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IMF Says Another Greek Bailout Necessary

Tyler Durden's picture


Just six short months ago (before GGBs rallied 119% and the Athens Stock Index 53%), the EU and IMF agreed on Greek Debt/GDP targets, pronounced the nation "fixed", and went on winter vacation. Well, surprise, the hockey-stick of expected GDP has not come to pass and now, as Der Spiegel reports, the IMF is refusing to participate in further rescue programs for Greece unless financing for the nation is secured for the next 12 months - in other words - a new haircut for Greece will be required to cover the EUR4.6 billion funding shortfall.


Christine Lagarde's 'fund' is putting pressure on EUR members, after their mea culpa last week at the biliousness of their previous efforts to save the troubled PIIG nation, to agree to these new haircuts. This will not be a pretty dance - as with Merkel now a few short months away from a general election (and Germany owed EUR15 billion in KfW loans and a further EUR35 billion contributions to ESM/EFSF mechanisms), any agreement on her part would solidify opposition parties' proof that taxpayer money was lost (and the good money after bad argument).

Perhaps that is why GGB prices have dropped over 10% in the last week?


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Sun, 06/09/2013 - 19:18 | 3640362 bugs_
bugs_'s picture

Don't you wish you could have just one?

Sun, 06/09/2013 - 19:21 | 3640374 cifo
cifo's picture

Now, if we could only get a good gold whistlerblower....

Sun, 06/09/2013 - 19:28 | 3640400 This just in
This just in's picture

Who would play the role of the whistler?

Sun, 06/09/2013 - 19:33 | 3640417 ShrNfr
ShrNfr's picture

Is that what Bill Clinton calls it??

Sun, 06/09/2013 - 19:37 | 3640436 espirit
espirit's picture

Hockey Schict, or scythe?

Sun, 06/09/2013 - 19:46 | 3640481 Pure Evil
Pure Evil's picture

Its all biliousness to me.

Sun, 06/09/2013 - 19:50 | 3640495 knukles
knukles's picture

This gives hole new meaning to Greek Style, as in "taking it up the butt", or "no ifs ends your butts", or "butt butt butt"...
Will this shit never stop?

The world has gone mad, I tell ya', mad.

Sun, 06/09/2013 - 19:58 | 3640536 Pure Evil
Pure Evil's picture

Is it time to move to Butt Fuck Egypt yet?

Sun, 06/09/2013 - 20:05 | 3640553 flacon
flacon's picture

Egypt? I thought it was Luxembourg's turn, then Venezuela, then Italy, Spain, Portugal, and THEN Egypt, and THEN Iran, and THEN Japan. It's getting so hard to keep track these days.... 


Shit I forgot Argentina... see-whud-I-mean?!

Sun, 06/09/2013 - 20:31 | 3640630 cifo
cifo's picture

Honestly, I am proud to be in such a great company! You guys rock! This is better than i scream :)

Sun, 06/09/2013 - 20:29 | 3640624 spine001
spine001's picture

Greece, why now? That is the key question to delve on? They all know it is bankrupt and insolvent, so why do this now? The IMF responds to the USA...

Sun, 06/09/2013 - 20:07 | 3640559 Midasking
Midasking's picture

who didn't see that one coming.. I am more concerned about who is going to bailout Uncle Scam..

Sun, 06/09/2013 - 21:28 | 3640794 lolmao500
lolmao500's picture

Taxpayers will, of course.

Sun, 06/09/2013 - 19:19 | 3640366 Chaffinch
Chaffinch's picture

Will that make it 3 bailouts or 4?

I'm losing count here...

Sun, 06/09/2013 - 19:36 | 3640430 EscapeKey
EscapeKey's picture

It would make it the 4th, or the 3rd which would "never happen".

Sun, 06/09/2013 - 19:41 | 3640460 asteroids
asteroids's picture

Greece is a black hole. The money goes into the hole and goes straight to external banks. The people just get poorer. Unemployment continues to rise along with poverty and suicide. The Greeks need to stop this themselves. NBG did a 10-1 reverse split and it's fallen terribly in the last few weeks. Wake up Greeks!

Sun, 06/09/2013 - 20:58 | 3640708 TheFourthStooge-ing
TheFourthStooge-ing's picture

I must admit, the necessity of another Greek bailout comes as a complete and total surprise to me. I am utterly at a loss for words regarding this unexpected, unpredictable, and shocking turn of happenstance.

