Risk Off: Greek Court Warns Troika-Demanded Austerity May Be Unconstitutional

Tyler Durden's picture

While Europe continues to plan and scheme, content in the knowledge that Greece can do nothing to derail plans of status quo preservation, especially ahead of next week's critical parliamentary vote that will see the country imposing even more austerity on its people (see the great profile in the AP today in "Hit by crisis, Greek society in free-fall"), Greece has just decided to pull a "Karlrushe Kardinals who say Nein" move, and as Reuters reported moments ago, the entire process may be scuttled by none other than yet another court, this time in Greece:


What this means is that suddenly Greece once again has all the leverage (recall that last year the mere threat of a Greek moratorium cost G-Pap his job), a development which in June sent Europe plunging on fears that Greece may vote itself out of the Eurozone, leading to a Grexit, the return of the Drachma, redenomination, collapse in risk levels, the apocalypse and other bad things.

Judging by the reaction in the EURUSD, risk is now once again off.

More from ANA via Bloomberg:

  • Greece’s Supreme Court of Audit ruled that Greek austerity measures including cuts to pensions and an increase in the retirement age may be unconstitutional, state- run Athens News Agency reports, without citing anyone.
  • Court of Audit almost unanimous in ruling the measures are unconstitutional, ANA says
  • Court ruled on pension cuts, retirement age and cuts to pensioners’ holiday bonuses, ANA says
  • Court says 5th cut to pensions in short period of time contravenes number of constitutional articles, ANA says

And just when the HFT momentum algos were ramping everything like you won't ever be able to buy below 1400 again...

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Ruffcut's picture

Just like here Gubbermint says "don't need no stinkin constitution".

redpill's picture

Seriously, Constitutions are ssssooooo 18th century. The future is all about hope, or uhm, the vision of Europe, uh, or something. Forward!

Lohn Jocke's picture

If only Germany would invade Greece again...that would surely save the Keynesian philosophy...

asteroids's picture

You only need to study the stock of NBG over the last few days. wow!

mjcOH1's picture

"I'll see your 'the spending reductions you are asking for are unconstitutional' and raise you two 'go fuck yourselves and beg for somebody else's tax dollars'."

Gordon Freeman's picture

The Greek Constitution can guarantee all the pie-in-the-sky it wants to--but if there ain't any more pie down here on the ground, dessert is definitely not going to be served...

This is no different than the conceit that U.S. public employees' retirement benefits are "guaranteed". Just try that one, when the 800lb gorilla tells you to piss off...

maxmad's picture

Ok now its over!!

THX 1178's picture

Now its over! I mean Now! No, wait Now. No, Now. Now. I mean then. I mean... Now.

Pseudo Anonym's picture


Ok now its over!!

a drop of less than 0.0042; it's done.  it' finished.  cue panic

spastic_colon's picture

dont worry it will only take the entire month of Nov to work off today's rally to print a barely positive month [sarc]

SmallerGovNow2's picture

Well it is a concerted effort between the lame stream media, TBTF banksters, and the Fed to pump the markets up...  To wit Marketwatch headlines...

"Economic data from the U.S. and China persuade investors that global recovery remains on track and equities respond. Auto sales and same-store receipts for October also grab attention."

A farcical freakin joke...

viahj's picture

it's like finding peanuts in your shit

Cdad's picture

Bring out the stud man U$D, all pissed off at every single criminal in the Wall Street sydicate, screaming Ben Bernanke's name, lubed up and ready to make "Bankers Gone Wild" videos.

john39's picture

probably just want a payoff.

Dr. Engali's picture

Yeah just another court that wants to be wined and dined like the German supreme court. They will be bought off with hookers and blow like the rest of the basturds....Roberts comes to mind.

Water Is Wet's picture


I wanted you to see this.  In TX, Ron Paul is not an eligible write-in candidate.  Here's the list of eligible write-ins.


Voting for RP in Texas is a waste of time.

RSBriggs's picture

Ron Paul is not an elgible write in. in any state.  He deliberately did not apply as a thrid party, write-in elgible, candidate in any state.

Dr. Engali's picture

That's screwed up, you should be able to write in who you wish.I'm headed out now to lunch and to vote. If it's the same way here I will just vote for some oher eligible write in.

Nobody For President's picture

You can. I wrote him in anyway. So my vote 'won't count'. As if yours does, voting for O or Mitts?

sdmjake's picture

Hookers n blow: you'll find them in the oral fixation chart...


becky quick and her beautiful mouth's picture

this may sound harsh, but can somebody just blow up greece already?

disabledvet's picture

You mean "can Greece finally blow up the euro debt machine once and for all." in other words the euro is like a "debt Blob" that needs to expand and subsume all those who who come underneath it. "Just move away" seems logical...and then they can become part of "the worthless dollar bloc" and get oil.

