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.

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