Mon, 06/10/2013 - 01:32 | 3641309 Nobody For President
Nobody For President's picture

I, too, am shocked - SHOCKED at this unbelievable turn of events. However, there is no question that the forthcoming 'bail in' solution that is sure to emerge will finally turn around the Greek economy and return this long suffering country and its people to health and prosperity.

Sun, 06/09/2013 - 19:42 | 3640461 slaughterer
slaughterer's picture

Not a bailout, a BAIL-IN is scheduled to happen.  Go to nail those rich Greek tax-evading shipping millionaires and save Merkel's election chances.  

Sun, 06/09/2013 - 20:20 | 3640581 BigJim
BigJim's picture

 Go to nail those rich Greek tax-evading shipping millionaires and save Merkel's election chances. 

If they've got any sense all their money will be in Germany.

I suppose the Krauts could choose to help Greece 'bail-in' those holdings, though. Where else to park your millions... Hmmm.. Cyprus? Luxembourg? Switzerland?

All this shit going on, and Europeans STILL don't understand having phyz. How quickly we forget...

Sun, 06/09/2013 - 19:19 | 3640367 Devotional
Devotional's picture

The EU is doomed.

Sun, 06/09/2013 - 19:33 | 3640418 bank guy in Brussels
bank guy in Brussels's picture

Really it's more that the euro-zone is doomed, it must split up

My thought is the northern - Germanic countries will keep the euro but the Mediterranean countries including France will all leave

The EU itself will go into reverse, and become what it was 15 years ago ... a somewhat sleepy body overseeing a friendly customs and free trading area

With Inspector Clouseau in charge of security once again, like he should be

Sun, 06/09/2013 - 19:41 | 3640456 Never One Roach
Never One Roach's picture

Bank guy, do you think the Euro could come out of this stronger then before? Germany has lots o gold as do many of the other northern countries...and lots of resources in highly educated people.

Sun, 06/09/2013 - 19:48 | 3640490 otto skorzeny
otto skorzeny's picture

Germany loves the weak EU states because it keeps the Euro from ripping as high as the the Swiss franc.

Sun, 06/09/2013 - 20:25 | 3640610 BigJim
BigJim's picture

Well, they can't have both ways. They vendor-financed the PIIGS' German purchases, and now the PIIGS can't pay.

So... either they'll have to bail them (ie, their own banks) out, or force them into a generations-long depression that will trigger EZ-exit and default anyway, or end the Euro.

There's no easy solution for a creditor that's lent too much money to the unproductive without sufficient collateral... I suppose the PIIGS can just give over their countries to Germany as payment; but will their people stand for it?

Sun, 06/09/2013 - 19:46 | 3640482 otto skorzeny
otto skorzeny's picture

I hope they have a 2 tiered Euro - it as expensive as hell to go to Italy.

Sun, 06/09/2013 - 20:26 | 3640613 BigJim
BigJim's picture

Copy that! I'm looking forward to cheap hot holidays again myself!

Sun, 06/09/2013 - 20:29 | 3640621 Kirk2NCC1701
Kirk2NCC1701's picture

I miss the old Europe. When things were cheap in the southern and eastern countries, and they did not have the 'refugee' riff-raff and associated drugs & crime.

And when the only criminal record your neighbor had, was "Please release Me" by Englebert Humperdink.

Sun, 06/09/2013 - 19:19 | 3640369 Dr. Engali
Dr. Engali's picture

Now that Abe has blown his wad the focus must be turned on Europe....... again. Four years later and we're still talking about the same crap.

Sun, 06/09/2013 - 19:37 | 3640434 butchee
butchee's picture

Are you sayin' that the BoE's new fiat flingin' Carney-vore won't pull the global financial ponzi's fat outta the fire?

Sun, 06/09/2013 - 19:49 | 3640493 NoDebt
NoDebt's picture

They go seasonally.  Europe in the summer, us in the fall and Japan in the spring.

Word to the Greeks (which they won't listen to, even with the specatcle of Cyprus just off their coast):

JUST. WALK. THE. FUCK. AWAY. ALREADY.  You lost.  Stop playing.

Sun, 06/09/2013 - 20:27 | 3640616 BigJim
BigJim's picture

Learn German and open a kebab store in Berlin, Stavros.

Mon, 06/10/2013 - 07:30 | 3641522 Terp
Terp's picture



As every sane person has been saying for 3 years now.

But somehow they want us to believe that their busload of overpaid econ smartasses couldn´t possibly have seen that coming. Ridiculous.

Yet nobody calls bullshit. Watch the idiots in this country vote for Jack Johnson instead of John Jackson in September.

