Rumor Of Greek Default As Early As This Weekend Pushing Yen

Tyler Durden's picture

The various Yen funding crosses have suddenly seen a bit of a hiccup (but fear not: it only means far greater USD shorting instead) following a rumor that Greece may default as early as this weekend. While we think there is absolutely no possibility of that happening, a far more interesting piece of news comes from Finland, where the recent electoral upstart Soini from the True Finns party has said that the May EcoFin meeting would discuss an "entirely different" solution to the debt crisis, than the previous one. Specifically, he was quoted by Reuters as saying the best solution would be one of bank recapitalization whereby banks, and not taxpayers, bear liability. Is Europe about to pull the plug on taxpayer funded bailout for good? And if so, does the European financial system have enough a buffer to absorb what will certainly be hundreds of billions in capital shortfall. Looks like May is shaping up to be another rescue Europe month... just like last year.

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SheepDog-One's picture

I actually hope for plunging dollar at this point, the sooner the better. If you have a bad toothache I dont sit hoping it will go away, get it taken care of now. Bad FRN, BAD!

BTW I thought just 2 days ago Greece was deemed A-OK status for another 6 months at least?

bigelkhorn's picture

that is true I guess.

Damn you guys noticing some storms coming over your place. 


I just Had a look at the FFT guys. And they are predicting a big set of tornados to come.

They have been VERY SPOT ON in the past...and say : "Expect it to be very bad over the next couple of days in the US mid-west, south and maybe even up toward the Canadian borders.  At least one F-5 will come out of this, maybe more than one"

Stay safe people. MIght get rough.


French Frog's picture

For sure, if this happens, then it will be announced once the markets have closed for Easter...

TheGreatPonzi's picture

But, but, Leo Kolivakis told me that "Greeks own you", and that Greek bonds were a buy. 

Cookie's picture

haha...last year Leo was bleating Greek 10 year bonds were a screaming buy at 7%

jus_lite_reading's picture

Greek are very patriotic liars. Buy Greek bonds always and forever... LMAO

samseau's picture

Leo said there'd be no more bailouts

vote_libertarian_party's picture

So does this trigger the derivatives dominos?

SheepDog-One's picture

Somethings about to get triggered certainly. How long can this utter insanity keep getting swept under the rug as 'nothing to see here, all normal, move along folks'...this is just retarded and we all know you never go full retard. Been full retard for over 2 years now.

Sudden Debt's picture

if new ones where created to counter the losses to the first, we might not even notice.... for about 1 week.

The inflation numbers in 6 months will tell us.


SheepDog-One's picture

OH right...holding pattern for 6 months, then we'll know sumpin.

Sudden Debt's picture

if counter derivatives where created, hughe euro flows would be created after the default.

And when that money would hit the market it would cause a massive inflation.

but it takes some time to notice and the money to make it's way arround the system.


Sudden Debt's picture

That would be absurd. Unless they already planned on doing so 4 month ago and everybody got time to protect some investments.

Otherwise the euro collapse comes very close.



Racer's picture

US outlook downgraded, Greek default... buy shares.... they will only go up with all this horrific news

Sudden Debt's picture

if you think about it: Name 2 weeks in the last 12 months that didn't show bad/horrific economic news.

and the markets couldn't care less.

untill the pomo drops dead...


writingsonthewall's picture

Nobody is investing through choice - they are all investing through fear.


In the meantime - I hope all you technofreaks bought yourselves and IPhone - so you can be tracked wherever you go.....


Whoops - did nobody mention this in the sales blurb?


Remember - "If you've done nothing wrong, then you have nothing to hide" We just like to know where you are at all times...

Sudden Debt's picture

For the Ipad is actually was in the sales pitch :)

You can track your salesforce without them knowing.

My boss was convinced in less than 5 seconds :)


The Count's picture

Did it really take a small European county like Finland to finally tell the powers that be that the matrix like illusion and con of the Euro and EU will not go on indefinitely?

However, I wonder if the True Fin party can really fulfill their campaign promises because the powers that be do not give in easily nor do they play nice.




A Man without Qualities's picture

As Soviet Russia and Nazi Germany discovered in WWII, don't fuck with the Fins.


