Now That The Banker Bailout Plan Is Set, Here Are The Greek Islands About To Hit Ebay And Fund Another Record Wall Street Bonus Season

Tyler Durden's picture

The description of the Greek bailout plan in the NYT has just one salient paragraph. Here it is: "With great reluctance, European governments have come to the conclusion that an additional €60 billion now, while politically unappealing, would be less costly than the unquantifiable public funds that would be needed if a restructuring of Greece’s debt produced a Lehman Brothers-like contagion that spread not just to Portugal and Ireland but possibly Spain and the financial system as a whole." Ah yes, with "great reluctance" European governments, bought and purchased by bankers, have decided to bail out their sources of capital. As for the conclusion, the only thing that matters is how long before European taxpayers realize that once again they are the mark in this latest pathetic attempt to ignore reality, which incidentally for those who are clueless, is the following: "“Greece’s G.D.P. is already declining and now the government will need to cut another €7 billion in spending,” said Jason Manolopoulos, who manages a hedge fund based in Athens and Geneva and is the author of “Greece’s ‘Odious’ Debt: The Looting of the Hellenic Republic by the Euro, the Political Elite and the Investment Community.” “That is only going to make the debt to G.D.P. figures worse,” he said. “There is no getting around it: Greece is insolvent.”" So while the bankester cartel is dead set on bleeding the last drop of hemoglobin from the petrifying Greek corpse, here, courtesy of the WSJ is what will soon be purchased by special purpose entities controlled by the same banks that are just now getting bailed out.

But before that, here are the details of the latest brilliant "Kick The Can Down The Road" plan:

While the agreement for as much as €60 billion, or $86 billion, would, in theory address Greece’s need for cash this year and next, it puts off for the time being a restructuring, hard or soft, of Greece’s mammoth debt burden

At the deal’s heart would be an informal understanding that the private sector holders of Greek government bonds might be persuaded to roll over their debts, or extend new loans at the time their older obligations come due.

By taking on more dubious Greek risk — backed by new funds from Europe and the International Monetary Fund — exposed banks would not just step back from the precipice of a “haircut,” or a forced loss on their bonds, they might also hope that in another two years, Greece will be in a better position to repay its debts in full.

The expectation that Europe will again come to Greece’s rescue bolstered both the euro and equity markets on Tuesday. Yields on Greek 10-year bonds have dropped sharply, to 15.7 percent Tuesday from a high of 16.8 percent last week.

The plan may be new, but the idiots in charge are the same:

“Restructuring is off the table,” said a senior official in the Greek Finance Ministry. “For now it is all about growth, growth, growth.” This person, who spoke on condition of anonymity while the talks continued, said an announcement from the European Union, the I.M.F. and the European Central Bank could come as soon as Friday or early next week.

What growth? Can someone explain how the country will generate "growth" and, far more importantly, cash, when it is selling off assets?

And for details on that we go to the WSJ:

Now might be your chance to buy that portion of a Greek island you have been coveting.

As part of Greece's privatization plan to raise cash to reduce its mountain of debt, the national government is preparing to sell as much as €30 billion ($42.9 billion) of public property. It is still early in the process, but future sales are likely to include assets ranging from the government's stake in the Mont Parnes Casino resort in Athens, hotels, and even a concession to develop a luxury resort with a world-class golf course on the island of Rhodes.

The Hellenic Public Real Estate Corp., the government body that manages public property, has a list of about 75,000 individual government-owned properties. The corporation has appointed National Bank of Greece  SA to lead a consortium of advisers who are now preparing to sell an initial portfolio of 20 to 30 properties, the first of which could be put on the market in the next few months, according to Aristotelis Karytinos, general manager of the real-estate division at National Bank of Greece.

The International Monetary Fund, in its latest report on Greece, estimates that as many as €15 billion could be raised through real-estate sales. Mr. Karytinos says expected proceeds from property sales or leasing is now estimated at between €15 billion and €30 billion. The first step is to sift through the long list of public property, identify the best real estate, and resolve any legal issues to ensure that the property is able to be fully developed by investors.

There is a "plan" to make the sale of the country to the same creditors that the country is bailing out palatable:

"Our strategy is to award concessions, long-term leases of 30 to 40 years, depending on the individual property, but the government will retain ownership of the land," Mr. Karytinos said. "The first properties should come to market in the next few months, but certainly by the end of the year." Long-term leases are attractive partly for political reasons.
Development by foreign investors would be more palatable for Greek
citizens if the underlying land remains in government hands.