It makes you want to puke.

Sun, 06/09/2013 - 19:22 | 3640376 darteaus
darteaus's picture

Time for Greek bank depositors to line up and grab the ankles.

Sun, 06/09/2013 - 19:25 | 3640390 Zero Point
Zero Point's picture

Is it wrong to find the lack of bank runs throughout Europe, hilarious?

Sun, 06/09/2013 - 19:27 | 3640399 Dr. Engali
Dr. Engali's picture

Is it even worse to find the lack of bank runs in the U.S. even more hilarious. Wait until we get a bank holiday here.

Sun, 06/09/2013 - 19:41 | 3640457 Peter Pan
Peter Pan's picture

What I find even more amusing is that fractional reserve banking can exist for so long in spite of such leverage. It is for this reason tht I fear that ths charade is not over by a long stretch.

Sun, 06/09/2013 - 19:43 | 3640467 Urban Redneck
Urban Redneck's picture

Between what's going on in Japan and with debt PIIGS, the absence of a investors burning rubber to get into USTs should be skidmark TERRIFYING.

Sun, 06/09/2013 - 19:40 | 3640453 bank guy in Brussels
bank guy in Brussels's picture

There actually may be large scale bank runs in southern Europe by large depositors, but we are not being told

Some reports say that the ECB has been 'delaying' certain key statistics ... and the thought is that the ECB is secretly pumping in printed euros to compensate for deposits that are fleeing

There is a dark game going on between Mario Draghi and Angela Merkel before the German election in September ... perhaps a secret deal, Mario keeps the euro-zone afloat till then, and if she gets back in, then Mario can print like Japan, after some 'crisis', easy enough to spark given how bad the banks are here

It may be a while before we really know what is going on

Sun, 06/09/2013 - 19:52 | 3640512 NoDebt
NoDebt's picture

I agree completely.  It's been quiet over there.  Too quiet and for too long.  They have been up to no good behind the scenes there almost certainly.

Sun, 06/09/2013 - 20:29 | 3640622 BigJim
BigJim's picture

Tush, such suspicious minds you have!

Next you'll be saying they're recording our every keystroke.

Mon, 06/10/2013 - 02:00 | 3641341 Nobody For President
Nobody For President's picture

Lordie, I wish I didn't have to give you a greenie for that.

Mon, 06/10/2013 - 07:33 | 3641528 Terp
Terp's picture

Its a good thing they can entertain the populace with sob stories of flooded villages for a while longer.


Sun, 06/09/2013 - 19:22 | 3640377 disabledvet
disabledvet's picture

i know the WSJ reported on all the money that (was) made in these bets "over there"...but are we talking about holding this paper to maturity or what? how about a little reporting on matters financial for the first time in history WSJ? I mean GIVE THE WORLD A BREAK okay. Now...let's proceed to "the Big Story" which is how Japan...which is going on 20 years of being going to avoid the same thing.

Sun, 06/09/2013 - 19:34 | 3640421 EscapeKey
EscapeKey's picture

Buying an asset of no actual value in the hope of selling it to the greater fool down the road.

In other words; WSJ value investing.

Sun, 06/09/2013 - 20:31 | 3640632 BigJim
BigJim's picture

Jeez, relax, will you? The CBs will just buy EVERYTHING that threatens to lose enough value to threaten 'our' system's stability. They'll hold it to maturity and then 'poof' the problem goes away.

See? Simples. 

Sun, 06/09/2013 - 19:22 | 3640378 Yen Cross
Yen Cross's picture

    It seems like just yesterday we were discussing the plight of Greece. OH WAIT, It was just yesterday!

   Watch the rats run to unload GGBs.

Sun, 06/09/2013 - 19:26 | 3640381 Ineverslice
Ineverslice's picture


Missed it by that much.

Sun, 06/09/2013 - 19:29 | 3640407 suteibu
suteibu's picture

But Hollande stood in Tokyo with Abe last week and said that the EU crisis was over. 

"What you need to understand here in Japan is that the crisis in Europe is over."

Surely he wouldn't lie to the Japanese...would he?

Sun, 06/09/2013 - 20:09 | 3640562 Cognitive Dissonance
Cognitive Dissonance's picture

The only people who can be (successfully) lied to are those who lie to themselves.

Sun, 06/09/2013 - 20:16 | 3640584 suteibu
suteibu's picture

Here's another one to test this axiom.  Japan just released "revised" GDP numbers indicating that the economy grew an annualized 4.1% in the first quarter instead of the previously reported 3.5%.  Surely this isn't a lie, right?

