Stocks Plunge As IMF Tells Greece To Plug Holes Or It Pulls The Plug

Tyler Durden's picture


As we warned earlier in the week, Greece is notably missing its Troika goals and the issue just became a lot more critical. As The FT reports, the IMF is preparing to suspend aid payments to Greece over what it claims is a EUR 3-4 billion shortfall that has opened up. Between healthcare budget shortfalls, central banks refusing to roll-over Greek bonds, and amid signs that even the scaled-back privatization plans that Athens had agreed to being behind schedule, the IMF - following its own admissions of mistakes in the Greek bailout, has warned EU officials the shortfall will require it to stop aid payments by the end of July. The equity market is already reacting (as is EURJPY - EUR weakness against the big carry pair) to this re-awakening of EU event risk (and the awkward timing with Merkel's election so close) - with the Fed's comfort blanket somewhat removed.



Via The FT,

The International Monetary Fund is preparing to suspend aid payments to Greece by the end of next month unless eurozone leaders plug a €3bn-€4bn shortfall that has opened up in Greece’s €172bn rescue programme, according to officials involved in management of the bailout.


The gap emerged after eurozone central banks refused to roll over Greek bonds they hold, and comes amid signs that even the scaled-back privatisation plan Athens agreed to last year is falling behind schedule.




The shortfall will force eurozone finance ministers to discuss “alternate sources” of funding




But the timing is particularly awkward as Germany is holding parliamentary elections on September 22. In the run-up to polling day Chancellor Angela Merkel will be loath to submit any further aid request to the Bundestag where it would likely be highly controversial.




the IMF has warned EU officials the gap will require it to stop aid payments at the end of July, said a person involved in the discussions.


Under its rules, governments must have at least 12 months of financing in place to receive IMF disbursements under a bailout programme. This latest shortfall of €3bn-€4bn means that Greece’s financing needs are only covered up to the end of July 2014.

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Thu, 06/20/2013 - 14:31 | 3675999 Midasking
Midasking's picture

tapering is not happening or the entire world will be a smoking hole in the ground. QE will be expanded you can count on that.

Thu, 06/20/2013 - 14:36 | 3676030 Freedom In Your...
Freedom In Your Lifetime's picture

We need a whole new economic system, until something that isn't centrally planned is accepted by the majority of the world things will not get better and we very well may become that giant smoking hole in the ground you mention. Economies and currencies need to become more localized rather than more centralized.

Thu, 06/20/2013 - 14:38 | 3676041 SpiceMustFlow
SpiceMustFlow's picture

Greece adopted the "Detroit Economic Model"

Thu, 06/20/2013 - 14:44 | 3676065 true brain
true brain's picture

yes, 1600 on S&P is breached. Can't wait till 3:30 ramp.


These fools at the Fed world wide need to get real about real wealth vs paper fantasy. ONly real wealth creation can lower unemployment, provide growth. Real wealth is very hard to get, depends on energy, innovation, etc.  Get real Fed fools.

Thu, 06/20/2013 - 14:45 | 3676082 LetThemEatRand
LetThemEatRand's picture

I wonder if the guys who push the buy button at 3:30 with our future tax dollars play rock, paper scissors to decide which of them gets to pick the exact closing price each day.  

Thu, 06/20/2013 - 15:03 | 3676110 BLOTTO
BLOTTO's picture

Needing a new financial system is still only part (b)...


Part (a) is needed first...which is...good people to create that system.


Or it will be just the same, fuckin, horseshit all over again...


Nothing New Under the Sun,

History is Repeating itself.


ya digg?

Thu, 06/20/2013 - 15:05 | 3676152 Herd Redirectio...
Herd Redirection Committee's picture

I think if we are able to decentralize, then the need for superhumans decreases.

Its just the current system, with so much power in so few hands, that cannot possibly be reformed.  Its like sending a virgin to reform the whorehouse.  Whats the most likely outcome?

Thu, 06/20/2013 - 15:33 | 3676336 12ToothAssassin
12ToothAssassin's picture

Would really be some great icing if margin calls started a last half hour cascade

Thu, 06/20/2013 - 16:07 | 3676517 Herd Redirectio...
Herd Redirection Committee's picture

BTW, just to clarify, when I say the current system "cannot possibly be reformed", I just mean that it needs (substantial/complete) overhaul, not 'good people' in the place of the current banksters.

