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Uncle Pap Wants You! Greece Reaches Peak Desperation As It Tries To Sell "Diaspora Bonds" To Delay Bankruptcy
Just because Greece is now terminally locked out from regular capital markets, with its CDS trading points upfront, doesn't mean the country can't drink from the same Hopium trough as every other US investor. According to Reuters: "Greece has filed a shelf registration with securities regulators in the United States to be able to sell so-called diaspora bonds to retail investors, the head of the country's debt agency said on Wednesday." In other words, Uncle Pap wants YOU to bail out the country that even the ECB appears to have given up on. And if not for G-Pap, do it for Angela: because if the euro falls apart, the the DEM returns, how will Germany export its way in a non-eurozone environment, if the fair value of Germany's currency is realized and exports plunge? And to all US citizens who are jealous they are not the target source of funds for this last ditch attempt to stave off bankruptcy (again) fear not: pretty soon (if Uncle Bill is correct), Uncle TurboTax will give the very same opportunity to all 300+ million US hopium addicts.
More on this truly hilarious development in peak desperation:
Diaspora bonds, aimed at Greeks abroad, are part of plans by the debt-ridden country to raise funds before it attempts to return to international bond markets.
"We filed with the SEC (Securities and Exchange Commission) last night, the ceiling for the program is $3.0 billion (2.15 billion euros) and we are awaiting approval," Petros Christodoulou, head of the debt management agency (PDMA), told Reuters.
He said there are similar plans to tap Greeks in Australia but there has been no such filing yet.
Approval by the SEC means Greece will be in a position to market these bonds whenever authorities decide. A senior government official said the exact timing or the maturities of the bonds had not been decided.
The overborrowed euro zone member is keen to return to markets after its fiscal derailment in 2009 sparked a debt crisis that drove its borrowing costs to prohibitive levels and prompted a 110 billion euro ($140 billion) bailout from the International Monetary Fund (IMF) and its euro zone peers.
The government wants to return to markets sometime in 2011 but with yield spreads on Greek government paper back near levels reached at the peak of the crisis it looks unlikely.
On Wednesday the spread of 10-year Greek bonds over German bunds was at 972 basis points, hit by a slashing of its credit rating this week by Moody's which cited a growing risk of a debt default.
The plan to tap Greeks abroad was unveiled by Finance Minister George Papaconstantinou last year.
Athens has been funding itself over short durations with issues of six- and three-month T-bills. So far it has been raising money at rates below the 5.2 percent it pays on its bailout loans.
Watch for that Greek CDS to make some step wise jumps wider as this latest attempt to delay the inevitable, fails. This will be especially true if the rumor that Greece will conduct a "controll bankruptcy" on March 25, as mentioned by Aleka Papariga, head of the Greek communist party...
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diaspora bonds
love that name
implies get out while you still can
lol
Buy German cars and real-estate while you can. If the DEM comes back, German stuff will be very, very expensive.
Great idea. I can make you an offer.
LMAO! Diaspora is so deliciously close to desperate! I love how the Weber says today that everything is great in the EU when ONLY GERMANY IS DOING GOOD!
Greece is 5 minutes away from bankruptcy and Spain is in pain. I just read something like 7 million Greeks live OUTSIDE GREECE! LMAO!
http://fiatsfire.blogspot.com/2011/03/greece-cant-seem-to-catch-break-on...
Yeah, Greece is the first house o cards to fall just as I predicted. in 3.... 2.... 1..
These Diaspora bonds are the proverbial Hail mary for Greece. When a country does something like this they are about to default. Investors should ask themselves if Greece is doing something like this and still need money, how in gods name a nation of 11 million people are going to pay back 150 billion dollars or euros in loans. They can't but they do have something that could act as collateral and/or get the debt wiped off the ledger, and that is the 1400 islands that it owns (minus 227 that is inhabited). They could sell or lease or whatever a bunch of their territory (in a prime location also) to reduce the bill. I think when Greece defaults and have to go to the IMF for money and such, they will be under extreme pressure to sell or lease that land for collateral.
Put Leo K down for a dozen.
haha, he said Greek bonds were a buy at 7%
Leo should buy the whole issue for his pension funds at these prices.
Nothing would surprise me less. OMG, I'm glad there's no "professional fund manager" taking care of my retirement fund.
This is a great idea. Greeks must show patriotism and bailout their country of origin.
