Merrill Lynch: "Greek Risk Is Back"

Tyler Durden's picture

You read about it here first (here and here). Now it is time for the sellside (whose products your soft dollars so generously fund) to wake up to what is happening next week.

From Bank of Countrywide Lynch.

Greek Risk Is Back


The estimated majority margin of only 5 votes for a key parliamentary vote on Wednesday seems too small to feel comfortable. If the vote goes wrong, Greece exit scenarios will come back.


Don't let Greek fatigue blindside you Greece is a key risk next week. The Parliament will vote on a new austerity and reform package on Wednesday and the 2013 budget on Sunday, following substantial delays in the negotiations with the Troika. The risk of a negative vote on Wednesday is real, as Democratic Left (third party in government coalition) is threatening to vote against the package because of opposition to labour market reforms, while a number of PASOK parliamentarians (second party in coalition) are threatening to vote against the package because they believe that it is against the coalition government agreement. Assuming these threats materialize, the government majority drops from 25 to 5 (it was 29 after the last election).


This is far from a comfortable margin. A negative vote will be a very negative event for the markets in our view, as Greece is unlikely to receive the next tranche from the Troika and markets could start pricing a Greek Euro exit. Even if the vote is positive, a small majority raises questions about the sustainability of the government and suggests that future votes on program reforms could be at risk. In the meantime, the continuous deterioration of government debt dynamics makes an official sector haircut inevitable in our view. Indeed, we believe that the IMF cannot disburse its part of the next tranche, unless debt sustainability is restored

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TeamDepends's picture

Greek is always risky.

redpill's picture

Unless you're talking about tzatziki sauce, that shit is the bomb.

malikai's picture

Oh how I miss a good Gyro.

Over here all we get is those cheap Turkish imitations (donar kebab).

Manthong's picture

Washed down with a vintage Retsina.

TeamDepends's picture

Spanikopita, so good and so good for you.

caconhma's picture

I am just sick and tired with all this Creek BS. Enough is enough. How long can it go?

crusty curmudgeon's picture

"The risk of a negative vote on Wednesday is real..."

Coincidentally (of course), it looks like it will go on at least until the day after the US election.

Middle_Finger_Market's picture

Geithners plan culminates...muhahahahah muhahahahahahahahahaha muhahahahahahaahhaa

Drachma's picture

Spanakotiropita. Don't forget the cheese.

monkeyboy's picture

Greek is always risky.


Pretty much guaranteed to end in shit.

LongSoupLine's picture

...guaranteed to end in shit.


yep...that's how it goes when you go Greek.


(edit: wow, I see the greek trolls are out today.) #winning

Dr. Engali's picture

Hey Merrill..I would like to personally thank you for the fiat I made buying puts on your company during the crisis... the proceeds unfortunately are now located at the bottom of lake lost in an terrible boating accident.

SmallerGovNow2's picture

The proceeds at the bottom of that lake are taking a major pounding this morning (ouch).  We test 1650 for gold or 29 for silver and I'm BTFD...

SWRichmond's picture

"Greek Risk Is Back"

When did it leave?

derek_vineyard's picture

how the f**k did qe, kick da can, economic number bullshitting last all the way to the election?

i thot it would cave in first

Nothing To See Here's picture

I find your lack of faith disturbing

Lukacko's picture

If You See Something, Say Something

Abitdodgie's picture

Whats Greece done in this artical , thats right NOTHING as per usual , but lets pretend that there is going to be a vote, no a meeting, no a who gives a fuck , untill guns are involved NOTHING will change. 

WhiteNight123129's picture

Merrill should have used the title "Merrill has taken its pills for memory loss today"

Pure Evil's picture

This old chestnut again? How many more muppets can they soak on this charade?

Most of all, do the demonstrators have it within to offer more blood on the streets?

kito's picture

doc, you better hold on to much of that fiat, you are going to need it in the coming storm.....................

