Stocks, Euro Slide On Merkel Warning Greek Bailout Cash May Be Delayed

Tyler Durden's picture


It appears the market is in sell-first, question-later mode as a series of confusing headlines just hit from Bloomberg, citing a Merkel interview from SDZ, in which the German leader appears to have said that Greece May and/or May not get the next Troika bailout package...


As we noted here, the IMF has already warned on non-payment (and a 3-day ultimatum has been set) and with the election so close, it seems Frau Merkel is between a populist rock (keeping the leash tight and explaining that they may not get the full amount but may get a tranched amount based on smaller performance hurdles) and a hard place (of saying nein and losing Europe).


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Tue, 07/02/2013 - 12:27 | 3714289 fonzannoon
fonzannoon's picture

I'm listening to Dennis Gartman tell me that we have had a "watershed moment" in gold and it is going 300-400 dollars higher from here and the odds are much better than a coin toss.

Looks like sub $1,000 here we come.

Tue, 07/02/2013 - 12:29 | 3714296 YuropeanImbecille
YuropeanImbecille's picture

This is getting ridicilous, but sadly the sheeple buy into this crap and that is why we all have to suffer.

Tue, 07/02/2013 - 13:14 | 3714431 max2205
max2205's picture

Like a broken record...

Tue, 07/02/2013 - 13:15 | 3714439 max2205
max2205's picture

Greece has the GDP of Vermont... who cares

Tue, 07/02/2013 - 13:21 | 3714452 knukles
knukles's picture

Whadda buncha shit.
The story is not that Greece doesn't get paid, it's that the Banks don't get paid by Greece, FFS.

Tue, 07/02/2013 - 20:39 | 3716029 Unknown User
Unknown User's picture

So they will squeeze the peasants... again.

Tue, 07/02/2013 - 12:56 | 3714370 TheEdelman
TheEdelman's picture

How'd you know it was a double headed coin?

Tue, 07/02/2013 - 13:14 | 3714432 Panafrican Funk...
Panafrican Funktron Robot's picture

The FOFOA model points to somewhere in the $750-$850 area before we hit the force majure moment/COMEX/LBMA default.  Based on inventory drawdown pace, I'm looking at September-October 2013 event horizon, I'm willing to bet they're trying to reverse course in a hurry to slow down the redemptions.  I tend to think they kind of fucked up the pacing of this, which is pretty typical of a JPM-led effort to do anything at all.  That's the price you pay for having a CEO that spends more time on his hair than studying even high level synopses of what the fuck is going on at your company.    

Tue, 07/02/2013 - 14:53 | 3714781 Meremortal
Meremortal's picture

Yep, wrong way Gartmann to the rescue!

In other news:

Greece (or I should write, "Greek Banks" will get the money.

Tue, 07/02/2013 - 12:27 | 3714290 Iam Yue2
Iam Yue2's picture

Sell the fiction.

Tue, 07/02/2013 - 12:29 | 3714297 lizzy36
lizzy36's picture

So odd.

I really thought that Europe was over, and sup-prime was contained. After all the head of various CB's said so......and if you can't trust your local Central Banker who can you trust??

Tue, 07/02/2013 - 12:29 | 3714298 Dollar Bill Hiccup
Dollar Bill Hiccup's picture

No wonder emerging markets are so heavy. Greece, the new emerging market.

Tue, 07/02/2013 - 13:23 | 3714462 knukles
knukles's picture

Used to be such a wonderful place.
Except Athens' airport

Ah, the ouzo, Placa, retsina, loose hairy women, home of buggery

Tue, 07/02/2013 - 12:32 | 3714307 dcb
dcb's picture

because they have carried out anything they have said so far, lol

election time getting near.

Tue, 07/02/2013 - 12:32 | 3714309 PRO.223
PRO.223's picture

There's no way they're going to let Greece escape they're stranglehold. This is playing to the home crowds about how tough they are, even if they don't get their promises, (surprise - surprise) the discision to not give Greece the loan will somehow have to be postponed.

Tue, 07/02/2013 - 12:37 | 3714326 sunny
sunny's picture

I so totally agree.  Greece will never willingly leave the euro and Germany will cave in some manner.  For Greece (or anyone else) to leave will start the rush for the door and the last page of the last chapter.  Lots of noise will be made to quiet the sheeple, but the grand experiment must go on.


