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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bugs_'s picture

Don't you wish you could have just one?

cifo's picture

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

This just in's picture

Who would play the role of the whistler?

ShrNfr's picture

Is that what Bill Clinton calls it??

espirit's picture

Hockey Schict, or scythe?

Pure Evil's picture

Its all biliousness to me.

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.

Pure Evil's picture

Is it time to move to Butt Fuck Egypt yet?

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?!

cifo's picture

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

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...

Midasking's picture

who didn't see that one coming.. I am more concerned about who is going to bailout Uncle Scam.. http://tinyurl.com/n8hmfya

lolmao500's picture

Taxpayers will, of course.

Chaffinch's picture

Will that make it 3 bailouts or 4?

I'm losing count here...

EscapeKey's picture

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

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!

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.

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.

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.  

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...

Devotional's picture

The EU is doomed.

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

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.

otto skorzeny's picture

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

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?

otto skorzeny's picture

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

BigJim's picture

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

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.

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.

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?

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.

BigJim's picture

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

Terp's picture

JUST. WALK. THE. FUCK. AWAY. ALREADY.

 

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.

darteaus's picture

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

Zero Point's picture

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

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.

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.

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.

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

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.

BigJim's picture

Tush, such suspicious minds you have!

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

Nobody For President's picture

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

Terp's picture

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

/sarc

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 Greece...is going to avoid the same thing.

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.

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. 

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.

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?

Cognitive Dissonance's picture

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