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Ze Germans: "Only The IMF Can Help Greece"

Tyler Durden's picture





 

Those banana-hugging Germans strike back, and by doing so, throw the rotten apple of the imminent Greek collapse straight into America's back yard: in today's edition of Handelsblatt, German politicians have said that only the International Monetary Fund is the right institution to save Greece from going bankrupt. While the increasingly irrelevant Greek rumor-spreader has been very busy over the past few days, getting Greek newspaper Ta Nea to announce that now Caisse des Depots has entered the KfW bailout syndicate, in an interview with German TV station ARD, Merkel said that not only is this yet more gibberish but that there is no legal basis for any of the rumored actions. So what will happen to Greece? Well, if former ECB Chief economist Otmar Issing has his way, Greece's dirty laundry will end up being washed by American taxpayers, because you see Greece is just as much a member of the IMF as it is of the EU, or so the Germans claim.

Rough google translation from Handelsblatt:

Former ECB
chief economist Otmar Issing provides a similar view: "My preference is
that you turn on the IMF, since Greece is a member of the IMF, not the
European Union
", said the current chairman of the Intergovernmental
Commission for the financial architecture for information in this
newspaper recently the Europe Committee of the Bundestag. The monetary
union was not a state, Issing argued, but a community of sovereign
states. If you could help Greece, other countries refuse to help
little, "he said.

Not all that shocking, a Greek default (but, but, it is only 0.00001% of world GDP or whatever), it is now confirmed, would be the next Lehman:

A bankrupt government would meet not only the euro zone, but shaking the entire global financial system. After
the video of Obama, Merkel and Brown said the spokesman for the U.S.
president, Robert Gibbs, Obama was convinced that the EU would respond
"appropriately and effectively" to the crisis.
On the foreign exchange markets, the continuing uncertainty sparked a new wave of speculation against the euro. According to the U.S. inspection CFTC, the number reached bets on a falling euro share price, a new record. This year, the euro against the dollar has lost about ten percent of its value.

The biggest hindrance to a Greek bailout: Germany itself, whose political parties realize they are getting closer to comparable riots as those recently seen in Greece should they proceed with what the Greek rumormonger has been dreaming of:

The head of
the CSU in the European Parliament Markus Ferber, however, rejects aid
from the EU and its Member States for Greece and categorically to
commercial banks that take part in consequence of the crisis on
speculation against the euro, to impose stricter rules.
"Greece is a bottomless pit. Giving now that money would be a big mistake," said Ferber to Handelsblatt Online. Ferber expressed her concern, given the ongoing crisis triggered by speculation against the euro, Greece. The CSU European politicians called for strict rules to prevent such speculation. "Emergency escape must be participating banks under the license," said Ferber. About an initiative he would soon talk with EU internal market and services commissioner, Michel Barnier.

Ferber said that a German participation in an aid package for Greece was prevented by legal reasons. "The Constitutional Court has ruled in its Maastricht ruling that
German participation in a bailout of another country from the German
ratification law would no longer be covered
," said Ferber.

Rather than rely on aid from the EU, Greece could try on new bonds to raise money, so Ferber. "If it is more
expensive in Greece than in Germany, incur debts, then this corresponds
to market rules. The U.S. is no different if, for example, California
pays a higher risk premium than Nevada,
" said CSU European politicians.

Sure enough, recent PR (or lack thereof) escalations by Greece, which has so far not gotten its way, apparently have not led to any material deterioration in German opinion toward the defacto insolvent PIIG (or at least so the far more diplomatic Germans claim).

Greece's government is trying, however, in dispute with Germany not pour oil into fire. The
question of German reparations for the occupation in the Second World
War would not now put on the agenda, said Vice Foreign Minister
Dimitris Droutsas the Handelsblatt.
Ahead of the visit to Germany by Prime Minister Giorgos
Papandreou Droutsas stressed the "very close and cordial relations"
between the two countries.
While Athens would overcome the acute financial crisis on their own. To do this, but need the political solidarity of the EU partners - and especially the support of Germany.

The question of German reparations was open, in fact, said Droutsas. "But we want that now do not make the
topic completely and mix with the current financial difficulties of
Greece." In view of the "special sympathy felt by many German for
Greece," one should not focus on the misunderstandings and mistakes of
the past but the present and see tomorrow, "said the politician:" I am
optimistic that together we can achieve much. "Regarding the meeting
with Chancellor Merkel, to Papandreou and Droutsas come together in
Berlin on Friday, the minister said that Athens was now waiting for
Government a "really strong political support."

