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TCW On Greece: "Let It Burn"

Tyler Durden's picture





 

TCW, which incidentally is facing some pretty serious problems of its own lately, chimes in on Greece. Komal Sri-Kumar, Chief Global Strategist, is painfully realistic in believing that Europe should be much more worried about keeping the strength of the eurozone intact, and if that means jettisoning Greece, and devastating the euro, so be it. In fact, for an export-heavy Germany, this is precisely, as Zero Hedge has long been claiming, the end goal.

 

 


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Sun, 02/28/2010 - 13:06 | Link to Comment bugs_
bugs_'s picture

"Let it burn" - the solution to sooo many things!

Sun, 02/28/2010 - 13:51 | Link to Comment Crab Cake
Crab Cake's picture

Washington DC and the Fed banks?

Sun, 02/28/2010 - 20:58 | Link to Comment Anonymous
Sun, 02/28/2010 - 20:48 | Link to Comment Anonymous
Sun, 02/28/2010 - 21:31 | Link to Comment Dirtt
Dirtt's picture

Phuck Greece. And California.

Live by the phucking labor entitlement sword DIE BY IT TOO!!!!!!!

Sun, 02/28/2010 - 21:52 | Link to Comment jmc8888
jmc8888's picture

labor entitlement is not what is causing the problem. 

They system is broken, and unless magical ben prints, everyone starting from the weakest link, on, (until and beyond strong links are the weakest link) the system is going to crush it.

It wasn't labor entitlement. 

Only difference IN THIS SYSTEM, between California and Greece to the most low tax, low entitlement, low public spending, sweatshop areas being in the same boat? 

 

Time.  (and it wasn't one that caused the other)

Sun, 02/28/2010 - 22:21 | Link to Comment Anonymous
Mon, 03/01/2010 - 06:29 | Link to Comment Anonymous
Sun, 02/28/2010 - 13:12 | Link to Comment buzzsaw99
buzzsaw99's picture

The odds that the fed will end up owning Greek bonds exponentially increases with the amount owned by GS or insured by AIG (etc.). As for bailing out Greece proper I really don't care what the EU does.

Sun, 02/28/2010 - 23:38 | Link to Comment Rusty_Shackleford
Rusty_Shackleford's picture

Well said.

Sun, 02/28/2010 - 13:20 | Link to Comment Anonymous
Sun, 02/28/2010 - 16:08 | Link to Comment Anonymous
Sun, 02/28/2010 - 23:24 | Link to Comment agrotera
agrotera's picture

BRAVO!!!!!

HEAR-HEAR ANONY!!!

Sun, 02/28/2010 - 23:41 | Link to Comment Anonymous
Mon, 03/01/2010 - 03:09 | Link to Comment Anonymous
Mon, 03/01/2010 - 09:20 | Link to Comment Anonymous
Sun, 02/28/2010 - 22:08 | Link to Comment Anonymous
Sun, 02/28/2010 - 13:20 | Link to Comment putbuyer
putbuyer's picture

The more the plans fail, the more the planners plan. Venus's tit has run dry. Good bye Greece.

Sun, 02/28/2010 - 13:22 | Link to Comment Fielding Mellish
Fielding Mellish's picture

Trichet goes to bed with a smile on his face every night.  Weaker Euro?  That's what Europe has been praying for.

Greece is Europe's Iran.  A very, very convenient bogey man...with an economy in the same proportion to to Europe's as Utah to the United States.

Not "Let it burn".  Much too quick.  "Let it smoulder"  Just like Iran.

Sun, 02/28/2010 - 23:56 | Link to Comment jeff montanye
jeff montanye's picture

subtle and intriguing. if only the lemonade made from an unexpected lemon.

Sun, 02/28/2010 - 13:26 | Link to Comment seventree
seventree's picture

... one of the acknowledged strengths of the U.S. system: the ability of the U.S. Fed and the U.S. Treasury to coordinate monetary and fiscal policy, both in good times and bad.

A powerful force certainly. A strength if used wisely and with moderation and clear vision. It remains to be seen which suffers more: the US with its ability to deny reality, or a Eurozone forced to confront it, fail painfully, and start again.