Thu, 06/20/2013 - 15:13 | 3676178 Kirk2NCC1701
Kirk2NCC1701's picture

PMs are getting hammered beyond belief. Have to admit that outside the Fed/JPM/GS triangle, no one - not even ZH - saw this coming last Fall.

Q:  PM bro, how low will it go?

A:  I'm going out to BTFD.  Later I'm going boating.

Thu, 06/20/2013 - 15:34 | 3676344 RockyRacoon
RockyRacoon's picture

Just picked up an ounce today on this pull-back.  Now I need to go out and fix that hole in the boat... or not.

Thu, 06/20/2013 - 14:50 | 3676106 Prison Justice
Prison Justice's picture

A whole 6 point drop?  Excuse me while I take a trip to Schnoozeville.

Thu, 06/20/2013 - 14:44 | 3676077 Cult_of_Reason
Cult_of_Reason's picture

Just yesterday Cramer said that Europe was fixed and turning around.

Well, Bear Sterns was fine too.

Thu, 06/20/2013 - 15:08 | 3676166 SmallerGovNow2
SmallerGovNow2's picture

Cramer said, that explains it....

Thu, 06/20/2013 - 15:36 | 3676359 RockyRacoon
RockyRacoon's picture

I wish I had 0.0000000000001 % of the money he has lost for his viewers.  I'd take that fee to have told them all to change the channel... Honey Doo Doo is better than Cramer.

Thu, 06/20/2013 - 14:44 | 3676078 bank guy in Brussels
bank guy in Brussels's picture

Pull it

Pull it, IMF

Pull it like Larry Silverstein and Building 7

Pull it

Thu, 06/20/2013 - 15:38 | 3676370 RockyRacoon
RockyRacoon's picture

Nah, they ain't gonna pull anything.

"...governments must have at least 12 months of financing in place to receive IMF disbursements under a bailout programme."

This will be reduced to 6 months, then 3 months, then 3 days, then 15 minutes.

Thu, 06/20/2013 - 15:44 | 3676414 SAT 800
SAT 800's picture

LOL. probably.

Thu, 06/20/2013 - 16:25 | 3676643 NotApplicable
NotApplicable's picture

More like, "Go plug yourself!"

Thu, 06/20/2013 - 14:49 | 3676104 Crash Overide
Crash Overide's picture

Gold, Silver, barter, practical skills, common sense... I want that to be the new system.

Thu, 06/20/2013 - 15:41 | 3676398 Freedom In Your...
Freedom In Your Lifetime's picture

I am right there with you CO. More localized, less cetral planning. Less aggression and coercions, more voluntary interaction.

Thu, 06/20/2013 - 14:52 | 3676113 Stoploss
Stoploss's picture

Storm in a tea cup???

Thu, 06/20/2013 - 14:38 | 3676037 howenlink
howenlink's picture

If it walks like a smoking hole, and smells like a smoking hole, and sucks like a smoking hole...

Thu, 06/20/2013 - 14:47 | 3676089 ParkAveFlasher
ParkAveFlasher's picture

...don't step in it?

By "alternative means of payment", do they mean "internal organs"? 

Thu, 06/20/2013 - 14:39 | 3676044 smlbizman
smlbizman's picture

the imf to eu......11 seconds

Thu, 06/20/2013 - 14:59 | 3676138 BlueStreet
BlueStreet's picture

Pull the fucking plug already, the patient died long ago.  

Thu, 06/20/2013 - 15:10 | 3676171 williambanzai7
williambanzai7's picture

If this were August, we would be saying wait till September hits. But this is June!!!




Thu, 06/20/2013 - 20:53 | 3677449 Buck Johnson
Buck Johnson's picture

Oh I know, I think they won't stop.  But the problem is that it will make it impossible for them to hide inflation/hyperinflation in the near future.