Sun, 06/09/2013 - 20:32 | 3640635 BigJim
BigJim's picture

I LOVE GDP! All you do is 'underestimate' inflation and bingo! Recession gone.

Mon, 06/10/2013 - 01:53 | 3641336 Bunga Bunga
Bunga Bunga's picture

LOL  "When it becomes serious, you have to lie"... right?

Jean-Claude Juncker, Luxembourg PM and Head Euro-Zone Finance Minister says "When it becomes serious, you have to lie"

Sun, 06/09/2013 - 19:32 | 3640412 Peter Pan
Peter Pan's picture

Just another extend and pretend?

Greece can bail herself out by walking away from the Euro.

Sun, 06/09/2013 - 19:32 | 3640414 Curt W
Curt W's picture

Greek bank deposits are going to disappear soon.

Sun, 06/09/2013 - 19:38 | 3640444 Peter Pan
Peter Pan's picture

They are going to be given a haircut that is even going to leave gashes on the scalp.

Sun, 06/09/2013 - 19:43 | 3640471 ThunderingTurd
ThunderingTurd's picture

No doubt! If I were a Greek citizen with money in the bank I would be yanking it faster than coked out Maria Blowtoromo sucking dick!

Sun, 06/09/2013 - 19:59 | 3640538 espirit
espirit's picture

I had to wash my eyes out with soap after reading your post.

Sun, 06/09/2013 - 20:06 | 3640557 Curt W
Curt W's picture

Next time try this

Sun, 06/09/2013 - 20:01 | 3640546 knukles
knukles's picture

I am, uh... just, ah... not ... quite sure... what to make of that, uh... "comment"? 

I mean.... there are a dozen or so of conflicting visuals slithering through my head, none of which are very appealing.

Amazing, the power of suggestion.


I cannot even imagine her undressed....
That is cruel, man...

How will I sleep tonight?

Sun, 06/09/2013 - 20:14 | 3640577 Cognitive Dissonance
Cognitive Dissonance's picture

Try (mental) blinders. It's a sociopath's recipe to a good nights sleep.

Sun, 06/09/2013 - 20:15 | 3640580 DoChenRollingBearing
DoChenRollingBearing's picture

Eewwww!  You're right!  Sometimes words have impressive power, don't they?

Mon, 06/10/2013 - 02:08 | 3641346 Nobody For President
Nobody For President's picture

God, that mouth, that wiiiiiiiiiiiiide smile...

Sun, 06/09/2013 - 19:38 | 3640447 Tortfeasor
Tortfeasor's picture


Sun, 06/09/2013 - 19:39 | 3640451 buzzsaw99
buzzsaw99's picture


Sun, 06/09/2013 - 19:40 | 3640454 machineh
machineh's picture

The theory of the Versailles conference in 1919 was that Germany could be forced to pay multiples of its GDP in hard currency.

It didn't work. And it's not gonna work in Greece either, with Germany wielding the whip this time round.

The bailouts will continue until the weakest link snaps for good.

Sun, 06/09/2013 - 19:47 | 3640484 Atomizer
Atomizer's picture

IMF high interest Poverty Loan repayment program to PIIGS hits US taxpayer feeding trough replenishment impasse.



Don’t worry. The New FIN iPad Compulsive Debt Accruement App Puts Fund’s Finances at Your Fingertips.

Sun, 06/09/2013 - 20:11 | 3640565 all-priced-in
all-priced-in's picture

Maybe Greece should start accepting USA EBT cards. /sarc

Sun, 06/09/2013 - 20:16 | 3640570 gatorengineer
gatorengineer's picture

Wonder what the real hole is 20?  



Sun, 06/09/2013 - 20:14 | 3640576 Tombstone
Tombstone's picture

Can't we just send Benny over there to fix things? 

Sun, 06/09/2013 - 20:36 | 3640646 BigJim
BigJim's picture

You're suggesting there is more than one human being on this planet with the power to hold down the 'control' and 'p' keys simultaneously?

Gadzooks... where could this marvel of monetary sagacity be found? 

Sun, 06/09/2013 - 20:18 | 3640595 nathan1234
nathan1234's picture

Here comes the Bail in ( not the sun)

Any money left in Greek Banks ! ( other than that of the Govt)

Sun, 06/09/2013 - 20:22 | 3640606 q99x2
q99x2's picture

Is Greece going to default?