Sun, 02/28/2010 - 13:28 | Link to Comment john_connor
john_connor's picture

I see the Euro going down either way, ie Greek bailout or no Greek bailout.

All of this talk is just conjecture and bs. 

Sun, 02/28/2010 - 19:35 | Link to Comment 35Pete
35Pete's picture

I see the US (that'd be the government, not us slaves) salivating over a crashing Euro and Pound. 

They'll do QE2 on the back of it and stealthily destroy our savings and earning power to continue doling out the swag from Washington. Then they'll point to the DXY at 73 (where with a valued Euro and Pound it'd be at 42, LOL) and say "Hey, it's been worse! We'll get past this you doomsayers". 

Sun, 02/28/2010 - 13:33 | Link to Comment Reflexivity
Reflexivity's picture

From: WJS - Hedge Funds Try 'Career Trade' Against Euro*

"This is an opportunity...to make a lot of money," says Hans Hufschmid, a former senior Salomon Brothers executive who now runs GlobeOp Financial Services SA, a hedge-fund administrator in London and New York."

Who else is going to make a career trade on the Euro if Greece "burns"?

 

* http://online.wsj.com/article/SB1000142405274870379500457508774184807439...

 

Sun, 02/28/2010 - 13:58 | Link to Comment arnoldsimage
arnoldsimage's picture

i always believe in trades that are made public. sort of along the lines of, how easy it will be for the rich to enter the kingdom of heaven.

Sun, 02/28/2010 - 14:31 | Link to Comment Reflexivity
Reflexivity's picture

So, it's easier for a camel to go through the eye of a needle than for a man to make money on a publicly disclosed trade?

Sun, 02/28/2010 - 15:25 | Link to Comment 35Pete
35Pete's picture

Yes. I believe that's in Lloyd, chapter 6, verse 5. 

Sun, 02/28/2010 - 15:46 | Link to Comment CombustibleAssets
CombustibleAssets's picture

You mean it's easier to enter heaven  if the trades are not disclosed...

 

Sun, 02/28/2010 - 13:59 | Link to Comment Anonymous
Sun, 02/28/2010 - 23:46 | Link to Comment agrotera
agrotera's picture

I dont think Paulson was the only one who expected it, but he was the one who traded on it most successfully.  And now, with all the manipulations and rigging going on, it is too risky to get behind any huge bets.

Sun, 02/28/2010 - 13:34 | Link to Comment Anonymous
Sun, 02/28/2010 - 14:38 | Link to Comment Bylinka (not verified)
Sun, 02/28/2010 - 18:03 | Link to Comment SWRichmond
SWRichmond's picture

Wild speculation follows:

When the history of this crash is written by scholars far enough in the future that their views aren't colored by current exposure to news, Iceland will be shown to be the noise that started the sovereign avalance.  It is Iceland that has killed British banks.  And when British bank zombification ends, the U.S. Treasury market starts to bleed out, and that is the end of Western banking hegemony.

Wed, 03/03/2010 - 14:23 | Link to Comment SWRichmond
SWRichmond's picture

This is IMO significant evidence of the Western banking cartel trying to hang on to its hegemony over the global economic system:

http://jessescrossroadscafe.blogspot.com/2010/03/england-to-sell-3-year-...

US and BG banks are joined at the hip.  London and NYC are joined at the hip.  The LBMA and CRIMEX are joined at the hip.

Sun, 02/28/2010 - 21:39 | Link to Comment lovejoy
lovejoy's picture

And California is only at 2% of state GDP. So Leo what is the problem

Sun, 02/28/2010 - 13:59 | Link to Comment Leo Kolivakis
Leo Kolivakis's picture

Greece is peanuts compared to what is going on in California, New York and New Jersey. Even here is Canada, the province of Quebec is among most highly indebted industrial economies in the world (HT: Al):

An analysis by the Quebec Ministry of Finance suggests the province has one of the most heavily indebted economies in the industrialized world.

The 44-page document calculates the province's total debt as 94 per cent of GDP, employing methods used by the Organization of Economic Co-operation and Development.