Luckily, the Greeks are idiots, and will never figure outthis bait and switch. But don't worry: Santorini will be sold As Is; with a 7 day overnight FedEx ground (or boat) delivery option. Sold to Goldman. No concessions there. Especially since nobody will agree to the concession route:

"It is too easy for tenants to break leases in Greece, and that adds too much risk to the transaction," says Alistair Calvert, a London-based partner with Northcliffe Asset Management Ltd., an investment firm specializing in sale-and-leaseback transactions.

So now that Germany has sacrificed it ruling class to banker interests, and Europe knows all too well just who is calling the shots, the ball is back in Greek court:

Whatever the next step is in Greece's plan to privatize public real estate, all eyes will be on how Athens handles the first deals that come to market.

"It is extremely important that they get the first couple of projects right," Ms. Agapitidou said. "If the first projects go well, the interest of international investors will increase."

Oh they will get the first projects fine, all right. After all it is JPM, GS, BAC, Citi, UBS, RBS, RBC, CITI, DB et al that are preparing the CIMs that will be ultimately presented to, and used by, individuals at JPM, GS, BAC, Citi, UBS, RBS, RBC, CITI and DB.

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Atomizer's picture

We have already watched this movie before. This rings deja vu of Dubai crisis.

In case you forgot..

Manthong's picture

In accordance with my PM investment themes, I wish to place a bid for the Silver Moon Bar in Ag. Stefanos.

TradingJoe's picture

For the "right",( IMF discounted :)) ) price, I'll buy Zakynthos any day!

Duuude's picture


Heh heh heh...


Fedophile's picture

Please excuse my naivete, but how do I short Greece and the EUR?

Brian's picture

Here's a link to a short article on how to short the EUR through an ETF:

traderjoe's picture

As a reformed deflationista - I would argue the only short that makes sense with all the money printing is to buy gold, silver, and other applicable hard assets. I have serious questions about whether you'll get paid as a short when the SHTF, and even if you do, it'll be in confetti currency.

mccoyspace's picture

The eft EUO is a Euro short fund.

But of course the Euro is surging with all of these wonderful "developments."

scatterbrains's picture

so when it's all said and done and the pigmen own all of Greece's best assets I should go on vacation there spending my hard currency knowing that the proceeds will funnel back to the pigmen ? That sounds as enjoyable to me as booking a vacation to the BP spill platform.  Iceland is sounding more and more like a vacation oasis to me.

Rodent Freikorps's picture

Why do you all blame banks?

It takes a government to fuck things up so badly that even the proles are moved to outrage.

Banks didn't bail themselves out.

Shell Game's picture

You're right, we shouldn't despise Frankenstein, we should despise Dr. Frankenstein..

I'm a deep believer in the goal of free markets and capitalism.  But, my friend, these are Not banks.  They are corporatized weapons of mass looting and deserve no defense.  End the iBanks, end this .gov

Rynak's picture

False dilemma. The choice is not necessarily "either-or".

Thomas's picture

There is no problem that is so large, so onerous that government cannot make it worse."

paraphrased from Henry Morgenthau

carbonmutant's picture

"Any problem can be solved with a sufficient application of high explosives."

Rodent Freikorps's picture

I'm gonna remember that when they ask me how to fix welfare.

MisterMousePotato's picture

Actually, a belt fed weapon is the ticket.

HamyWanger's picture

Hilarious. Like I said. No restructuring. Greece will be entirely looted, and Greeks will never revolt, because if they were going to do it, it would have already been done a long time ago. 

Pigmen: 1

Goldbugs: 0

Eally Ucked's picture

Partially right



chump666's picture

And their gift to the people of Greece...a higher oil price.

Place your bets for complete Greek turmoil (and the rest of Europe)

Hulk's picture

Correction Hamy:

Pigmen: 1

Goldbugs: 1533

Problem Is's picture

Fiat:Gold = 1:1,533

Nice call Hulk...

dolly madison's picture

The world will revolt, and the greek will be among them.  Just wait and see.


