loves company as they work harder for less & less...
It looks like The ECB with the help of Merkal and Sarkozy have manged to create a "European Monetary Fund" for endangered EU member states.
I wonder if the IMF will be used to bailout California?
Gold bitches...
who ever needs an eventual bailout better cry wolf now and get their bailout soon before the line-up gets crowded and the EU (or IMF) runs out of money
Someone needs to read the fine print of the agreement. What does Greece have to accomplish from a budgetary perspective (if anything) and how/when will that be monitored. And what happens if it is found that Greece instead of clamping down on its budget now relies solely on the guarantees. After all screw the Germans I need my vactation and pension.
I'm sure the Greeks will do the honorable thing.
No really.
Stop laughing.
...and to allow for bailouts of members?
I guess the Eurp 1.45 target is calculated on a time basis untill the next hedgey-GS crises induced. So that gives us a time frame of a couple of months before we start hearing of another soverign failure candidate...
Hey Wolfgang cough up those Euros now - we in Ireland are not a great fan of this austurity thingy.
And please please do not take the Piss out of us - we are all Europeans now baby
whatever happened to the game Risk? Why can't a dozen hedge funds buy Greece, overthrow the current government and then offer an extremely competitive tax rate? What more do these guys want?
The key to that game was the Ukraine.
:D
No...it was all about Kamchatka!
Just one step closer to a split in the eurozone and the currency itself. It will happen.
not sure how reliable the Guardian is, all of us need a second source to verify.
i do admit, GS' trading call on EUR seems remarkably coincidental with this, though.
bailouts for all states .. QE to infinity ..
bend over grab ankles go ah
You gotta wonder how the Irish feel about this...
For a while I thought the Irish government had a plan of sorts - express to the Germans that we will take some pain and then when the situation becomes impossible the Teutonic Calvary could come in to clean up the mess but now I am not so sure - maybe the Greeks are just better poker players.
I think the Greeks used the riots to sell the threat of economic collapse to the rest of the EU. It's interesting how quickly the EU was willing to violate their own rules.
It certainly provides a template for other countries that need financial support.
Yes the second Lisbon treaty was a wake up call for me - nothing gets in the way of the EU juggernaut , it just gets a bit messy for a while and they stumble on and invent new conventions.
The funny thing about the Lisbon treaty is that the whole economic thrust of that article is now obsolete - it will be hilarious to watch the bureaucrats in Brussels trying to salvage something from this bonfire of the vanities.
Strange that the bailout did not get any attention in German online newspapers.
Handelsblatt, Spiegel online and Financial Times Deutschland did not report any bailout plan.
The story closest to a bailout-report is in Handelsblatt and has a totally different spin. A bailout would include strict austerity measures and harsh sanctions if overspending continues. In the extreme a country could even get expelled from the monetary union while staying in the EU.
http://www.handelsblatt.com/politik/international/schaeuble-plan-pleites... (in German)
The Austrian newspaper Der Kurier has quite detailed information leaked from the ongoing negotiations for a Greek bailout scenario.
http://www.eurointelligence.com/article.581+M53b52e4d5c3.0.html
A Euro version of a 'bazooka in my pocket'
By the way TD your blog is winking in and out of existence today ...
Must be all the MSM staff getting buggy-whipped and frantically trying to figure out where in that 2000+ page opus
your nuggets are coming from :)
One day some Union Head will wake up and say, shyte, we should have a worlwide strike to break the backs of the banks...........not just one Greece Strike but 100 in 100 cities, cripes we got the inernet...........stop the bank looting u govt rejects or see how things work with zero sales growth
not saying it's a good or bad idea, just someone will try it on for size
Greece will never be able to pay off these loans. There is no will - the people are selfish and greedy only showing interest in their own pocket. Their ability to tax is highly limited as most people of any financial consequence are self employed and report very little income. The taxes are staggering and getting worse. Benefits will be slashed hurting morale even more. Strikes will continue slowing any potential growth and really damaging their tourism trade especially if it continues for another few months...May is almost here. Bottom line - the economy is not big enough or strong enough and the people aren't committed enough to pull this off. Greece will default, it's just a matter of when. When it does happen, it wouldn't surprise me to see them forced to resign from the EMU in exchange for some debt forgiveness. Who knows if they'll stay part of the EU for trade. People who think this is over are whistling past the graveyard...kinda like the first stages of the subprime debacle. Oh it's "contained". Sure...
Sure looks like they are buying some time & kicking the can down the road. Mind you, by then either we'll have more countries on the default-list (including some biggies) or the world economy will be improving. Either way, it's the only viable option for Greece & the EU to take right now.