We eagerly await to see what Greece's increasingly marginalized rumor spreader's next steps will be.

 


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Sun, 02/28/2010 - 12:47 | Link to Comment Stuart
Stuart's picture

Like H1N1, it's just a matter of time before that shit spreads to the states (US).  

Sun, 02/28/2010 - 15:54 | Link to Comment CombustibleAssets
CombustibleAssets's picture

Somebody else referred to the Greek problem as a virus. It certainly seems to be contagious.

Sun, 02/28/2010 - 23:15 | Link to Comment Pamela Anderson
Pamela Anderson's picture

Obama should force Goldman Sachs to bailout Greece.

Sun, 02/28/2010 - 13:03 | Link to Comment pros
pros's picture

Issing works for Goldman

 

Now you know where the Grosse Scheisse has placed its bets...

making it too easy.

Sun, 02/28/2010 - 14:40 | Link to Comment Anonymous
Sun, 02/28/2010 - 13:04 | Link to Comment 10044
10044's picture

German citizens are angry over greece' bailout by germany. American citizens think greece is a movie with Travolta and think the IMF is an anti-depressant.
Fcking pathetic, viva American idol

Sun, 02/28/2010 - 14:25 | Link to Comment perchprism
perchprism's picture

 

I like Crystal Bowersox to win American Idol this year.  Her teeth are rotten, but they're already working on that problem.  Sing it, baby!!  Grease is the word!

Sun, 02/28/2010 - 15:01 | Link to Comment perchprism
perchprism's picture

 

Akshully, I spent all morning tilling my garden here in NC.  I set out 16 brocolli plants, 120 red and yellow onions, and 4 rows of spinach!  Pontiac red potatoes and carrots next week.  I should get over 1,000 lbs of potatoes this year, all out of my little garden. 

I don't give a good god damn about Greece. I'm just about ready for anything that might come my way.  Almost, but not quite.  Need to get a few hundred more canning jars and a few thousand lids.  Lids can't be reused, and they're damned expensive, too. 

Got a load of heirloom seeds.  Black beans, corn, and tomatoes.  Gonna plant yellow bell peppers, straight neck squash, and Parks Whopper (hybrid variety) tomatoes this year.  Did you know dried beans will keep 30 years if stored properly? 

Got an AR-15 Friday.  Bought it for myself for my birthday (turned 50 on Valentine's Day).  Handmade in Elizabethton, NC.  Nice weapon.

Got the makings of a manual handpump for my well.  I'll install it if it looks like the shit's gonna hit the fan.  My only regret is I'm not off-grid.  If I had the money, I'd set up solar panels for 3,000 watts on a 24-V battery bank.  Looking at $20K at least to do it right, getting the panels off of Ebay.  The panels are about $800 each for 200 watts.  I can dream, can't I?

I was in the Air Force during the Carter Administration.  Shit was looking real bad then.  It's starting to look worse, now.  If gas shoots up to $4/gallon + anytime soon, look for things to get crappy in a hurry.  We keep our three vehicles topped off, and have 30 gallons in the barn, in 5-gallon cans.  93 octane.  I figure if Israel attacks Iran, I can go out and buy some more in a hurry.  Here's a link to 100 items you need when the SHTF:

http://www.thepowerhour.com/news/items_disappearfirst.htm

 

Don't forget the silver and gold, bitches!!

 

 

 

 

Sun, 02/28/2010 - 15:33 | Link to Comment Anonymous
Sun, 02/28/2010 - 15:42 | Link to Comment defender
defender's picture

check out this site: http://sunelec.com/

might make that solar setup a little more affordable.  In fact they have entire grid tie systems for lower cost per watt than the amount that you gave for the solar panels.  Good luck with your gardening, sounds like you have your work cut out for you.

Sun, 02/28/2010 - 19:12 | Link to Comment Hephasteus
Hephasteus's picture

Everybody makes the solar mistake. Some power is better than no power. Set up a 600 to 800 watt solar system. Use it to reduce electricity bills now use it to live off of later.