Barb Dwire's picture

Don't laugh. Soon the US will be trying to sell a bridge to Brooklyn. Many times.

edotabin's picture

Fractional bridge investment theory?

Canucklehead's picture

...So now that Germany has sacrificed it ruling class to banker interests, and Europe knows all too well just who is calling the shots, the ball is back in Greek court...

The European banks are the aristocracy, the oligarchs, the nobility, etc.  The old royal families don't own businesses, they own european banks or they are invested in hedge funds (Soros).  The major problem is too many small european banks competing for business, prestige, political influence, etc...

This unravelling of competing interests should be interesting.

nah's picture

ok im stupid what is growth

mynhair's picture

When do they allow the US bailout?

O/T, which repubes are voting yea on the ceiling raise?

Update: was 2 for yea, now just 1.

Update 2:  that one got bitch slapped into NV

Rainman's picture

Asset sale..great idea....Kali can sell Catalina Island and nobody would notice. Alcatraz next. Store this strategy into memory for Jerry's garage sale. Start with the islands.

southsea13's picture

Although the Acropolis has seen better(?!) days, do not be surprised if it undergoes a massive `revamp` (we`re talking full auto-shading glass to reflect the fierce Greek summer temperatures, complete with environment-caning air-con. Also, Greek, Hungarian and Russian `hotties` will be brought in to walk around as toga-clad domestic servants. No doubt tasteful Roman-style baths will also be installed (powered by genuine Greek indentured wage-slaves to keep the hypocausts up and running); there will be other sundry luxuries in keeping with the whole `antiquity` theme).

Group bookings welcome at $10,000 per person per night; special discounts for Bilderberg members.  

Lord Welligton's picture

Does the Greek government "own" any islands?

donde1's picture

What a great question. 

Does the Greek government work for the people? Which would mean the people own the islands. Right?

darteaus's picture

The only change I'd suggest is to substitute the term "European politicians" in place of "European governments".  It's the greed of individual politicans that is, by far, the great destroyer.

Amish Hacker's picture

A fine point, darteaus, but perhaps a valid one. Ambrose Bierce defined politics as "the conduct of public affairs for private advantage." As for greed and perfidy at the individual level, that's been the rule ever since Adam and Eve got dressed.

duncecap rack's picture

Can this be blocked by the true Finns or other dissenting parties?

ISEEIT's picture

When nice guys like me feel like vomiting, it's already to late. So genocide only counts if there is blood eh?

Bullshit. The EUR evil is a takedown of culture. It is a takedown of individuals. It is a takedown of free people. Don't let yourselves be raped like this. We would have helped you in a better time. I so adored and envied you sweet people in Amsterdam and Wiesbaden. I was in awe of your maturity. There I was, a dumb punk American soldier. Had no idea of empire. I was just 22 years old.

I aplogize and I hope you fight back.

I need to go take a shower now. Yuk!

Rodent Freikorps's picture

No kidding. You need to wash the shit off your nose. Could you be any lamer?

Eally Ucked's picture

You should join the ritual wash because you have shit all over you, can't you smell it?

Rodent Freikorps's picture

I don't smell like shit.

That is your upper lip. Fix yourself.

Eally Ucked's picture

You cannot smell anything that means you have some problems. Think about it.



Eally Ucked's picture

You can smell me? You must be an expert on sniffing asses. Good luck on your carrier, have more asses to apply your senses to.

Rodent Freikorps's picture

I'll accept your lameness as surrender.

Matto's picture

How's being a total penis going for you?

Rodent Freikorps's picture

Chicks dig me. What other measure is there?

Eally Ucked's picture

Really? They're going for you? I have to believe it if you say so


Bananamerican's picture

"chicks dig me." mean like "real chickens" don't you!!!?

Hephasteus's picture

Men who want to succeed with women hear about this "alpha male" idea, and decide that they need to become more "alpha."

They figure that if they can just be the "top dog" among men, they’ll get the women they desire.

And they figure that the way to do this is to push around other men, act tough, and to generally become a world-class jerk.

They think a lot about "being alpha" and "appearing alpha." They worry about it. They argue about it on internet discussion boards.

But it’s all a trap.

You see, if you spend your time worrying about being "alpha," and have tried to push other guys down...

Then you are NOT an "alpha male."

There’s an actual, scientific name for what you’ve become. That name is:

"Alpha wanna-be."