Why should you feel morally obliged to pay back a loan that the banker just printed into existence?
It's a scam. You're just sharing in the scam with the banker.
+1000
get lost or change your nickname. its greek
Consider for the moment, that Greece will only need make a payment in perpetual debt peonage. Which, in its smallest installment, is servicing interest on the loans. So, can Greece pay interest on the loans?
One outstanding question is one of how to enforce or gauge Greece austerity from the EU? If indeed this is a real concern. How does one do this?
Also, if more countries are going to default, or threaten to, it may be that getting the loans now is in Greece's favour. After all there is a possible play here in currancies if the EURO is under pressure in the near future.
Mark Beck
funny how greece gets bailout while latvia and iceland get lasso'd round their necks and dragged along
Man O Man I wish there was a stock symbol for economic embalming fluids.
The last wish of the Oligarchy is
"Kill the weak but save the dead!!!"
Wrong thread, sorry.
You get backed into bailing out the first one (Bear Stearns), while offering stiff warnings to others that they need to clean up their act because you won't do it again.
The (German and French) public get really pissed off about paying the tab, so the next time, you don't blink and you let them go down (Lehman).
Everything goes to hell, panic ensues, and the (German and French) public bails out everyone with newly printed money.
How this all works when you've already been in a recession and pumping out stimulus programs for two years is an unknown....
I don't see how going down this path is bullish for the Euro....
The Euro hasn't reacted one iota since the announcement. That in itself is kind of strange.
Because Goldman said it is...
By the time they get around to telling everyone else what to do, aren't they usually starting to do the opposite?
Yes. It is called front running and is a clear conflict of interest, but not anything the US.gov wants to worry about. Barry O'Potus has "free health care" to sell, and multi-tasking is not his strong suit. So stop asking questions, and have a drink. It's Friday.
After a little probing, looks like Merkel found the G Spot.
nice.
I really thought the IMF would do it.
so, we are now on global welfare, and all the nation/state systems are officially obsolete.
now, they all march toward the precipice together.
actually, it's progress. the precipice tends to clarify the thinking of individuals.
"The single currency's rulebook will also be rewritten to enforce greater fiscal discipline among members."
Let me guess... Fiscal "planning meetings" with each nation's finance minister to be held quarterly in Monaco, or one of the Baleric islands.
This post has something to do with the one GS recommending being long euro? too much coincidence!! i heard a different story from the finance minister of Germany suggesting to oust those countries from the euro that not complying with regulations. be serious!! this blog sometimes is too skewed and we know very well that the guardian is not a serious newspaper.
I could be wrong I think Mr Market has the Greece bailout priced in for now. The contrarian view as Faber says is bullish on JPY... maybe Euro too in the shortrun, before it all flies apart like a helecopter crashing into the ground.
Tomorrow, it seems, never comes. So why not put it off? Was there ever a question? Now that the easy one is done, it's time to move on up the chain.
going to be entertaining.
seems that we are genuinely at a tipping point for some of our States as well......this sure seems to me to be the eye of the storm and that backwall is just gonna be a son of a bitch!
+1 states and municpalities dropping like flies.
I just don't understand the world anymore. None of it makes sense. Germany and the rest of the EU prints up millions of Euros to bail out Greece and the Euro goes up?! Wouldn't this destroy the value of the Euro? Does irresponsible behavior beget an increase in value?
You are using reason. Stop it.
No, no, you have it all wrong see. Print more US dollars and the value declines because there are more dollars so each dollar is worth less. Print more Euros and the value increases because... well because there are more Euros and that means they are stronger.
I've given up trying to make sense of it all at this point.
I believe a American Bureaucrat once said to a French Technocrat that it is our currency but your problem.
What he meant by that is the Fed can print all the reserve it wants since it is the reserve - so it actually cheapens other currencies buying power since they are not the reserve and therefore are squeezed out since the only "real money" is the FRN. The rest of the world is then forced to hold FRNs to preserve their buying power - it is a beautiful system of control but the rest of the world is getting a tad pissed off.
This may be the one of the reasons that foreign banks got payed through the AIG conduit as it was the only way that Europe could withstand the 2008 shock - there were perhaps other reasons but I seem to remember reading somewhere the French Finance Minister had some heavy dealings with the US treasury.
.
Kurier from Austria is also reporting the story...
"The German government put together an emergency package for Greece - and hopes that it will ultimately cost you nothing."