The government report, available on the ministry's website, compares the total provincial public debt to that of other Canadian provinces and to major industrialized nations.

Quebec ranks only below Japan, Italy, Greece and Iceland in terms of public debt as a percentage of GDP.

The report calculates public debt across Canada as 69.7 per cent of the country's GDP.

The report puts Quebec's total public debt at $285.6-billion.

Sun, 02/28/2010 - 14:09 | Link to Comment john_connor
john_connor's picture

Re: US States, don't forgot about Illinois and Arizona.  Illinois is on the brink, immediately behind California.

Sun, 02/28/2010 - 14:30 | Link to Comment geminiRX
geminiRX's picture

Every province in Canada is sucking Alberta's tit.....and therefore Quebec will remain just fine

Sun, 02/28/2010 - 14:33 | Link to Comment Ted K
Ted K's picture

I went to Quebec once,  I got pulled over by a DOT (or whatever their version of a transportation official is) guy and was given roughly a $255 ticket because I was a "fernor" and hadn't scribbled two lines in a logbook.  Everyone there can speak English but they all pretend they can't.  You think the colossal d#*kheads are rethinking that whole secession thing now??? I know if I was in any other province to Quebec I would wish the cultural snob xenophobe pricks had gone ahead and left

Sun, 02/28/2010 - 15:14 | Link to Comment Harbourcity
Harbourcity's picture

This will change as the Quebec elitist population dies off.

Sun, 02/28/2010 - 20:38 | Link to Comment Anonymous
Sun, 02/28/2010 - 23:51 | Link to Comment Rusty_Shackleford
Rusty_Shackleford's picture

Well played.

 

 

...Who do you trust when everyone's a crook?...

Mon, 03/01/2010 - 00:26 | Link to Comment Anonymous
Mon, 03/01/2010 - 06:37 | Link to Comment Anonymous
Sun, 02/28/2010 - 14:05 | Link to Comment CEOoftheSOFA
CEOoftheSOFA's picture

I've never been in Greece, but I have been in Cyprus a bunch of times, where the people are extremely proud to be ethnic Greek.  I've been asking the Cypriots if they would like to unify their country with Greece and the response has always been a resounding "NO".  Their opinion is that Greece is a backward socialist haven, and I have to agree.  If they default on their debt, it could be the wake-up call they need to snap out of it.  

The U.S. should be so lucky.  We have so many ways that we can postpone the crisis, by the time the s#@$ hits the fan we will plunge the whole globe into a crisis.

 

Sun, 02/28/2010 - 14:06 | Link to Comment Anonymous
Sun, 02/28/2010 - 14:09 | Link to Comment CB
CB's picture

imprudence deserves failure

Sun, 02/28/2010 - 15:14 | Link to Comment Landrew
Landrew's picture

Hi CB, your avatar icon is killing me! I have been trying to figure out what it is for weeks. What is it? Strangely subliminally unnerving ha!

Sun, 02/28/2010 - 17:32 | Link to Comment CB
CB's picture

Hey Landrew.  To be quite sure, I am not sure  because I didn't save the source of the photo back in the fall when I signed up on ZH.

Sun, 02/28/2010 - 20:44 | Link to Comment wake the roach
wake the roach's picture

A half human, half ram taking a cold shower...

Mon, 03/01/2010 - 00:02 | Link to Comment Rusty_Shackleford
Rusty_Shackleford's picture

It's "Darkness" from the movie Legend after he's had his horns cut off and spent 2 years in a FEMA camp.

He's standing behind a frosted glass door taking an ice-water shower as he ponders and finally learns to accept that his prior pretensions of relevance and meaning are but so many fragile, illusory constructs which crumble like sandcastles in the face of the universe's utter indifference to his plight.

His suffering is far from over....