Somebody has to call a stop to the insanity.  We simply have a banking sector which has outgrown the underlying economy and have leveraged themselves to cover diminishing returns on capital, without proper regard for the quality of the lending.  Why the banks should be fully compensated for their mistakes is inexplicable unless you assume this is a totalitarian system, where the bank bond holders write all the laws....



Dr. No's picture

You have to look for smaller countries for leadership.  Iceland, Finland.  Large countries are ruled by a plurality and just chase their tail.

froghat's picture

I just passed gas and thought of Ben Bernanke

Magic Mamaliga's picture

now you've done it... why would you ruin a good thing for me, now I will think of the Bernanke when i fart... you bastard!!!

RobotTrader's picture

Wells Fargo getting completely destroyed.

Heh, they are dumping the banks and piling into the chips today.

Magic Mamaliga's picture

"they" are piling into chips because you keep frying yours with your analysis.


dogismyth's picture

i'll believe it when it happens, otherwise the news is all bullshit.

writingsonthewall's picture

Sorry, which part of 'Greece defaulting' hasn't already come true?


They are frozen out of bond markets and the ECB cannot bail them out forever. Surely we're just waiting for the paperwork to complete on the default?


This is going to be the most expected announcement since Octomom announced her TV and magazine deal.


Any bondholders who think they are not about to get stuffed are either detached from reality or they canot afford to believe anything else. I suspect the European banks sitting on this pile of crap are from the latter camp.

hugovanderbubble's picture

This market is permabullish , Greek case wont affect to Bernanke&Geithner Plans.

whstlblwr's picture

This comment not related to topic at all.

Big banks buy all our politicians now, it’s why Obama saved banks.

Wall Street Banks buy candidates.

So far no candidates talking about corporate money problem in elections. Many them bought by corporations. If corporations buy candidates, their stock go up. Corporations don’t like real Teaparty

House speaker Boehner bought by banks and energy company.

Anyone in Zero Hedge to run in his district? Let’s vote him out.

Ohio’s 8th District includes all of Darke, Miami, and Preble counties, most of Butler and Mercer counties, and the northeastern corner of Montgomery County.

Alec Baldwin pansy for Obama now, but he speak about elections for people not corporations.

The bill would allow federal candidates to choose to run for office without relying on large contributions, big money bundlers, or donations from lobbyists, and would be freed from the constant fundraising in order to focus on what people in their communities want.

(Sorry long post, I’ll post several threads)

Urban Redneck's picture

So incumbent candidates, with party machines to gather the required signatures, no longer have to bother pandering to their petty constituents, and have more time to meet with their corporate masters, since the taxpayers is fucked with the bill for their re-election campaigns.  No Thank you.

whstlblwr's picture

You rather let Goldman Sachs pick up bill and US government do their bidding. You like Obama pandering his petty constituent Goldman Sachs. You must be urban redneck lobbyist, I think.

Urban Redneck's picture

GS can buy any political whore they choose regardless of how elections are "structured", so can any other multinational.  Anyone who thinks the proposed text of that bill is going to change that fact is utterly naive.  Why should my tax dollars go to reduce GS' lobbying bill?   

Misean's picture

Whistling past the Credit Anstalt graveyard.

alien-IQ's picture

Well if the US is any indicator, a Greek default should mean their market will soar to multi year highs yes?

HedgeFundLIVE's picture

yes, europe is due for another screw session. but these markets don't give a flying f.  let em rip:

redpill's picture

One of the largest holders of Greek bonds is the public employee pension system there, correct?

Dejean Splicer's picture

Check this out if you have a minute. Brilliant analysis.

These weather modification will surely have and affect on the economy.

dogismyth's picture

I watch that guy religiously.  He's spot on with his analyses thus far.

Dick Darlington's picture

Outgoing Finnnish prime minister Kiviniemi said today she will not present the portuguese bail out package to parliament and added that it's the job of the new government. So she's washing her hands out of this mess. Finance minister Katainen tried to do the bail out through back door but after the comment from prime minister Kiviniemi it seems that Katainen will be thrown to the lions as both Social Democrats and True Finns are opposing these endless bail outs and the negotiations in forming the new govt will be between those three, at least in the beginning. If they can't sort out some kind of an agreement, all bets are off who will end up forming the new govt in the end.