Mon, 06/10/2013 - 06:26 | 3641473 smacker
smacker's picture

They already did but it was renamed.

Sun, 06/09/2013 - 20:27 | 3640617 Spastica Rex
Spastica Rex's picture

Sixth time's a charm?

Sun, 06/09/2013 - 20:34 | 3640641 Kirk2NCC1701
Kirk2NCC1701's picture

The Greeks need to either get brains, balls or expect things to get worse.

Is there not a real man left in that country? What a bunch of 'Malakas'!

The Greek philosophers and heroes must be spinning in their graves.

Sun, 06/09/2013 - 20:38 | 3640650 BigJim
BigJim's picture

People just refuse to get educated on the monetary system. It's astounding to us here at ZH but 99% of the world really don't want to know how this shit works. They REALLY don't.

Sun, 06/09/2013 - 20:34 | 3640642 lolmao500
lolmao500's picture

And when does Greece runs out of money?

Mon, 06/10/2013 - 02:10 | 3641348 Nobody For President
Nobody For President's picture

July, 2008

Sun, 06/09/2013 - 20:44 | 3640669 yogibear
yogibear's picture

Lost count. What bailout number is this?

Sun, 06/09/2013 - 21:02 | 3640720 PaperBear
PaperBear's picture

Well done, IMF, with the other ‘rescues’ of Greece.

Mon, 06/10/2013 - 00:04 | 3641199 darteaus
darteaus's picture


Mon, 06/10/2013 - 00:27 | 3641229 John Law Lives
John Law Lives's picture

Amazing how rapid GDP recovery in Greece doesn't tend to materialize when there are NO FVCKING JOBS.


Mon, 06/10/2013 - 01:50 | 3641331 They Tried to S...
They Tried to Steal My Gold's picture

This is what happen when you have a weak internal survellance system of your people.


Its all Greek to me....

Mon, 06/10/2013 - 02:15 | 3641354 dojufitz
dojufitz's picture

If we are all here on ZH talking about this crap in 2020..................


i'm simply going to have to drink more wine..................

as it is i drink too much.............i might even take up cigar smoking............

Mon, 06/10/2013 - 05:53 | 3641444 falak pema
falak pema's picture

its time u guys all realise that Greece is just a conduit for the Troika to fleece people and pay the banks blood transfusions to keep the system alive.

This blood line will continue all the while there is no growth as those banks are so structurally screwed you have to keep throwing money at them. 

What the MIC scams do, via the "cyber" security and anti terrorist government spending lining pockets of Carlyle and consorts now owning the intelligence network of Empire, the Troika and WS scams copy to keep banks afloat and the oligarchy markets in constant levitation in monetary gravity-less space odyssey. Its all part of the global matrix. 

"We are building a new world, one where welfare pampering of first world ends and nation states bend so that world governance of the elite begins. Our catholic kings of NWO, RR and Maggie, laid out our flight plans from day one and the Bushes put it more into place with global outsourcing, opening up the party to global oligarchs, and Clinton/Greenspan then Zirped and Gl-Steagall revoked it to take-off zone. GWB  hammered it home in war on terror meme and now our blue print is tightly in place for this future century. We are the world and its worth living, if you be the happy few. AMen!

"And don't be fooled by those who think this thing will implode under debt overload. We define what debt and asset ARE as we own the market, the key governments and the petrodollar money line. In fact we now own your butts as you are under constant surveillance. Game over, have a nice day and NEVER EVER think you can be a whistle blower on US and our way of ife, 'cos its NON NEGOTIABLE."

I guess we 99%ers now know what the score is.

Mon, 06/10/2013 - 08:43 | 3641618 overmedicatedun...
overmedicatedundersexed's picture

Jon Corzine thinks greek islands are in a bull market at rock bottem prices, and nobody there even knows his name..rape of a suffering people is so easy.

Mon, 06/10/2013 - 12:34 | 3642499 Dareconomics
Dareconomics's picture

The IMF has admitted that its economic predictions for Greece have been poor and this has caused the Greek people unnecessary suffering.  You can see how bad the predictions have been in the chart above.  Each has missed to the downside including privatization receipts, but the Fund still will not admit that the poor predictions were not mistakes but rather political compromises to enable the Europeans to present their voters with a smaller cost.   

The can was kicked yet again, and once again it appears that we are running out of road.  Greece has missed its unemployment, economic growth and privatization forecasts by so much that another bailout is inevitable by the end of the year just like we wrote months ago:

Recovery Meme Spreads to Greece, Yes, Greece | DARECONOMICS.

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