Sun, 02/28/2010 - 20:41 | Link to Comment Anonymous
Sun, 02/28/2010 - 21:13 | Link to Comment Anonymous
Sun, 02/28/2010 - 21:19 | Link to Comment Hulk
Hulk's picture

Congrats on the garden.You will have to
try a few hens. The eggs are great and the entertainment value is priceless.
We installed one of the Lehman hand pumps and
are happy.
Check out First Solar. They are down to
2 bucks per watt
For Batteries look at edison cells
Edison cells have nickel and iron plates with
a sodium hydroxide electrolyte and last 80 to
100 years. Triple the price of lead acid though
http://en.wikipedia.org/wiki/Nickel-iron_battery.
We standardized on AR 10's. Springfield M1A's and Rock River Arms LAR8 A4's with holosites
Sorry you had to serve under Carter!
Gold Bitches! Not sure I quite understand that
term, perhaps someone can explain it to me!
(but I get the general thrust of the term)

Sun, 02/28/2010 - 21:34 | Link to Comment Anonymous
Mon, 03/01/2010 - 10:14 | Link to Comment mouser98
mouser98's picture

 

We planted our potatoes last weekend.  Just finished getting the chicken coop ready for the biddies.  Buying a shipping container for bulk storage.  Selling the house and buying a used mobile home to put on family land (where the potatoes and chickens are).  Circle the wagons.

I think just the fact that we are talking about survival preparedness on a financial blog says a lot.

 

Sun, 02/28/2010 - 13:04 | Link to Comment buzzsaw99
buzzsaw99's picture

So you want that we should spank your unruly child for you?

Sun, 02/28/2010 - 13:05 | Link to Comment bugs_
bugs_'s picture

Hopefully the IMF will suggest its an ECB problem, but seriously did

anyone expect the EU to actually deal with an actual problem in

their back yard?

Sun, 02/28/2010 - 13:08 | Link to Comment Going Down
Going Down's picture

 

Yeah...right.

 

"only the International Monetary Fund is the right institution to save Greece [and Portugal, Ireland, Spain....] from going bankrupt."

 

The IMF has tripled its lending capacity over the past year, to 850 billion dollars, thanks to loans from member countries. The expanded financial resources "should be sufficient to meet demand in the coming period," he said.

 

http://rawstory.com/2010/02/imf-chief-pushes-power-worlds-stage/

 

Sun, 02/28/2010 - 13:23 | Link to Comment tenaciousj
tenaciousj's picture

If the EU isn't responsible for the EU, then what is the purpose of the EU and/or the Euro?

Sun, 02/28/2010 - 20:26 | Link to Comment Anonymous
Sun, 02/28/2010 - 13:29 | Link to Comment Prof Gulliver
Prof Gulliver's picture

The situation will be solved this week using the J. Wellington Wimpy solution. The Germans will bail out Greece, and all the Greeks had to say is, "I would gladly cut our deficit Tuesday for 25 billion euros today." Dow 12,000! S&P 1,300! Who cares what happens one year from now? Or even one month from now?

Sun, 02/28/2010 - 22:47 | Link to Comment Anonymous
Sun, 02/28/2010 - 13:32 | Link to Comment Segestan
Segestan's picture

OT-- There was a Pirate captian , who was sighted by a Royal vessal , who preceeded to attack the pirate vessal, the pirate captain turned to his servant and told him to go quickly and bring him his Red shirt, after the battle the servant asked the captain why he wanted a red shirt; so that the crew wouldn't see me bleed. After awhile a fleet of Royal vessal were sighted , the captian told his servant to bring me my brown pants.

Sun, 02/28/2010 - 13:41 | Link to Comment Anonymous
Sun, 02/28/2010 - 16:13 | Link to Comment Anonymous
Mon, 03/01/2010 - 06:53 | Link to Comment Mr Shush
Mr Shush's picture

The Greek government can say "how high" all it wants; I'm far from convinced the Greek populace (and the public sector unions in particular) will allow it to actually do anything of the sort.

Sun, 02/28/2010 - 16:35 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

If it is the IMF who bails Greece out, the Fund BETTER be as tough on Greece as they usually are on everyone else they bail out.  Because that is mostly USA money on the line.

The Greek riots will be fun to watch if that happens.

My thinking, however, is that Europe (Germany) will wind up having to bail out Greece.

Sun, 02/28/2010 - 20:32 | Link to Comment DosZap
DosZap's picture

"Because that is mostly USA money on the line."