Likewise, I think the duty of every Patriotic American is to sell gold and silver, and buy stocks and US government bonds.
Yes, sell me your Silver. I pay cash.
I hope our Beloved President Dr. Barack H. Obama will soon ban gold and silver ownership on the American soil.
Those who try to "protect" their personal assets and refuse socialism instead of financing the economic recovery and the socialisation of America are nothing less than unpatriotic, nerdy lunatics.
Obvious troll
Obvious tongue-in-cheek sarcasm..
I did my part hamy, bought some olive oil today, extra extra virgin, hard to find in Greece if you know what I mean..
We need a sarcasm detection testing regimen around here..
I was looking for some extra virgins....
Hip hip, HOORAY!
Hamy's made my day!
(where are you hiding Harry, BYW?)
Under your plan, Greek-Americans are absolutely screwed!
Screwed???
No, because even if they lose money, they would have made the most noble sacrifices to save their country, and dedicate their life to the progression of socialism in the civilized world.
http://www.youtube.com/watch?v=07REkvATHb8
This video is just for you Hamyboy!
Looks like Chief NeoCon himself, Cheney.
When people start whistling this tune, THEN I'll get worried:
http://www.youtube.com/watch?v=GvXBNnpHFDI&feature=fvst
Until then, it's all BOOYAAHH!!!!!!!!!!!!!!!!!!!
Someone got it right. Learn something Hamy.
You are scary good Hamy!
Troll Hamy, it is really in Greece's best interest to allow their gov't bankruptcy. Patriotic to save their country from what, wealthy banksters? GPap?
hamy, don't forget mbs. also, what about true patriots stepping up and buying the bad bank assets of bac? isn't it time for all true american patriots to bail out the bankers who happen to be doing God's work?
Controlled Bankruptcy? That's a new one on me. I find it amusing that that little tidbit was stated by the Communist party of Greece. Not that I'm against them running their country how they wish, but you'd think after the collapse of the USSR people would learn better.
Is that like being a "little" pregnant?
It worked at one point for Israel.
Apples to apples?...probably not.
I would think that any feelings of ethnic/national piety would be better satisfied by direct remittance payments to friends/family back home.
What do you think Leo - will this pig fly?
And retail will be stupid enough to buy them.... sad days.
diaspora bonds would work if they nationalized all shipping owned by greeks carrying Liberian and St Kitts and Cayman Island flags. Tax the plutocrats. 70% of greek upper class revenues are never taxed.
I see - so then the problem is the other 30% that do pay taxes. Maybe we can get them to stop!
Dude; that's it ! Your political platform; stop paying taxes, you can get elected in Greece !
Very simple video explaining the problems with the Euro below .....
They are all under one exchange rate, some countries need to tighten, some do not ..... Germany • The Pig's need two different rates at this point but because of the way the Euro was constructed they are all under one rate, a monkeyhammer.
• Video •
European Debt CrisisVery good boy,
video should convince you to burn all your economics books and go back to basics. First thing would be to buy Quicken and enter all your holdings. Second start trading your holdings with yourself with gains at each transaction. Next, look how good financially you look, I'll be proud of you!
Going forward, when you finally decide to use your wealth in real world sell your holdings and report the results! Ok?
He look, my own personal troll with nothing to add or facts to back up said mouth .... good boy.
The eurozone is a total mess. With China. Thats why I looooooove the dollar and her safety. Thats why all the nations keep gold holdings in the USA and why all the foreigners try moving to the states. The land of the free ...
How's that healthcare in Canada and the housing bubble ....
I got enough of your facts boy, In Canada is exactly the same shit like in US. The only difference is (?) better propaganda, but the end is the same my sweet Economics PhD.
You're just jealous.
Have experienced both health care systems and much prefer the Canadian model.
Signed - happy Canadian
duh!
Greece is a little runaway
http://www.youtube.com/watch?v=8cAjU9RUpoQ
Great article over on notayesmaneconomicsblog about the upcoming stress tests, v2.0; ties in beautifully with this current story;
http://notayesmanseconomics.wordpress.com/2011/03/09/uk-shop-inflation-r...
G-Pap is total failure educated in US. He had and still has opportunity to be one of the first and default. First out = first in - that's his chance and all the losers around the world, there are no winners.
