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Greek Bonds Plunge As Ruling Coalition Partner Pulls Out, Withdraws Ministers
As reported yesterday, Greece has stormed right back to the top of the crisis charts, not only due to the previously reported news that the IMF may be withholding further payments until Greece finally gets its house in order (three years later one can forget this will happen), but because as a result of the fallout surrounding the national broadcaster ERT, the coalition government is now in tatters. Moments ago any hopes that some political stability may be preserved were crushed following news that the Democratic Left official Vassilis Economou, who spoke libe on Greek Skai TV which is still in operation, said the party decided to withdraw its ministers from the coalition govt of Prime Minister Antonis Samaras. And there goes the fake sense of calm that has permeated the south of Europe ever since last summer's nail-biting Greek elections, which concluded in the best possible way for Germany. This time around, however, the last thing Merkel needs two months ahead of her reelection is a resurgence in the peripheral crisis, timed perfectly to coincide with the end of the carry trade, which will mean only the ECB is left to pick up the pieces.
In the meantime, all the momentum monkeys that were busy buying up Greek bonds recently on idiotic hopes of par recovery by the broke country's debt instruments, are getting carted out.
Once the 2013 support of 50 cents is broken, watch out below as reality finally reasserts itself.
More from Reuters:
The Democratic Left party may pull out of Greece's ruling coalition on Friday after talks to resume state television broadcasts collapsed, plunging the nation into fresh turmoil.
Lawmakers from the small leftist party, angered by the abrupt shutdown of broadcaster ERT last week, will meet at 0730 GMT to decide whether to continue backing Prime Minister Antonis Samaras, who warned he was ready to press ahead without them.
"I want us to continue together as we started but I will move on either way," Samaras said in a televised statement, promising to implement public sector reforms demanded by Greece's international lenders.
"Our aim is to conclude our effort to save the country, always with a four-year term in our sights. We hope for the Democratic Left's support."
Splits emerged early on Friday among the party's 14 lawmakers, with one deputy saying it should stay in government and another that it should quit.
Samaras's conservative New Democracy party and its Socialist PASOK ally jointly have 153 deputies, a majority of three in the country's 300-member parliament. That means they could manage without the Democratic Left, but a departure of the party would be a major blow.
Officials from all three parties ruled out snap elections, which would derail Greece's bailout program.
Time to unrule them out.
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Officials from all three parties ruled out snap elections, which would derail Greece's bailout program.
Riots will fix that.
Three things you cant have in a title if you want an honest discussion:
Greek
Partner
Pulls Out.
LOL Tyler!
pods
Its a Greek tradegy...
So what's been happening in Greece then? Did I miss something?
A Greek tragedy you say, yes the Greeks are good at them.
Thinga are amazing, why pull out?
yeah, I guess that's one word for it.
The trouble with politics is that, sooner or later you run out of road to kick the can down.
(with apologies to M.Thatcher)
This might even be an orchestrated Coup d'État against Merkel, she's somewhat of an Iron-lady for Germany, even though nominally pro-Euro, she still holds the ECB somewhat back, with a Leftist coalition in power, Germany would be an obedient lap-dog of the Euro-paymasters
Since they can't and won't dare a direct attack on her like they did to Berlusconi, the only option to get her out is to create enough storms in tea-cups for it to finally spill over on her. Merkels position in the next elections is very fragile any major disruptions/scandals and she's out.
It's going to be a very LOOONNNG Weekend.
+1. Yes it is!!!!
My wife loves long weekends.
Your wife loves this long dick
Who brought the cool kid?
pods
The incubent two parties left, ND and PASOK, have a majority in the House of 153 over 300.
Some independent MPs have spoken in favor of the government and commented that "if the survival of the government passes through our hands, then there will be no early elections".
Thus, it seems that the goevernment survives, for the time being...
It would be a waste of tremendous sacrifices of the Greek people, the gov to "fall" because some politicians do not feel "right" (because of political beliefs) with 2,500 lays offs of gov people.
I would remind you that Greece has 1.5m unemployed and none is from the gov sector...
The best thing to happen to Greece in 3 years would be for the corrupt government to fall. The 2 parties currently in charge have ruled Greece for decades. They are responsible for the mess it is in. Unfortunately, due to low information voters (not their fault-- the older folks who get their news from tv don't all realize how biased it is) voted for these parties to stay in power. These parties are not only corrupt, they are likely also susceptible to blackmail due to their previous misdeeds. I think that is part of the power the EU has over them.
Here come the Koreans! Hubba hubbba hubba! (Always loved that line from the movie Payback with Mel Gibson.) and yes "it was the Koreans who renamed the IMF the Eye Am you know what. Welllll...look at who's been earning their keep since 1998! (Now would I identify with that? Hmmmmmmmmm.)
Dear Mr Greezee,
I am zin St. Peterzburg today refresshing my cloze frendshipz viz our Russian comradez. In Zeptember I haz to be re-erected by ze German people. Yahr, zis iz gute. I vil vin fur sure. My deal viz ze ECB vil make sure (giggle giggle).
Pleaze zerefore delay your economic and sozial collapze undtil at ze leazt end Zeptember or I vil not give to you any more German taxpayerz money. It vil be nein nein nein all ze way till zen.
Yourz very trulyz
Geli Merkel.
The Greeks are past the stage of circling the drain and the only thing that will focus them is to be cut off from that poisonous European breast and to be forced to confront their problems head on and with their own efforts.
But I don´t blame them...as long as they were getting free money...why not take it.....it has filled many accounts in the Swiss banking system....but now is the time to break away and clean it up....
The real tragedy is that (actually there are several).
1) Greece lied through it's teeth to meet criteria to join the Euro - and Germany et al were fully aware of that at the time.
2) Pasok supercharged corruption to such a level that the parasite literally killed the host.
3) Greece will leave the Euro at some point and all the destruction they have incurred will have been for nothing. So when the real shock of reintroducing the Drachma hits their economy it's already toast.
Tyler
You have got to do some spell checking on your inputs
I would just love to see the Greek people hang their Goldman Saks overlord from a tree.
Now that would send a message.
Huge buying opportunity for Bill 'Bond Bubble' Gross!