Thu, 06/20/2013 - 14:33 | 3676010 thismarketisrigged
thismarketisrigged's picture

i am so happy the s&p finally broke away from the 1600 level. lots of red below, and i love watching my screens go all red.


also noticing lots of mini flash crashes on my screen.


i hope gold and silver bounce back

Thu, 06/20/2013 - 14:48 | 3676097 Bay of Pigs
Thu, 06/20/2013 - 15:51 | 3676444 El Viejo
El Viejo's picture

Soylent Red is Retirees!!!

Thu, 06/20/2013 - 15:18 | 3676218 Tsunami Wave
Tsunami Wave's picture

I think the precious metals are being FORCED to go lower. Even in the midst of all asset-classes crashing, they're trying to make gold look like the worst thing to own by far. All the articles in seeing on every site says 'all stocks/commodities/blah blah down with Gold leading the way'. Maybe they can pull off everything stabilizing while gold/silver/platinum hopefully staying down. Either way, those hopeless morons are still fucked, and I will keep buying that shit dips or not.

Thu, 06/20/2013 - 14:33 | 3676011 JJ McApe
JJ McApe's picture

don't worry greece is ready to implode. after the vultures sold the whole country out and people are doing drugs on the streets its time to finish them off...


Thu, 06/20/2013 - 14:38 | 3676038 THX 1178
THX 1178's picture

So now?

Thu, 06/20/2013 - 14:35 | 3676020 falak pema
falak pema's picture


Thu, 06/20/2013 - 14:36 | 3676022 insanelysane
insanelysane's picture

We're off the lows so that means there is a rush to buy the dip!  </sarc>

Thu, 06/20/2013 - 19:19 | 3677227 mjcOH1
mjcOH1's picture


Thu, 06/20/2013 - 14:36 | 3676023 astoriajoe
astoriajoe's picture

Wait a second. I was told this was all taken care of.

Thu, 06/20/2013 - 14:36 | 3676024 Bay of Pigs
Bay of Pigs's picture

Greece? LOL...thats pretty funny after all these years of QE can kicking.

Thu, 06/20/2013 - 14:42 | 3676063 Wile-E-Coyote
Wile-E-Coyote's picture

Greece is like a dose of the clap that Penicillin doesn't quite clear up. You think you are over it and then your dick starts dripping again.

Thu, 06/20/2013 - 15:04 | 3676149 DutchR
DutchR's picture

How do you know?



Thu, 06/20/2013 - 15:27 | 3676280 Conax
Conax's picture

When he finally caught the Roadrunner, Wile E. got more than he bargained for.

Thu, 06/20/2013 - 15:16 | 3676206 astoriajoe
astoriajoe's picture

and for the sake of completeness, Mr. Panos.

Thu, 06/20/2013 - 16:09 | 3676526 Herd Redirectio...
Herd Redirection Committee's picture

This guy is great.

Thu, 06/20/2013 - 14:36 | 3676027 trebuchet
trebuchet's picture

China banking crisis, Brazil burning, Fred tapering, IMF pulling plug  on Greece and therefore Euro, Abe resolve weakening.........


Black Friday, anyone?

Thu, 06/20/2013 - 14:40 | 3676040 Ness.
Ness.'s picture

Black Friday - Steely Dan

When Black Friday comes
I'll stand down by the door
And catch the grey men (banksters) when they
Dive from the fourteenth floor
When Black Friday comes
I'll collect everything I'm owed
And before my friends find out
I'll be on the road

Thu, 06/20/2013 - 14:36 | 3676032 Yen Cross
Yen Cross's picture

    As the European bond market blows out. Pay special attention to GGBs.


European bonds

  • Italy 4.54% +28 bp
  • Spain 4.86% +33 bp
  • France 2.26% +15 bp
  • Portugal 6.41% +34 bp
  • Greece 10.67% +50 bp
  • Germany 1.66% +10 bp      
Thu, 06/20/2013 - 14:41 | 3676053 reload
reload's picture

Purchases of which were financed in Yen.

Great call on the Cable last week by the way.

Thu, 06/20/2013 - 14:46 | 3676086 kchrisc
kchrisc's picture

German rates went up by 6.41% while Greece went up by "only" 4.92%. Hmmmm!

Thu, 06/20/2013 - 14:38 | 3676035 dasein211
dasein211's picture

It's coming.

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