Time for QG1 - quantitative Greecing
Looks like equity investors are celebrating the Greek problems again by buying more blue chip stocks like IBM, now printing, fresh, new, world record highs.
Why is that?
It is because all the various and assorted geopolitical problems, convulsions, financial blowups, etc. occurring around the world virtually guarantees unlimited QE"X", and free money to all equity speculators.
Sound like Bill Gross begs to differ though... http://www.zerohedge.com/article/exclusive-bill-gross-dumps-all-treasuries-brings-total-government-related-holdings-zero-flee
Which is odd since its hard to believe that the Fed/Obama has or even thinks they have a viable plan B.
Outright destruction across the board
RobotTrader - Mon, Mar 7, 2011 - 12:02 PM
Virtually everything is getting liquidated.
Except the dollar and bonds.
itg, you're the man, hombre! nothing like a little clarity to show the catfish mouth robo uber bull bear wannbe for the fraud she is.
This lovely girl is not Greek. What idiot would buy the bonds of a country that is going to default eh? OPA!
No, it's not "free money"; it's numbers which will lose to real inflation.
Some might call this a pap test but I kid the anonymous Grecian official with the big brains.
Don't make me say it...
Love this:
Diaspora bonds, aimed at Greeks abroad, are part of plans by the debt-ridden country to raise funds before it attempts to return to international bond markets.
Another case of borrowing more to solve debt problems...
Hey maybe get that Jim Chronos to start selling their bonds, afterall in Jim's world I bet greece is better than china.
Can I use the foodstamps to pay for the bonds?
/sarc
Ah, but of course you can, at some discount to shopping value of the EBT card. - Ned
LOL! cracking me up. Sure; why not ?
How long can the Euro last?
This is ridiculous. First the Euro looks like it's going to crush the USD, then the Eurozone PIIGs are crashing and falling apart. They can do this all day long to keep the Euro vs USD range bound. Nice game.
Fed may stop QE but it does not stop them from taking equity positions. This may end up being the only way forward.
Cut Greece loose, and Spain. Let them revert to their own currency again and devalue 50% to straighten things out and begoin all over.
I read even Argentina may default...again.
The squid can sell them to the norway teachers with a cherry aaa rating on top!
bonus time bitchez!
If people want to spend their money this way, why not?
After all IS "their" money, Michael Moore not withstanding.
ROFL I never knew a nuclear bomb was controllable. Apparently G-Pap thinks he can with the banks. (and the world's banks)
Let them fail, ofc, but G-Pap is dellusional about being able to stay relatively status quo. All countries without a printer are screwed versus those that do. (of course this is a crappy and ulitmately hyperinflationary collpase path, but those without printers, just get the collapse...and earlier)
Glass-Steagall
If the rates are good like say 15%, I will buy even tho I am not a Greek and gets marketed here in USA. Euro's are atleast practising austerity and "if" freegold hits, Euro will be better off. The Elites will save any default of a Euro country - I think. I could use those Euro's for a European vacation sometime in the future
why don't they just open up a few hundred accounts, drop a few billion euro in each one and go on about their business, like the irish.
some folks just don't get "it"
I would buy a position in those bonds if Greece would return to her roots and begin again to export this quality of product:
http://www.youtube.com/watch?v=ukyhxNJyYds&feature=related
I think we need Leo K's "independent rating" before investing ;-)
- Ned
Uncle Pap Caption:
This finger is used to press 1 for english.
That PS job leaves something to be desired ;-)
Euwww.
He wants to eat the money of Greek diaspora.
Papandreou is facing jail because he lied to Greeks and manipulated bankruptcy
I suspect this is the more appropriate photo: http://3.bp.blogspot.com/_gMXRWujGTwM/TM4F8OVMlAI/AAAAAAAAAIE/Fcj60fZj5P...
All I know, after extensive cultural immersion, is that all ruling parties used the government to create drone-like, low-paying government jobs. While everyone aspired to get that 7-800 euro gov't job, education, family, religion (not arguing for or against religion)and other pillars of society were broken down. Add the oodles of immigrants and the system has become entirely ineffective, SEVERELY bloated and is going down in flames. This was the only possible outcome for such a small, inefficient country that produces little else other than olive oil/feta and has such huge overhead.
If you read up on G-Pap's family history you will see some weird inconsistencies though. For example, his father was highly critical of America, Nato and Europe. Odd, seeing how entrenched they have become.