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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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Thu, 11/01/2012 - 11:35 | Link to Comment Capitalist
Capitalist's picture

Since when did the constitution matter? Anyway I was waiting for the next episode of Keeping Up with the Karlushe Kardinals. In this week's show their Greek cousins come to the party!

Thu, 11/01/2012 - 11:41 | Link to Comment Ruffcut
Ruffcut's picture

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

Thu, 11/01/2012 - 11:45 | Link to Comment redpill
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!

Thu, 11/01/2012 - 12:05 | Link to Comment Lohn Jocke
Lohn Jocke's picture

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

Thu, 11/01/2012 - 17:34 | Link to Comment asteroids
asteroids's picture

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

Thu, 11/01/2012 - 21:33 | Link to Comment mjcOH1
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'."

Thu, 11/01/2012 - 13:37 | Link to Comment Gordon Freeman
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...

Thu, 11/01/2012 - 11:26 | Link to Comment maxmad
maxmad's picture

Ok now its over!!

Thu, 11/01/2012 - 11:30 | Link to Comment THX 1178
THX 1178's picture

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

Thu, 11/01/2012 - 11:51 | Link to Comment Pseudo Anonym
Pseudo Anonym's picture


Ok now its over!!

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

Thu, 11/01/2012 - 11:27 | Link to Comment spastic_colon
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]

Thu, 11/01/2012 - 11:47 | Link to Comment SmallerGovNow2
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...

Thu, 11/01/2012 - 12:43 | Link to Comment viahj
viahj's picture

it's like finding peanuts in your shit

Thu, 11/01/2012 - 11:28 | Link to Comment Cdad
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.

Thu, 11/01/2012 - 11:28 | Link to Comment john39
john39's picture

probably just want a payoff.

Thu, 11/01/2012 - 11:28 | Link to Comment Dr. Engali
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.

Thu, 11/01/2012 - 11:44 | Link to Comment Water Is Wet
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.

Thu, 11/01/2012 - 11:48 | Link to Comment RSBriggs
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.

Thu, 11/01/2012 - 11:52 | Link to Comment Dr. Engali
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.

Thu, 11/01/2012 - 12:44 | Link to Comment Nobody For President
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?

Thu, 11/01/2012 - 12:50 | Link to Comment Nobody For President
Nobody For President's picture


Thu, 11/01/2012 - 11:45 | Link to Comment sdmjake
sdmjake's picture

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

Thu, 11/01/2012 - 11:29 | Link to Comment becky quick and...
becky quick and her beautiful mouth's picture

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

Thu, 11/01/2012 - 11:38 | Link to Comment disabledvet
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.

Thu, 11/01/2012 - 11:52 | Link to Comment DosZap
DosZap's picture

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

Thu, 11/01/2012 - 11:29 | Link to Comment bigdumbnugly
bigdumbnugly's picture

how do we love thee market manipulation?

let me count the ways...

Thu, 11/01/2012 - 11:32 | Link to Comment VonManstein
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

Thu, 11/01/2012 - 11:44 | Link to Comment Joe Davola
Joe Davola's picture

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

Thu, 11/01/2012 - 11:32 | Link to Comment Jason T
Jason T's picture

So it begins...again. 

Thu, 11/01/2012 - 11:35 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

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


Thu, 11/01/2012 - 11:34 | Link to Comment This is the end
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.

Thu, 11/01/2012 - 11:57 | Link to Comment fuu
fuu's picture

Access Denied?

Thu, 11/01/2012 - 11:39 | Link to Comment PUD
PUD's picture

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


Thu, 11/01/2012 - 11:46 | Link to Comment miltiadis
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.


Thu, 11/01/2012 - 11:40 | Link to Comment youngman
youngman's picture

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

Thu, 11/01/2012 - 21:37 | Link to Comment mjcOH1
mjcOH1's picture

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

Thu, 11/01/2012 - 11:40 | Link to Comment Pretorian
Pretorian's picture

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

Thu, 11/01/2012 - 11:42 | Link to Comment lolmao500
lolmao500's picture


Maybe unconstitutional??? Great idea!