That is hilarious, USA money?............shiuut, we haven't had any REAL reserves or REAL money for 35 years.

The whole SOB, is a PONZI SCHEME.

No one has any REAL money, except the PM LORDS.

The rest is CON GAME bucks.

Sun, 02/28/2010 - 13:47 | Link to Comment A Man without Q...
A Man without Qualities's picture

I think the other member nations are playing this quite well.  The Greeks need to get it into their fat heads what IMF "help" actually looks like and realize they will be much better off trying to work within the EU.  However, they need to get the situation (i.e. the budgets, workers and unions) under control and then the other European nations can make the argument that they are providing credit on a commercial basis, i.e. not really a bailout.

Germany is not about to riot about anything nor is it the greatest obstacle to a "bailout", but rather it is as always the Greek kleptocracy; union leaders, politicians, central bankers and civil servants, who have the most to lose. The main concern for Germany is that any too lenient "bailout" leads to rising Bund yields and rising Euro, which is the worst possible outcome.

I have said it before, but I believe there are parties in Greece who see opportunity to gain from a default, especially the unions, who don't want their members to know they have been stealing from them for years, and opposition politicians.  The are desperate to find external parties to blame, such as the Nazis and the Persians, rather than admit the truth about the ransacked economy.  While they are at it, they should demand reparation from the Turks for blowing up the Parthenon.

 

 

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

demand reparation from the Turks for blowing up the Parthenon

It was the Ventians that actually fired the shell that set off the gunpowder stored by the Ottomans, who, despite turning the Parthenon into a mosque had looked after it (well the structure if not the statues). Ironically the Parthenon was paid for with and used to store taxes that Athens had collected, if only they could repeat that tax collection now.

Sun, 02/28/2010 - 14:08 | Link to Comment Anonymous
Mon, 03/01/2010 - 06:58 | Link to Comment Mr Shush
Mr Shush's picture

It's foolish to think the UK's likely to default in a technical sense when it issues debt in its own currency. By all means get short Sterling prior to a further epic bout of debt monetisation, but I can't see any value in UK CDS.

Sun, 02/28/2010 - 14:23 | Link to Comment Anonymous
Sun, 02/28/2010 - 14:45 | Link to Comment CEOoftheSOFA
CEOoftheSOFA's picture

I think it's the fault of the Christians who knocked all the arms off the statues, thereby reducing the market value.

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

Maybe we can suggest to the EU that they are responsible for bailing out California and the many other states in deep shit. It makes as much sense as the US bailing out Greece. 

I don't blame the germans for getting pissed. The Greeks have to find a way out of the mess they created on their own. Socialism is wonderful until someone has to pay the bills that are due.

Sun, 02/28/2010 - 15:16 | Link to Comment perchprism
perchprism's picture

 

It is surreal that they are dredging up WWII Nazi occupation that ended 65 years ago.  Look what Germany itself has achieved after its utter destruction.  This refusal to accept responsibility for their own plight is truly juvenile.   It is a hallmark of progressivism.  The Havenots don't have because the Have's stole it all away.  The Man keeps them down.  Hmmm.  I guess the game is that, at the very least, the Germans "owe" it to the Greeks to bail them out.  Very eerie.

Sun, 02/28/2010 - 20:37 | Link to Comment Anonymous
Sun, 02/28/2010 - 20:34 | Link to Comment 35Pete
35Pete's picture

I think it would be HILARIOUS if Kalifornika had to accept IMF terms. 

First, the statists would get a real taste of world government. Second, they'd freak over the conditions. 

Privatize the redwood forrests for purchase by Korean interests. 

Sell the Sierra Madres to Saudi Arabia. The Saudis would then ship them over to their desert to gentrify it. 

China buys San Francisco and turns it into one great big goddamn textile mill. 

India buys Hollywood and carts it off to merge with Bollywood. 

Wow, that'd be a hoot!!

Mon, 03/01/2010 - 10:50 | Link to Comment Anonymous
Sun, 02/28/2010 - 15:13 | Link to Comment Anonymous
Sun, 02/28/2010 - 15:58 | Link to Comment CombustibleAssets
CombustibleAssets's picture

There is no way we can look good by helping the Greeks. The Germans are just trying to shift the blame.

The austerity measures that will need to be forced on to the Greek population will have them blaming us for taking food out of the mouths of babies.