Tue, 07/02/2013 - 12:33 | 3714311 jpc578
jpc578's picture

I'm confused. I thought Greece was fixed. The Troika promised.

Tue, 07/02/2013 - 12:34 | 3714315 astoriajoe
astoriajoe's picture

Wait a second, what does Becky Quick have to say about this?

Tue, 07/02/2013 - 12:37 | 3714329 asteroids
asteroids's picture

Funny, I didn't think Angela was the official mouthpiece of the IMF. She must be pissed at the Greeks for some reason.

Tue, 07/02/2013 - 12:38 | 3714330 EclecticParrot
EclecticParrot's picture

You knew it'd be something, such a horseshit day to trade, though pure price action helped.  The 15-min candles on the major indices told the tale:  we'd flirt with the S&P 50DMA (with Russell sympathetic support), regardless of the weak tech indicators (unenthusiastic ADX and Wilder's DMI, 5-min MACD peeling back.).  This was obviously pure algo-driven drivel.  Of course, every surge was met by new shorts, thus all the upper wicks, and there was enough world news for an excuse to drive it back to the original surge point, though it was likely returning there anyway, to the scene of the farce.  Subtle lifts in USD.JPY and VIX gave a clue, but the old standby 5-min MACD/Stoch worked today just like in the 1950s.  Unlike the 50s, we've reached the point of 'invisible hand' volume-less buying, so it's possible we'll see a frustrating one-pivot range today, unless the rest of the world helps with a few more headlines.   Computers fully in charge today, with with their diodes to the ground, listening carefully.

Tue, 07/02/2013 - 13:04 | 3714394 asteroids
asteroids's picture

The late day dives must be terrible if you are a bull. But, I suspect there aren't that many bulls left in the market. They probably sold out weeks ago. I think there are a lot of people trying to outsmart the algos on these ludicrous swings.

Tue, 07/02/2013 - 12:38 | 3714332 Freddie
Freddie's picture

Germany/Merkel to Greece - the check is in the mail.


Tue, 07/02/2013 - 13:11 | 3714422 disabledvet
disabledvet's picture

more like a template

Tue, 07/02/2013 - 13:12 | 3714423 disabledvet
disabledvet's picture

at the speed of light i might add.

Tue, 07/02/2013 - 12:39 | 3714336 wattie
wattie's picture

Europe will never go away as long as the Euro exists.
I live in Cyprus and the deterioration here is visible........lives being sacrificed for a failed experiment, tragic.

They'll all be back for more unless someone grows some and leaves which is the only answer, default and bring this ridiculous scheme down.

I'm a big gold supporter, I've seen what the banks will do and got out. volatility doesn't bother me.
This is a long term crisis, it ain't getting better and as far as I'm concerned it's not what return you get on your's will your money be returned.

I'm looking at 3-5 years and cannot see how this global Ponzi can keep going.i trust neither bankers nor politicians.

Cheers Wattie

Tue, 07/02/2013 - 13:13 | 3714427 disabledvet
disabledvet's picture

"Europe"'s been dead since 2008 buddy. The guys name is Trichet. Look him up.

Tue, 07/02/2013 - 12:40 | 3714338 timbo_em
timbo_em's picture

So how many non-official sector creditors are left and who is going to get hit if/when Greece defaults? This is circle jerking 101!

Tue, 07/02/2013 - 13:14 | 3714429 disabledvet
disabledvet's picture


Tue, 07/02/2013 - 13:59 | 3714566 Freeman Tilden
Freeman Tilden's picture

United States Department of Debt.

There fiexd it for you.

Tue, 07/02/2013 - 12:40 | 3714339 Headbanger
Headbanger's picture

Yep, that's the way the baklava crumbles..

Tue, 07/02/2013 - 12:46 | 3714352 RunningMan
RunningMan's picture

This is a tale told across four stages:
1. US: FRB Grand QE/$ Printing Experiment
2. Europe: Euro Experiment
3. China: Compress an Industrial/Middle Class and Financial Revolution into 10 years
4. Middle East/Emerging Markets: Exported inflation and volatility

Or is it a circus? The Circus McGurkus... the world's greatest show.

