While no one will be entirely surprised in today's consequence-less world, the "bombshell" news that Greek Independent MP Pavlos Haikalis claims he was offered EUR 2-3 million in order to vote for Greece's next President is no less shocking in its exposure. As AP reports, it is the second such claim from the Independent Greeks. Another of the party's lawmakers claimed last month that someone had approached her with the intention of bribing her. The government immediately jumped into defense mode and dismissed the claims as "badly acted theater" and called for any evidence to be made public. However, as KeepTalkingGreece reports, "sources" from the prosecutor’s office told media that Haikalis did indeed submitfootage, and according to latest information, told the briber’s name to the Greek Police. This can only bring Goldman's worst-case scenario - a Cyprus-style collapse - even closer for Greece.
While the headlines are being made by David Tepper's "markets are dangerous" comments, there was plenty more bearish, bullish, and everything in between as the Skybridge Alternatives (SALT) Conference on day 1.
Four years and three prime ministers after Greece’s then premier, George Papandreou, requested an international bailout that slammed his nation with painful austerity (but saved the EU banks), Bloomberg notes that political instability still haunts Greece. Despite issuing bonds and GDP coming in slightly better than expected (still in recession/depression), former Prime Minister Costas Simitis of Pasok admits "The euro crisis seems to be over but its causes have not withered away," and if election polls are anything to go by, the fragile fraud that is a Greek recovery is set for problems Samaras' governing coalition as Syriza (the opposition that rejected the bailout terms) support soars and Pasok plunged to sixth place with just 5.5% support. In addition, retroactive taxes on gains are weighing on European bond markets (and Greek stocks).
The periodic Munk debate spectacle out of Canada is memorable for bringing together very flamboyant personalities, discussing very germane topics. The one that has just started has a topic of whether the rich should be taxed. More. Surely an issue that has seen its share of discussion in the US in the past year, so we hardly expect to learn anything new. What is most amusing, however, is that the debate tonight pits none other than Paul Krugman (and former Greek socialist leader and economic destructor extraordinaire George Papandreou, whose family incidentally was found with tax-evading Swiss accounts so brownie points for extra hypocricy) defending more tax hikes, and pitting Newt Gingrich and Arthur Laffer on the "don't tax me bro" side. The result should be quite a memorable catfight.
Popularity is something that can be determined by two things. Firstly, it doesn’t last! When too many people start liking you anyway, there is always someone that is there ready to knife you in the back. ‘Heil Caesar!’ soon turns into ‘Et tu, Brute’!
Press conference from hell, slugfest about corruption, even in Germany
Is Britain “drifting toward the exit”?
There was a time when Swiss bank secrecy was the passion of every tax-challenged oligarch in the world. Then things changed, Obama made it s badge of honor to rat out anyone you know who has a bank account in Zurich or Geneva, lists of previously ultra-secret account holders started "leaking" and from an asset, Swiss bank accounts promptly became a liability to everyone involved. Such as the matriarch of the legendary Papandreou family, former Pasok Greek PM G-Pap's mother, Margaret, also wife of former PM Andreas, who according to The Telegraph has been revealed as having a €550 million ($700 million) Swiss bank account (she will hardly be happy to learn that Credit Suisse just instituted a negative interest on CHF deposits) in the Geneva branch of HSBC. Obviously lots of hard work by M-Pap went into building up that particular nest egg.
- Union solidarity rubs up against slow economy in LA port strike (Reuters)
- Geithner predicts Republicans will allow higher tax rates (Reuters). And "no risk" of a US downgrade, "no risk"
- Geithner takes hard line on fiscal cliff (FT)
- Narrowing LDP lead points to Japan post-election confusion (Reuters) - not to mention, USDJPY plunges if LDP loses
- Vietnam Says China Must Avoid Trade Weapon in Maritime Spat (Bloomberg)... and real one, one hopes
- Greece unveils bond buyback plan (FT)
- ECB Can’t Deliver Spain Spread Rajoy Wants, Wellink Says (Bloomberg)
- UK’s euro trade supremacy under attack (FT)
- Merkel Signals Debt Write-Off Possible as Buyback Begins (Bloomberg)
- ECB's Noyer Says Bond-Buying Plan 'Is Bearing Fruit' (WSJ) - as long as just plan, and not execution.
Certainly, don’t let the riffraff decide.