"While the policy was the creation of a "European Monetary Fund" for endangered EU member states and stricter rules for speculation in CDS derivatives in fixed income trading vociferously debated, they played secretly through the concrete life of Greece. Chancellor Merkel is the engine - along with French President Sarkozy. "
http://www.google.com/translate?sl=de&tl=en&u=http%3A%2F%2Fwww.kurier.at%2F
Go go global infinite moral hazard!
Let this be a lesson to the states in the USA. If you want a bailout, riot. Don't tighten your belts like Ireland, break shit like Greece! Can't wait for the CA and MI riots, hell I wonder if the state reps will advocate the riot "People break out the gas and the hammers! We need free money from Uncle Sugar!"
At least now I get to see what the Germans are made of, if they will take this lieing down like the Americans have. If they do then we'll see them fully gutted to save the everyone for a few more months.
I have absolutely NO DOUBT in my mind that the American people will choose rioting over austerity, considering that for the majority of them hard work means watching American Idol.
hard work = what happens when the batteries die in the remote.
hard work = "isn't there an illegal around i can pay cheap to do that?"
Hard work for many millennials is finding a place to crash.
Wrong. So very very wrong.
The stormtroopers will pound the living sht out of anyone who dares cause a serious problem in a serious part of the Union.
The poor areas will be left to rot , a la New Orleans.
To add, "hard work" includes facebooking.
Yeah but it will do no good. If I was steering the American operation for the oligarchs I would have Zimbabwe Ben prop up the muni/state market and when I can't hold it up anymore (dollar weakness) kick the legs out from under it and wipe out all the states pretty much at the same time. They go for bailout and you can either vaporize the dollar right there with mass printing or also kick the legs out of the Treasury market and really put the screws in. After all if gas reaches record highs and you have TSA goons looking for "terrorists", how many could really get to DC to protest?
I'm sorry, here is what I THINK PEOPLE ARE THINKING
all is okay
a. i learned from nasdaq, i should have got out sooner been more aware........as the saying goes, fool me once shame on you
b. okay, that second bubble i kind of saw it coming, yet I never imagined it would get that bad, how could the govt have been so lax, yeah, i saw the bubble in housing, yet, i didn't think it would effect me.........so, fool me twice, shame on me
c. everyone and i mean everyone beliefs NOW THEY WILL SEE THE SIGNS AND BE ABLE TO GET OUT IN TIME, I HAVE LEARNED MY LESSON AND AM AS JIMMY HENDRIX WOULD SAY EXPERIENCED
my final conclusion is this, most say it goes back 30 years, i say nyet
a. early 70's when options came into play was the set up, that allowed market makers who had to own a book, ie, capital investment, could now hedge effortlessly, this loosened up capital when into sales sales sales to a growingly rich generation from the depression and newly minted college grads, stock market returns 9% a year, bank on it, bank on it, bank on it
b. greenspan saves lcm and floods market with liquidity during nazz boom, he can control things no problem
c. repeal glass stegal, do not regulate derivative market per law, ie, a bigger option scheme with no controls, then allow 40-1 leverage in aug of 2004
d. ben and tim save the world
Leaves us right here right now. If this was the sixties there would be rioting en mass. Now adays you vent on the internet and don't bring the rage home. IMHO, that is what banksters and pols are missing, they do not SEE HEAR OR FEEL ANY BACKLASH, zero zip none, that's just that jerk in the basment etc. etc. etc.
I'm sorry, the signs are pretty apparent and have been to me since 2000, lehmans report just FACTUALLY VERIFIES IT FOR THE MAN ON THE STREET IF THEY ARE SO INCLINED TO LEARN
97% of folks do not understand basic accounting, thus, u fool em all, when as zeroh says, oh too complex for you, 99.99999% of folks don't understand options, thus, they trust and trust totally
iceland, iran, greece, riots in the streets for one simple reason, we pay taxes for you to do the right thing, and now your fuck ups are fucking us up
things will not change until all of us are fooled a third time
obvious to me, i'm always early and overleveraged in the beginning, my timing tends to be off by 1-3 months, like clockwork
we're all sitting on a time bomb, and fwiw, i'm fairly calm about it, a feeling of ripping band aid off, and we can go back to doing some real work that produces real job
good luck too all
tinfoil hat wearing fiddy yr old, who retired at fordy
Hey, might as well bail out Greece. The term moral hazard no longer has any meaning in the world's of financing , banking and politics. It only applies to the peasants. If you at FED up with this go to SwarmUSA.com and look at Freedom's Vision sponsored by the American Party PAC. It shows the way out.