Sun, 02/28/2010 - 16:11 | Link to Comment Anonymous
Sun, 02/28/2010 - 17:16 | Link to Comment Comrade de Chaos
Comrade de Chaos's picture

I knew it. !!!

By the way,  IMF is run by .. Europe. (world bank by us) However since it takes 'em some time and confusion surrounding the issue is not helpful, Greece will probably be bailed out only after missed interest payments and acceptance of the IMF conditions.

Good f luck bondholders, cause any well developed country does feel a huge degree of entitlement when it comes to raising money. And such an entitlement will make any debt  restructure compromise meaningless. Which brings us to the next question, which of the Austrian and Swiss banks are praying daily for the world financial community not to discover their full exposure. 

Sun, 02/28/2010 - 18:17 | Link to Comment godfader
godfader's picture

Just wait until Axel "The Axe" Weber takes over the ECB. It will feel like a military coup. The day he takes office he'll hike rates to 2%. Then another 0.5% every month until Southern Europe is defaulting on their excessive debt at 10% annualized. The Nazis love sadism.

Sun, 02/28/2010 - 18:19 | Link to Comment JimboJammer
JimboJammer's picture

Hello  Perchprism  ... !   a  NC  guy  cool..  I  am  NC  too..

Oh- Bomber  will  bail  out  greece..  it  is  so  much   inter-twined

to  USA  Banks ...  the  fed  might  be  buying  Greek  Bonds  right  now..

Sun, 02/28/2010 - 19:47 | Link to Comment williambanzai7
williambanzai7's picture
INGLORIOUS BANKSTERS "You probably heard we in the investment bankin' business; we in the Euro shortin' business. And cousin, Business is a-boomin'. "

http://1.bp.blogspot.com/_wkgIzuqJM0w/S4qNj83BIuI/AAAAAAAACtA/4AAArpqSAj...

Sun, 02/28/2010 - 20:10 | Link to Comment crzyhun
crzyhun's picture

Those Deutchers are soooo clever. Everyone else good luck.

But seriously, if 1/2 true major fubar. This has to stop.

Sun, 02/28/2010 - 22:26 | Link to Comment Jim in MN
Jim in MN's picture

 

Punt to IMF.  IMF wimps out on 'draconian' conditions.  Crisis....postponed.

The scary thing is how long, chaotic and incompetent this all is.  Put a bigger sovereign default in the chute and SPLAT!

Only a matter of time.

 

Sun, 02/28/2010 - 23:25 | Link to Comment Anonymous
Sun, 02/28/2010 - 23:35 | Link to Comment plocequ1
plocequ1's picture

Who gives a fuck anymore? Lets bail out all the troubled nations. Bernankes da man. I dont mind. Just dont fuck with my 52" Samsung, My nude photos of Ernest borgnine, My Seymore Butts video collection and my fucking Rice Pudding. I love the smell of a bailout in the morning. Smells like....... Victory.

Mon, 03/01/2010 - 07:01 | Link to Comment Anonymous
Sun, 02/28/2010 - 23:41 | Link to Comment Double down
Double down's picture

That Greek gold the Germans stole, was it not taken from Troy in the first place?  Do the Greeks owe the Turks?

Mon, 03/01/2010 - 06:00 | Link to Comment godfader
godfader's picture

The Nazis stole it from Greece, then bunkered it in Switzerland -- alongside with what they got in Auschwitz. Short EUR, Long CHF.

Mon, 03/01/2010 - 06:38 | Link to Comment Anonymous
Mon, 03/01/2010 - 07:19 | Link to Comment hound dog vigilante
hound dog vigilante's picture

Greece debt dumped onto US by IMF proxy.

And it only took two weeks.

Is it pitchfork time yet?

Mon, 03/01/2010 - 10:33 | Link to Comment mouser98
mouser98's picture

don't know if you all have already seen this:

A secretive group of Wall Street hedge fund bosses are said to be behind a plot to cash in on the decline of the euro.

http://www.dailymail.co.uk/news/worldnews/article-1253791/Is-man-broke-Bank-England-George-Soros-centre-hedge-funds-betting-crisis-hit-euro.html

Mon, 03/01/2010 - 12:43 | Link to Comment Anonymous
Thu, 03/04/2010 - 14:26 | Link to Comment Anonymous
Fri, 04/16/2010 - 10:39 | Link to Comment Tom123456
Tom123456's picture

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