Angela Merkel is finally coming to the one country where the local media will not tire of photoshopping her in various Nazi outfits. The result: at least 6,000 policemen (and more like 7,000 according to Spiegel) will be deployed to protect her on her 6 hour visit to Greece on Tuesday, the first since the crisis erupted in 2009, and which has seen Greek unemployment explode from manageable to 25% at last check. Another result: parties from across the spectrum have said they will protest her visit, and strikes will further shut down what is already a completely shuttered economy. "She does not come to support Greece, which her policies have brought to the brink. She comes to save the corrupt, disgraced and servile political system," said Alexis Tsipras, who leads the opposition Syriza alliance. "We will give her the welcome she deserves."..."We don't want her here," said Yannis Georgiou, 72, who has seen his pension cut by one third. "We will take to the streets against austerity and against the government. Maybe Merkel will hear something and see what we're going through." Finally, with virtually the entire police force tasked with defending Merkel from the residents of her Southeastern European colony, it means that virtually every other place of interest will be left unguarded. Hopefully, nobody in Greece has seen Die Hard with a Vengeance and has access to dump trucks. The one thing Greece has going for it: there is virtually no official gold left anywhere that can be stolen (most of it already has been transferred elsewhere), or otherwise any tourist armed with a camera and located in the vicinity of the National Bank of Greece could film a sequel to what many consider the best Die Hard of all.
Fresh out of the flashing red headline-a-tron:
- IMF OFFICIALS SAY GREECE WILL NEED A THIRD BAILOUT
- IMF SAYS GREECE CAN'T FILL FUNDING GAP ON ITS OWN, UP TO EUROZONE AND ECB TO FIND MONEY FOR GREECE
- GREECE MET ONLY 22% OF PROGRAM TARGETS FOR 2011
- EURO EXIT WOULD SET GREECE BACK BY MANY DECADES
Nobody, NOBODY, could have anticipated that fighting record debt with recorder debt, could possibly fail. And cue Germany telling Greece the party is now over, which, is what (a sliding EURUSD for those confused) it has wanted all along.
To understand modern Greece one must understand it’s ancient history and it’s Geography. The Golden era of ancient Greece was rarely Pan Hellenic, with the legendary exception of King Menelaus’ expedition and siege of Troy, the brief cooperation during the war against King Xerxes of Persia, and perhaps Alexander the Great’s domination of what is now Greece, it has predominantly been the glorious histories of city states. And it’s geography is crucial, it has always been thought to stand as the boundary between East and West, whether you consider the ‘East’ to be Persia, the Ottoman Empire, or Communist eastern Europe it is best to understand that Greece’s eastern frontiers have never been an impassable barrier, infact Greece’s porous frontiers have ebbed and flowed with fickle fate and capricious fortune. As a consequence Greece is one of the most polarised nations on the planet.
It is truly difficult to believe that social tensions may be contained indefinitely under a deteriorating economic scenario – although there is the 'frog in the pot analogy' again. There are also escape valves which surely help keep social tension from mounting such as the ongoing criminal investigation in which former Bankia chairman Rodrigo Rato and 32 members of the failed bank’s board were formally cited this week as suspects of fraud, misappropriation of funds, and the falsification of financial documents; a necessary but inconceivable turn of events compared to only two months ago. Ultimately, however, unless the long-yearned European breakthrough (which nobody has managed to properly define) occurs soon and some form of economic upturn begins to be seen as within reach, there is no reason to believe that Spain’s situation will improve over the next several months. If the summer turns out to be as “hot” as expected, Rajoy may at least have to revise his communication strategy and start facing the public. The cooling variables which currently work in favor of keeping society simmering in a state of fear rather than boiling with outrage may not hold the fire.
Greece's newly confident coalition party has issued a list of zee-demands, via Bloomberg:
- GREECE TO PRESS TROIKA ON NO JOB CUTS IN PUBLIC SECTOR
- GREEK COALITION PARTIES WANT TO RETRACT CUT TO MINIMUM WAGE
- GREECE TO PRESS TROIKA ON NO FURTHER WAGE CUTS FOR 2013-2014
And of course TROIKA will be happy to comply, in exchange for some of that shiny yellow stuff (as we noted here). Though we have a response already:
- DE JAGER: THERE WILL BE NO SOFTENING OF CONDITIONS FOR GREECE