It seems to me bailouts do not fix anything. And they will only make things worse, in the long run. Unless you fix it the problems. But, when human nature comes into play, meaning greed/corruption/fools/banksters - I don't see any of our problems going away, until it all goes BOOM!
imagine that. and so soon after the President of Greece paid a official visit to the big O.....i am so shocked. ladies and gentlemen, we now have bailout......bend over boys and spread those cheeks uno mas tiempo. do this one for the gipper will ya? that is 300B for the sq
Perhaps we should start designing trendy riot gear. monetize that shit.
The Greeks deserve a bailout, after all, they invented democracy.
That's true. I feel better now.
...
"Mob Rule"...yeah great thx!
About time they made the news "public record".
Well I guess it's settled then. Thanks for your "They're poor, let's make fun of them and kick them in the balls" coverage on the subject, Tyler.
Either this story is as bogus as all the rest about Germany caving . . . or they ran out of bananas.
Time to buy some more Vrenelis.
And what role is the Fed playing in this, the latest installment of the ongoing charade?
Just imagine how much fun the german politicians are going to have trying to defend themselves against incumbents when all they have to do is point out that the sitting politicians gave money to people who called them nazis.
Until somebody OFFICIAL stands up and says the same "sources" isn't good enough to make me believe this is anything but another bullshit news release meant to prop up the euro for a short time.
Remember the south korean investment bank don't you?
Beware of Greeks bearing gifts ....
Ian Traynor of The Guardian in article Greece Debt: EU Agrees Bailout Deal reports that European Leaders have agreed to go beyond the Euro Currency Agreement, and the Lisbon Treaty by providing two Framework Agreements.
The first Framework Agreement, will provide seigniorage for Greece's monetary needs by making loans or loan guarantees to Greece, if Athens finds itself unable to refinance its soaring debt and requests help.
The second Framework Agreement, is designed to prevent future monetary and economic crises. This Framework Agreement will federalize monetary and political authority to enforce greater fiscal discipline among EU zone members; it establishes a system of rigorous "budgetary surveillance" of all 16 participating countries. The aim is a new regime of "reinforced economic policy co-ordination" in the EU. The Framework Agreement establishes "the credibility of the European Union; the euro is not only a monetary arrangement, but a core political project"; thus the Framework Agreement establishes a One Euro Government. Member state Greece is expected to abide by austerity measures prescribed in Bussels and Berlin.
For those who think it will be a picnic, check out these photos:
http://www.occupiedlondon.org/blog/
http://www.occupiedlondon.org/blog/
once again, this is the usual bs from british newspapers. How many times have they written about a bailout?
German dementi from saturday:
http://www.salzburg.com/online/nachrichten/wirtschaft/Deutschland-dementiert-Bericht-Griechenland-Hilfen.html?article=eGMmOI8Vgt8NH8hhMFpTosunDbtLbcR67C4lVQo&img=&text=&mode=
the government doesn't know anything about a bailout and expects that greece can refinance itsself.
I don't get you folks. chart out FXE. you had three days of higher lows on thursday good rsi, and indicators. I wish I had bought a few days ago, bu got a good pop for the overnight. I'll take the low of friday, put in a dollar bull purchase order, in case it's a fake break out. the bollenger bands were narrowing. it had a classic bull set up. with a hug bottoming volume day.
to me the interesting thing is how the markets didn't follow currencies are all. we should not by anywhere a new top in spy.
"Germany, the EU's traditional paymaster, but the most reluctant to come to the rescue of a fiscal delinquent in the current crisis, has played the pivotal role in organising the rescue package, the sources added."
Thus Germany could have fairly asked for the IMF gold.
Today was announced tht Grk govmnt agrd to buy/pay germany (Thyssen) capsized submarines. It seems now both gvmnts arvd to an agrment in exchange to a rescue program. They cover/polishing tht purchase fm the people talking tht immy submarines wl be resaled to another country, the liar bastards
This is wht was saying few days ago tht germnay used to do in greece for the last 20 years. Twisting hands, blsckmailing and corrupting political life on high level.
Feel both gvmnts fllw wrong path
Are you referring to the corp? If so, is the corp the same that was founded by Fritz Thyssen, the chief Nazi fundraiser, whom had his money drawn from a bank in Holland, that was provided by loans by the bank of Brown Bros, Harriman while Prescott Shelden Bush was pres. of said bank?
PS, All gvmnts fllwng wrng pth.
Correct am referring to Thyssen Corp.
Mon-tues is the ecofin meeting in brussels for deciding reg greece rescue plan and germany obviously pressed for such an agreement.
Ttl amnt tb paid 2,85 bil and all claims by grk gov cancelled. germans wl help resale submarines to other countries.
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