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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 - 11:41 | 2937647 Ruffcut
Ruffcut's picture

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

Thu, 11/01/2012 - 11:45 | 2937655 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 | 2937721 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 | 2938984 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 | 2939626 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 | 2938088 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 | 2937590 maxmad
maxmad's picture

Ok now its over!!

Thu, 11/01/2012 - 11:30 | 2937612 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 | 2937671 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 | 2937595 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 | 2937660 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 | 2937856 viahj
viahj's picture

it's like finding peanuts in your shit

Thu, 11/01/2012 - 11:28 | 2937597 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 | 2937600 john39
john39's picture

probably just want a payoff.

Thu, 11/01/2012 - 11:28 | 2937601 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 | 2937653 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 | 2937661 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 | 2937676 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 | 2937860 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 | 2937897 Nobody For President
Nobody For President's picture


Thu, 11/01/2012 - 11:45 | 2937656 sdmjake
sdmjake's picture

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


Thu, 11/01/2012 - 11:29 | 2937602 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 | 2937634 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 | 2937679 DosZap
DosZap's picture

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

Thu, 11/01/2012 - 11:29 | 2937609 bigdumbnugly
bigdumbnugly's picture

how do we love thee market manipulation?

let me count the ways...

Thu, 11/01/2012 - 11:32 | 2937614 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 | 2937617 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 | 2937620 Jason T
Jason T's picture

So it begins...again. 

Thu, 11/01/2012 - 11:35 | 2937625 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 | 2937627 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 | 2937662 fuu
fuu's picture

Access Denied?

Thu, 11/01/2012 - 11:39 | 2937635 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 | 2937637 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 | 2937638 youngman
youngman's picture

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

Thu, 11/01/2012 - 21:37 | 2939636 mjcOH1
mjcOH1's picture

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

Thu, 11/01/2012 - 11:40 | 2937642 Pretorian
Pretorian's picture

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

Thu, 11/01/2012 - 11:42 | 2937646 lolmao500
lolmao500's picture


Maybe unconstitutional??? Great idea!

/soon to be made unconstitutional in every western country

Thu, 11/01/2012 - 11:45 | 2937654 Schmuck Raker
Schmuck Raker's picture

I thought Greek judges were on strike this week.

Thu, 11/01/2012 - 11:46 | 2937657 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 | 2937663 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 | 2937687 DosZap
DosZap's picture

So it begins...again. 

Greece is playing the suckers like a Sax.

Thu, 11/01/2012 - 12:06 | 2937723 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 | 2937708 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 | 2937740 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 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

Thu, 11/01/2012 - 12:03 | 2937713 Spastica Rex
Spastica Rex's picture

This joke isn't funny anymore.

Thu, 11/01/2012 - 12:03 | 2937714 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 | 2937730 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 | 2937746 Banksters
Banksters's picture

The only solution is revolution.

Thu, 11/01/2012 - 12:23 | 2937747 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 | 2937760 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.

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