/soon to be made unconstitutional in every western country

Thu, 11/01/2012 - 11:45 | Link to Comment Schmuck Raker
Schmuck Raker's picture

I thought Greek judges were on strike this week.

Thu, 11/01/2012 - 11:46 | Link to Comment muppet_master
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 $$$$....some are patient = THEY MAKE $$$$.


Thu, 11/01/2012 - 11:49 | Link to Comment Antifaschistische
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.

Thu, 11/01/2012 - 11:55 | Link to Comment DosZap
DosZap's picture

So it begins...again. 

Greece is playing the suckers like a Sax.

Thu, 11/01/2012 - 12:06 | Link to Comment Spastica Rex
Spastica Rex's picture

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

Thu, 11/01/2012 - 12:01 | Link to Comment Herdee
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.

Thu, 11/01/2012 - 12:13 | Link to Comment youngman
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 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 when the equilibrium is hit....tonages for each country...then the event takes place

Thu, 11/01/2012 - 12:03 | Link to Comment Spastica Rex
Spastica Rex's picture

This joke isn't funny anymore.

Thu, 11/01/2012 - 12:03 | Link to Comment Duke Dog
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.

Thu, 11/01/2012 - 12:08 | Link to Comment ElvisDog
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.

Thu, 11/01/2012 - 12:15 | Link to Comment Banksters
Banksters's picture

The only solution is revolution.

Thu, 11/01/2012 - 12:23 | Link to Comment Banksters
Banksters's picture

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

Thu, 11/01/2012 - 12:18 | Link to Comment alfa
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.

Thu, 11/01/2012 - 12:26 | Link to Comment Inthemix96
Inthemix96's picture

Come on my Greek friends!!

Burn the fucker down, start at the parliament building (making sure those criminals are locked in), then burn the fucking rest.

The EU would be a damn sight better off without politicians and banksters anyhow.

Thu, 11/01/2012 - 12:27 | Link to Comment SilverMoneyBags
SilverMoneyBags's picture

So cutting spending is not allowed? Doesn't make sense.

Thu, 11/01/2012 - 12:43 | Link to Comment Joe A
Joe A's picture

They know the tricks in the book because they wrote the book. They have a couple of thousand of years experience with democracy, politics and intrigue. It is interesting to see they always pull a rabbit out of the hat just before some deadline.

Thu, 11/01/2012 - 12:58 | Link to Comment Nobody For President
Nobody For President's picture

Dear Troika,

Those darn judges won't let us do what you asked. Please send the money anyway - we promise to buy better judges. 

Sincerely, Greek Parliament

Thu, 11/01/2012 - 13:02 | Link to Comment Dareconomics
Dareconomics's picture

Ultimately, the court will vote to maintain the current status quo and will structure its opinion to do so.

Thu, 11/01/2012 - 13:03 | Link to Comment zebra
zebra's picture

Time to call ET for help!

Where is Elliot?


Thu, 11/01/2012 - 13:14 | Link to Comment pashley1411
pashley1411's picture

The legal system supports the current system and its priviledges; judges will be even more surprised by change as anyone else; promises are made, judges affirm.

Bankruptcy and runnning out of money is good; if governments didn't run out of money they would still be building pyramids.  

Thu, 11/01/2012 - 14:07 | Link to Comment toomanyfakecons...
toomanyfakeconservatives's picture

Unconstitutional? I'd like to laugh at other countries Constitutions and legal systems, but not until we clean house in America and arrest all the bankster-politicians in the U.S.A.

Thu, 11/01/2012 - 15:08 | Link to Comment luckylongshot
luckylongshot's picture

As Chris Hedges says... "Austerity is code for a banking takeover"...go the Greek court!!!

Thu, 11/01/2012 - 16:10 | Link to Comment northerngirl
northerngirl's picture

Why is this considered news anymore?  Greeks will not fix their problems until there is no money left for payroll, pensions, or anything else. 

Wed, 11/14/2012 - 19:30 | Link to Comment Mr Fix You Up Good
Mr Fix You Up Good's picture

If only they listened, dear lady.....

Wed, 11/14/2012 - 19:28 | Link to Comment Mr Fix You Up Good
Mr Fix You Up Good's picture

Who ever took a single decision byu a GREEK court seriously. People wake up. Chaff.

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