DosZap's picture

I NUB Greece, they are playing the EU like the scammers thet are.((((((((((((((((((((;

bigdumbnugly's picture

how do we love thee market manipulation?

let me count the ways...

VonManstein's picture

Tyler you do know the SPX has divorced itself from FX and all reality? Saying "Risk off" doesnt work too well. And TSY dont agree with "Risk off" either. Its all screwed up. cant go on much longer

Joe Davola's picture

So judges are supposed to read and apply their constitutions - strange concepts these Greeks have.

Jason T's picture

So it begins...again. 

Mr Lennon Hendrix's picture

And in 5 years something will be done about all of the unconstitutional bullshit, but until then....


This is the end's picture

Quite a risk off event, Tyler: a few pips down in the EUR/USD (look for them to be regained shortly). Otherwise, VIX is down huge, S&P up over 1%, bonds down. I am sure Bernank & Co. will take "Risk Off" events like this every day of the week.

PUD's picture

ISM's Holcomb says orders gain is "decieving" and says more areas are reporting a drop in orders


miltiadis's picture

Maybe? the verdict was that they are unconstitutional so please fix the title.
Moreover it is called Supreme Court of Audit and not a Greek random court.


youngman's picture

Funny but if you bought the Greek stock market in October..you were a big winner.....how does that work again????

mjcOH1's picture

Sort of like the Zim stock exchange - until it doesn't.

Pretorian's picture

They are Greeks.,,, Wbat more to say,

lolmao500's picture


Maybe unconstitutional??? Great idea!

/soon to be made unconstitutional in every western country

Schmuck Raker's picture

I thought Greek judges were on strike this week.

muppet_master's picture

spx pumped to 1426

on 10/24/12 when spx @ 1417, i said IF u were patient u might be able to SHORT @ spx 1425+...its now @ 1427....some people aren't patient....=they don't make $$$$....some are patient = THEY MAKE $$$$.



Antifaschistische's picture

Doesn't Goldman Sachs have the World Constitutional Authority to appoint new Greek Judges?   This won't be an issue in the next few days.

DosZap's picture

So it begins...again. 

Greece is playing the suckers like a Sax.

Spastica Rex's picture

Who's usin' who?
What should we do?
Well you can't be a pimp
And a prostitute too.

Herdee's picture

It's all about endless delay of a huge "TRIGGER".Everyone knows that eventually there has to be a huge washout of bad debt worldwide.When that happens is anyone's guess but it seems unlikely now that Europe can copy what Japan has done.As well,they've been unable to suck-in the Bank of England and the politicians there in order to gain more liquidity somehow.Take it on the chin Europe and bite the bullet.Nothing wrong with starting over again but somehow I doubt that they'll be able to install a "USA" type monetary system either.I'm sticking with Rubini's analysis of the corruption.2013 baby,she looks like a perfect storm ready to unfold.

youngman's picture

I am starting to think something like this is in the works....but the countries have to get to some equilibrium somehow and with some pre approved amount or value...think of it this way...if you knew your debt was going away..you would issue trillion of new debt right before the event...but that would devalue your neighbors value...I still think its gold and silver...that is why it has not moved much in price..but it is moving to new locations physically...so when the equilibrium is hit....tonages for each country...then the event takes place

Spastica Rex's picture

This joke isn't funny anymore.

Duke Dog's picture

Simply going through the process to make it all legal like. Same thing happens here - just go ahead and do whatever they want, then they will loop back around and tie up the loose ends later. Who really believes that when it all comes out in the end, the Greek courts will rule against the PTB? I'll bet at best, the jurists want a larger piece of pie.

ElvisDog's picture

Court mandates are always such a hoot. A court can mandate larger pensions and lower retirement age - but how is Greece going to pay for those mandates? Mandates without money don't mean shit.

Banksters's picture

The only solution is revolution.

Banksters's picture

h Has anyone from gs gone to jail for cooking Greece's books? Didn't think so...

alfa's picture

Judgment of the Court

"Unconstitutional new cuts in pensions' Declared unconstitutional by the plenary of the Court in their entirety the provisions of the new bill mnimoniakou with reductions in pensions, cut EKAS and raising the retirement age.

Specifically, the Court of Auditors, after two meetings, held to be contrary to Articles 2,4,25 and 22 of the Constitution that the provisions of the new bill mnimoniakou provide:

-Reductions to pensions from 5 to 10% since 1/1/2013

Crop-Easter and Christmas gifts and holiday pay

Crop-EKAS due to the increase in the age limit to 65 years

- Increase the retirement age from 65 years old to 67

All these orders were deemed unconstitutional by the plenary Court.