Itsalie's picture

Ok, so Greece might default in May, but that won't stop the toilet paper greenback from going further down towards ground zero in June or July, nor will risk assets stop rising, the printers must be allowed to print, QE3 will be here. And the Finns in May? They'll get  their time in front of the TV cameras for a week soon, but after that they will get slapped down just like Ireland's new leaders, and kicking-the-can-down-the-road resumes in euroland. Risk assets will surge ahead, the chinese will pump harder and buy up the whole of Spain's 50b issuance this year to ensure their internal political succession take place with no F%#$-up; then they might just implode, probably 2012.

alien-IQ's picture

$DXY currently 1 cent above Dec. 2009 low. Critical support level is 74.266...below that there's nothing but air until 72...this is gonna get ugly.

Itsalie's picture

Ok, so Greece might default in May, but that won't stop the toilet paper greenback from going further down towards ground zero in June or July, nor will risk assets stop rising, the printers must be allowed to print, QE3 will be here. And the Finns in May? They'll get  their time in front of the TV cameras for a week soon, but after that they will get slapped down just like Ireland's new leaders, and kicking-the-can-down-the-road resumes in euroland. Risk assets will surge ahead, the chinese will pump harder and buy up the whole of Spain's 50b issuance this year to ensure their internal political succession take place with no F%#$-up; then they might just implode, probably 2012.

Dick Darlington's picture

Seems that there's still no love for bail outs in Slovakia either. They were the only rational player before and refused to participate in the Greek 110 bn package.

04-20 10:17: Slovakia's SaS party won't back Slovakia's participation in new bailout fund
Paper CRUSHer's picture

The default can be avoided for a while longer by following this recent example from Toulouse(France). Its been demonstrated that its entirely possible for nation to sell that stuff ya accidentally stepped on for $'s.

From Bloomberger:

Monetizing Dog Poop

*As Fabre tells it, Toulouse’s scatological action plan to clean up the mess and turn squalor into dollars began when he in 2009 created France’s first “Office of Tranquility.” The city’s official grievance bureau in its first two years received more than 600,000 calls.

The majority of the people complained about dog merde,” Fabre says. “We have seven dog parks, but the dogs refused to use them.”

Historical research showed that it wouldn’t be easy or pleasant to monetize dog droppings. The only successful venture in this field took place in Victorian England, when the homeless wandered city streets to collect what was then called “pure” or “scitan” (a noun in which the “sc” is pronounced “sh”) for use in tanning leather.

Fabre says solving the problem required a fresh strategy. He called Cabanes and their government-private sector partnership was born. The duo immediately decided to attack the dilemma from the rear.

“Everyone was looking in the wrong direction for an answer,” says Fabre, who began his veterinary career working with goats in Africa. “It’s not the dog owner who chooses the place his dog will poop. It’s the dog who makes the decision and it required a lot of deep thought and analysis to get the dog owners of Toulouse to realize it.” *

.....Who said shit ain't worth nothin'

Greyzone's picture

The Fed is now rumored to be actively shorting Greece. Leo better get out of the way of the 800 pound gorilla before he gets stomped.

scratch_and_sniff's picture

Even still, if there were no rumours i would still find it hard to believe that ordinary traders want to hold Euro over the long weekend at these levels...heres hoping it rolls over and dies, it has crucified me these past 2 days and i am positioned suicide style. Should have known better though, it would take the gates of hell to open for this pantomime to stop. I suppose its what happens when you look at the facts.

jmc8888's picture

Bait and Switch, they don't have the capital to do it.  So more accounting tricks, to pay off fraudulent debt, and JCJ's horse is gaining steam on the race to the currency bottom.  I hear they hired BALCO labs (Barry Bonds) for the uh, horse training.

People still get screwed with a weaker currency. 

How would the Germans feel about this?


bothsidesnow's picture

Greece is Psy Ops for the real problems, who really cares, do they really contribute that much to the GDP of the world. Look at the numbers for the heart of the Eurozone, France and Germany, all stellar showing a growing economy, that;s why ECB can raise rates. How much of an impact can Greece defaulitng really have? How much debt are we talking about - real debt - not notional value of the x derivative. The Morgue spends that much each week trying to bitch slap the PM's.

If Greece defaults DXY rallies off of low so I wouldn't pray for Greece defaulting if your holding commodities.

Let them default so we can move on from this long-running Greek tragedy!