Sun, 02/28/2010 - 14:10 | Link to Comment Anonymous
Sun, 02/28/2010 - 14:20 | Link to Comment Leo Kolivakis
Leo Kolivakis's picture

Greek Deputy Prime Minister Theodoros Pangalos has accused Germany of failing to compensate Greece for Nazi occupation during World War II (see BBC clip below). I think this is a red herring that serves no purpose whatsoever. While there is some truth to what Pangalos said, the fact remains that successive Greek governments took in billions of euros and never built up Greece's industrial base or help the service economy diversify away from tourism and shipping. They were all very corrupt, very stupid and now the real estate market is starting to weaken. A buddy of mine in Athens (very pessimistic) thinks Greece should default because at least then they can negotiate on their debt. Of course, if this happens, overnight euros will become drachmas, which is a scary thought for many as they will be instantly impoverished. I doubt this will happen. the stakes are too high to "let Greece burn".

 

Sun, 02/28/2010 - 14:28 | Link to Comment Anonymous
Sun, 02/28/2010 - 14:14 | Link to Comment Anonymous
Sun, 02/28/2010 - 14:22 | Link to Comment GoldSilverDoc
GoldSilverDoc's picture

My Greek wife is funny.  Her comment, which sums up what she thinks is everybody's opinon of Greek business is.... "Think about it.  Who in their right mind would ever go to a Greek banker?  Greeks like to drink coffee and play tavli.  We still think it is 3000 years ago, and everybody ought to just recognize all we did for the world, and pay us to sit around and think some more."

 

Sun, 02/28/2010 - 23:59 | Link to Comment agrotera
agrotera's picture

GoldSilverDoc--pls tell your wife that i agree!!!

Sun, 02/28/2010 - 14:29 | Link to Comment Anonymous
Sun, 02/28/2010 - 14:38 | Link to Comment Gunther
Gunther's picture

If my memory serves correctly, there were, at the time of introducing the common Euro currency, statements that needed economic reforms were politically not feasible. Economic pain was supposed to push the needed reforms through.
It looks like now is the time to prove that concept.

Sun, 02/28/2010 - 14:43 | Link to Comment Anonymous
Sun, 02/28/2010 - 14:48 | Link to Comment MarketTruth
MarketTruth's picture

Eh, it's all Greek to me   ;-)
(Surprised no one else on ZH has said this yet)

Seriously, someone has to bail them out or it will be Lehmann time for th Euro as the Euro, like the USD is based on FAITH and backed by very little of actual substance. Just wait until Calif and quite a few other States drop the financial bomb.

Got gold?
(Greece crying about the Germans taking theirs says a lot about why one should have physical gold holdings.)

 

Sun, 02/28/2010 - 17:23 | Link to Comment Hulk
Hulk's picture

Greece can be bailed out, but what about the countries qued up behind Greece?
Eastern Europe is also in horrible shape.
Prof Black,who is consulting Hungary and is one of the few academics I trust, stated last summer that every single home in Hungary is in
default and that Hungary will default on its debt.Haven't heard about Eastern Europe for
a while.The magnitude of the world insolvency
is stunning, but for some reason, we get focused on one little country..
"Got Gold?"
Yep, lots of PM, own physical. If I didn't
own physical, I don't believe I would be able to sleep at night

Long Au
Long Ag
Long complex CH4 chains
Long CREE (for now)
Short Solars, greatest wealth destroying technology ever created...

Sun, 02/28/2010 - 20:50 | Link to Comment Hulk
Hulk's picture

Yep, those guys.
http://www.cree.com/
http://money.cnn.com/quote/quote.html?symb=CREE
Look at the 1 year performance..
I installed CREE led lighting in the kitchen
a year and 4 months ago and have been hooked
ever since
CREE recently broke 200 watts/Lumen and,
IMHO, have excellent R&D
LED lighting is the future, very low power consumption and EXTREMELY long life, 20k to
50k hours.
Look for entire parking lots to be LED lighted,triggered on motion sensors
Disclosure: Long CREE

Mon, 03/01/2010 - 00:10 | Link to Comment Rusty_Shackleford
Rusty_Shackleford's picture

Have a Fenix TK12 with CREE's R2 LED on all of my tactical carbines and shotguns. 

Absolutely fantastic light. 240 blinding lumens, bulletproof construction, and under $100.