Dr. Engali's picture

Hey kito...I keep plenty in a secure location. There is just enough in the system to pay the bills..the rest gets squirreled away.

tocointhephrase's picture

I think what kito means is that as there is a storm (Sandy) the power might go down and hence you need some fuel (fiat) to burn to keep warm!

sickofthepunx's picture

why anyone would keep cash in a bank when interest rates are zero is beyond me.

kito's picture

a dollar in hand is worth 2 in the bank.............

tocointhephrase's picture

I thought a $ in the hand is worth about 8 in the bank? It called fractional reserve banking!

Kalevi's picture

You obviously made a bundle...

From Tradewinds:

Russian authorities are searching for a cargoship that went missing with a cargo of gold in the Okhotsk Sea.
The vessel, named as Amurskaya, had 11 crew and 600 tons of the precious metal on board when it sent a signal for help on Sunday morning.A nearby tanker has been searching the area, but helicopters were unable to fly due to poor visibility.The vessel loaded the cargo in Kiran between October 24 and 27, and then headed to Okhotsk.Two small Russian ships are listed under the name Amurskaya: a 1,200-dwt motor hopper (built 1983) operated by Tunaki-2 of Astrakhan, and a 600-dwt general  cargo vessel (built 1973), managed by Morport of Khabarovsk.

Created: 09:18 GMT, 29 Oct 2012
By: Gary Dixon, London

centerline's picture

Tragic boating accidents becoming much more common these days I am to understand.

Dick Darlington's picture

And here comes Douche Bank begging for taxpayer bailout (of Douche Bank):

Deutsche Bank Folkerts-Landau Favors 3rd Greek Aid Package: FAZ

Dear fiat, Your days are numbered. And I'm glad for that.

JustObserving's picture

"Greek Risk Is Back"


Who cares?  Bernanke is currently buying $85 billion a month in assets, including $40 billion in mortgage-backed securities every month.

He can print Greece's GDP in just 4 months.  So what effect can Greece be expected to have on  US markets?  None.

The Fed controls every market including silver and gold.

slaughterer's picture

Easy money to be made on this fear next week.  

swissaustrian's picture

Time for the next GS puppet to become *dictator* errr president of Greece

HedgeFun's picture

Im surpised there are no comments on picture of the guys dancing in tutus and clown shoes

Bam_Man's picture

Don't make fun of them. That is the Greek "Honor Guard".

Dareconomics's picture

The political situation is becoming critical, and the government may fall. A Syriza led coalition promises to renegotiate the bailout.


SmallerGovNow2's picture

The jobs numbers have been confirmed...

Remember bagdad bob?

insanelysane's picture

Risk, Shmisk.  

Waitress Merkel, don't bring the check yet and another round of bailouts for my PIGS friends.

Calidreaming's picture

Greece is like Herpes.   may go away for a few weeks but you just cant get rid of it. 

Calidreaming's picture

Greece is like Herpes.   may go away for a few weeks but you just cant get rid of it. 

falak pema's picture

Greece is not like Herpes; The banksta cabal that will fold, if Greece kicks it in the balls like it should if the people had their way, is the Herpes. Its those greek oligarchy shills who have 800 Billion in Swiss land that are the true machiavellic shills and its the 10 million others who are the lambs we feed to the Hannibal Lector of the Banskta cabal. 

Stop watching the spyglass in inverted fashion.

Rip van Wrinkle's picture

I wondered why PMs were getting monkey hammered.

Yen Cross's picture

 I don't recall Greek risk ever leaving. It just stepped into the shitter, to change it's diapers for the next round of "nein nein nein" from Fraulein Merkel.

hugovanderbubble's picture

Spanish Covered Bonds are all in default - Be aware



Waterfall, Institutional, Legal , Counterparty and marketmaker risk, 


Market dry, like a freaking martini .



evolutionx's picture

PIGS Yields are climbing....

SmoothCoolSmoke's picture

There's gonna be a vote to screw the Banksters.  Ha-ha-ha-ha-ha-ha-ha-ha-ha-ha-ha-ha!  No, no really...stop it, yer kill'n me....... a vote.....Banksters screwed!  Too rich!  Ha-ha-ha-ha-ha-ha-ha-ha-ha!