Following our post yesterday, in which we calculated the levels of ELA haircuts that would result in corresponding deposit haircuts, we - and the rest of the world - were patiently waiting to see if the ECB would commence using its nuclear option, first with a small increase in haircuts, then as we got closer to Sunday, with larger ones. Moments ago we got the answer, when the ECB not only kept the ELA frozen as expected, thus requiring the continuation of the Greek capital controls, but decided against a collateral haircut.
ECB SAID TO TAKE NO DECISION ON GREEK COLLATERAL HAIRCUT
In other words, so far Varoufakis' thesis remains intact, and the ECB has refused to push the "nuclear option" launch button.
Investors are losing money, which strikes us as largely inevitable with asset prices where they are and economic growth and profits on a downward trajectory. Losing the least amount of money may be the best source of success this year.
DIJSSELBLOEM SAYS SEES NO GROUNDS FOR FURTHER GREECE TALKS
DIJSSELBLOEM SAYS WILL BE NO TALKS IN COMING DAYS
DIJSSELBLOEM SAYS WILL WAIT FOR OUTCOME OF GREEK REFERENDUM
DIJSSELBLOEM SAYS WILL TAKE INTO ACCOUNT OUTCOME OF SUNDAY VOTE
The Export-Import Bank died last night when its charter expired. After 81 years, what is commonly known as Boeing’s Bank is headed toward Washington’s trash bin. When Congress returns it could revive Ex-Im, which primarily subsidizes big business exports. But a proper burial for what Barack Obama once called “corporate welfare” would save Americans money, reduce economic injustice, and promote economic growth. Ex-Im’s closure is a very rare victory for the good guys in Washington. Crony capitalism is running rampant in America, undermining confidence in a market economy.
Confused as to how to vote Sunday? Starting to understand having your cake and eating it to may not work? Greek FinMin Varoufakis has six simple reasons to "just say no"...
Tsipras is calling for 'No' Vote in July 5 Referendum, but I think Greece most likely would not survive a Grexit.
What if Berlin and Frankfurt do not budge? What if they tell Athens to ‘go jump of the tallest cliff’? I have good cause to hope that Berlin will prefer to accommodate the Greek government and to look with a great deal more ‘kindness’ the ‘request’ for a debt relief conference. And if it does not, and wishes to bring the Eurozone down with it, let it do its worst, I say.
Surprise! The Eurogroup conference call has ended and there's no deal in sight until after the referendum.
*KAZIMIR SAYS NO GREECE TALKS UNTIL AFTER REFERENDUM
Small Caps are leading the way...
"Today is Day 1 of Year 7 of the 'recovery', and yet economists everywhere proclaims 3% growth is just around the corner," rages Jim Bianco as he addresses what 'bugs him', exclaiming "that ship has sailed." Bianco and Santelli go on to slay Keynesian big government dragons and the incessant bullshit from officials like Jack Lew who opine on Greece and other potential systemic risks as being a non-event - "what is priced in is that everything will work itself out at the 11th hour," leaving a huge asymmetric risk. Well worth the price of admission...
"There is certainly an unusual feeling of calm in the air. Citizens seem a bit more polite and helpful to one another than before, with no shortage of clever comments to break the tension on everyone’s mind being all in the same boat. My first thought was to assume a newfound “keep calm and soldier on” state of unity among the populace. But this is Greece, not Northern Europe. the words “quiet” and “calm” never share a sentence here. No, this was something different, I believe, more of a “laugh to keep from crying” state of mind. And being very experienced with Greece and Greek culture for my entire life, this realization was off-putting to say the least."
At the end of the day, the “Greek” issue is in fact a “debt” issue. And Greece is just a drop in the ocean of debt sloshing around the financial system.
TSIPRAS CALLS FOR `NO' VOTE IN JULY 5 REFERENDUM
GREECE RECEIVED BETTER PROPOSALS FOR DEBT AFTER REFERENDUM CALL