Can't say enough about it.

http://www.4sevens.com/product_info.php?cPath=22_85&products_id=650

Sun, 02/28/2010 - 14:50 | Link to Comment 10044
10044's picture

Yeah but the thing is, every time there is a "problem", the [un]safe haven dollar goes up even with problems in ca and ny. But I think gold is decoupling from all that

Sun, 02/28/2010 - 14:57 | Link to Comment Fishing Chimps
Fishing Chimps's picture

Sure, let Greece go. Lehman wasn't enough.

Sun, 02/28/2010 - 15:14 | Link to Comment 10044
10044's picture

so you want to them to repay their visa bill with their mastercard??

Sun, 02/28/2010 - 15:05 | Link to Comment Anonymous
Sun, 02/28/2010 - 19:22 | Link to Comment bchbum
bchbum's picture

Blow me.  I've been to over 40 countries and I don't understand what you are trying to say.

Mon, 03/01/2010 - 00:11 | Link to Comment jeff montanye
jeff montanye's picture

but you've got to like "glibberish".  that is the native language of the village and it is what the elites speak to us.

Sun, 02/28/2010 - 15:17 | Link to Comment Captain Willard
Captain Willard's picture

Well, we need to apply some Game Theory here, as the Greeks have just set up an enormous game of Chicken. Where is the Nash equilibrium in this situation? It seems pretty clear to me that a default is a "lose-lose".

The "win-win" is where the Greeks agree to IMF-monitored austerity and "truth and reconciliation" in exchange for a bailout that will limit the contagion. Having seen the precedent, Spain and Portugal would presumably have a model on which to go forward.

After all the noise, this is where we will end up. Of course, the theater is highly amusing.

Sun, 02/28/2010 - 15:32 | Link to Comment Landrew
Landrew's picture

I disagree! The win is default and currency devaluation. The last country to devalue is the loser and by default (pun intended) that would be the U.S. as the biggest loser being currency/bankers of last resort! In the end game, you have to ask who will be the savior of the system and the Fed has pretended to be that savior since 1937 when the rest of the world burned.

Mon, 03/01/2010 - 00:19 | Link to Comment jeff montanye
jeff montanye's picture

something in what you say.  and, yet one more time, the irony, the irony:  j. m. keynes wrote some eighty years ago that nation states, in order to ameliorate deflationary depressions, should reduce debt/build surpluses in times of plenty so as to increase debt/reduce surpluses in times of famine.  our economic masters are so wonderful that they have increased debt/reduced surpluses in times of plenty to such a degree that the private markets, and possibly some of the voters, will force them to reduce debt/increase surpluses in a time of famine.  in the u.s. the primary perps were "conservative" republicans.  mr. keynes is rotflhao.

Mon, 03/01/2010 - 06:47 | Link to Comment Anonymous
Sun, 02/28/2010 - 15:52 | Link to Comment CombustibleAssets
CombustibleAssets's picture

Greeks will go the way of Argentina...

Sun, 02/28/2010 - 16:48 | Link to Comment htp
htp's picture

Greece is just the front line flashing point in the battle between US and Europe. Both are in deep financial trouble. Both are trying desperately to shore up its currency amid quantitative easing. Any decline in the perceived strength of the euro would enable the Fed to print some more safely.

 

If the Greek saga does not end the euro as a competitor to the dollar, look for the Wall Street dominated financial media to whip up more soverign debt crisis in Europe. Long standing alliance between US and Europe since beginning of the Cold War may be coming to an end.

Mon, 03/01/2010 - 06:50 | Link to Comment Anonymous
Sun, 02/28/2010 - 16:55 | Link to Comment Anonymous
Sun, 02/28/2010 - 17:32 | Link to Comment RobotTrader
RobotTrader's picture

A further Euro collapse will simply make European and Mediterranean call girls even more affordable and desireable to the following:

1.   U.S. Prop Desk Traders

2.   Russian Oligarchs

3.   Beverly Hills plastic surgeons

4.   New York politicians

5.   Bank of Japan and Ministry of Finance plutocrats

6.   Any and all assorted international playboys located outside the Eurozone.

 

LOL...

 

"Throw Greece out??  Yeah, I'm up for that!!!"

Sun, 02/28/2010 - 17:51 | Link to Comment Bylinka (not verified)
Sun, 02/28/2010 - 19:39 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Seems someone bought a large amount of gold...in doelarrs, yen, or euros?  I believe the transaction was completed using currencie from one of these three currencies for two reasons; I am assuming that it would take one of these currencies to move the markets that significantly and that the quantity of purchase was large enough to move the currencie markets.  Considering that the euro rose, the yen rose, and the doelarr declined, i would say it had to be done in doelarrs.  On friday, someone holding doelars put their money where their mouth is.  Gold.....

Sun, 02/28/2010 - 19:59 | Link to Comment 35Pete
35Pete's picture

WTF is a doelerr?

Sun, 02/28/2010 - 20:52 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Long story, but in brief, the symbology of the world currencies shows many references to occultism (obviously), the SUN being one, also note snakes (as in crossing the currencie).  Obviously you know the terms doe (adult female) and lire (unit of wieght/lira sometimes in a double-crossed script form).  So note Columbia, and the double crossing of the "weight".  Also note the REAL.  The SUN (solar) illuminates the REAL by rey of light, the doelarr mimics this ilumination.  The power of the sun is the power over all things living.

From Websters:  solar 3 a : produced or operated by the action of the sun's light or heat <solar ENERGY> b : utilizing the sun's rays especially to produce heat or electricity <a solar HOUSE>; also : of or relating to such utilization <solar DESIGN>

(above capitalization for dramatic purposes)

Annuit Conceptus; Novus Ordo Seclorum.

Sun, 02/28/2010 - 21:41 | Link to Comment Hephasteus
Hephasteus's picture

Sun. I'm disappoint.

Mon, 03/01/2010 - 01:22 | Link to Comment 35Pete
35Pete's picture

Ahh. Gratzi. So, it's like Bohemian Grove shit, or something like that? In other words, some wicked symbology that these heathen babylonians shove right in our faces on a daily basis. 

Mon, 03/01/2010 - 07:37 | Link to Comment 35Pete
35Pete's picture

Good stuff Robo. As usual, a fine post. 

Sun, 02/28/2010 - 18:22 | Link to Comment Anonymous
Sun, 02/28/2010 - 22:11 | Link to Comment Hulk
Hulk's picture

Na, our problem is we have to see flames coming out of the building before applying
water,just seeing smoke doesn't get our attention......and it obviously should

Sun, 02/28/2010 - 19:00 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

It is hard to see the trees through the smoke.  Good cover for Morgan's Market Manipulators to do their thievery.

Sun, 02/28/2010 - 19:52 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

well they sure do not want to buy US treasuries. 

Sun, 02/28/2010 - 20:35 | Link to Comment Anonymous
Sun, 02/28/2010 - 22:40 | Link to Comment RobotTrader
RobotTrader's picture

This is a test....

http://www.finviz.com/futures.ashx

 

Mon, 03/01/2010 - 00:02 | Link to Comment Anonymous
Mon, 03/01/2010 - 07:44 | Link to Comment 35Pete
35Pete's picture

Very useful Robo. Thanks. Hmm.. Commodities up, currencies down. Check. Global recovery is cooking with gas this morning I see. 

Sun, 02/28/2010 - 22:49 | Link to Comment Anonymous
Mon, 03/01/2010 - 07:47 | Link to Comment 35Pete
35Pete's picture

*curtsey*

There are about a dozen or two posters here that have me in tears daily. Yeah the news suck, but these folks make it palatable. You have to be jocular about this stuff. The BS piles up so fast and so deep that a man would lose it if he couldn't spin some gallows humor into it. 

Learned that from my days in the 80's working in a trauma center. If you don't laugh, you snap. 

Sun, 02/28/2010 - 22:58 | Link to Comment Leo Kolivakis
Leo Kolivakis's picture

Alexandra sent me this interesting video:

http://www.newsy.com/videos/greek-debt-threatens-global-economy/

I thank her and wanted to share it here.

 

Sun, 02/28/2010 - 23:23 | Link to Comment Anonymous
Fri, 04/16/2010 - 10:38 | Link to Comment Tom123456
Tom123456's picture

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