Tue, 07/02/2013 - 12:58 | 3714374 TheEdelman
TheEdelman's picture

I like clowns

Tue, 07/02/2013 - 12:51 | 3714361 macambaman
macambaman's picture

..and Tzatziki disintegrates.

Tue, 07/02/2013 - 13:01 | 3714376 buzzsaw99
buzzsaw99's picture

rotund merkel beating up on skinny ass greece in the msm octagon grudge match final right before the election? the (extra fat sized) deutsche bank sponsored championship belt is at stake. am i too cynical?

Tue, 07/02/2013 - 13:04 | 3714395 fonzannoon
fonzannoon's picture


Tue, 07/02/2013 - 13:04 | 3714396 wattie
wattie's picture

One other thing to add to my post below.....

The bail in of Cyprus was in part due to the "money laundering" that Cyprus apparently conducted and turned a blind eye to....

Really??? Why has no Cypriot banker or Politician facing charges for such!!!

I'm sick of rigged Casino markets, corruption, and those that act responsibly. Ie savers paying the price for those that do wrong.

I sincerely hope that the tide turns one day and those that lie, cheat, betray and manipulate face their just deserts.

Cheers Wattie

Tue, 07/02/2013 - 13:08 | 3714413 fonzannoon
fonzannoon's picture

wattie did Cyprus end up parting with their gold holdings?

All the best to you.

Tue, 07/02/2013 - 13:16 | 3714443 wattie
wattie's picture

Not that I'm aware of. It's the one thing that they could base their old currency on so it's the last chance sell would be catastrophic!

I should add, I'm not Cypriot but have lived here for a few years.

I'm astonished at how they've accepted the theft......but EVERYONE knows things will get's tragic cos the entire infrastructure of it's economy has been decimated and they're still stuck in this flawed currency with no glimmer of light.

The economic projections are complete fantasy, the situation here is'll blow up again, guaranteed!

Cheers Wattie

Tue, 07/02/2013 - 13:49 | 3714549 CuttingEdge
CuttingEdge's picture

Cyprus wasn't about money laundering and dodgy Russians.

Cyprus should have gone down the pan the same time as Greek secondary bond holders took that 75% hit. Needless to say Cyprus banks had a shitload of Greek paper at the time (7% interest anyone out there? Deutchebank maybe?).

Cyprus couldn't be allowed to fail until the German banks had their money took about a year. Then the plug was pulled with the diversionary excuse of the pesky Russian oligarchs stashing cash there.

Well documented by Charles Hugh Smith


H/T Ed Snowden. The first true American hero in a generation. If you get lucky and Spain beckons look me up for a few weeks in a remote drone-free zone. Wife says you would be more than welcome. Nice pool and if you time it right (mid October) I have a nice little crop under cultivation (winter fuel?). As Spain bends over for the US like anyone else, its probably unlikely. but on a positive note, if you are obliged to stay in Russia at least the girls are hotski.

And fuck you NSA


Tue, 07/02/2013 - 14:06 | 3714587 wattie
wattie's picture

Of course it wasn't, that was an excuse but what it revealed was the apathy of the GENERAL Public.
Anyone that was informed or who reads here could see what was coming next re the banks in Cyprus, those that trust get burnt!!!!

Tue, 07/02/2013 - 14:58 | 3714802 Meremortal
Meremortal's picture

"I sincerely hope that the tide turns one day and those that lie, cheat, betray and manipulate face their just deserts."


That will not put any money in your pocket either.


Tue, 07/02/2013 - 16:03 | 3715060 wattie
wattie's picture

No it won't but it will show that the moral standings of the world will have changed and moving forward that should be a better place for those who do the right thing.

Tue, 07/02/2013 - 13:08 | 3714409 Son of Loki
Son of Loki's picture

A stronger dollar....very [NOT] bullish for USA exports.

Tue, 07/02/2013 - 13:08 | 3714412 TrustWho
TrustWho's picture

S&P 500 feels like it is afraid to drop. China, Egypt, Greece, Portugal....risks raising head everywhere, but algosnholding above 1618. Will it crack today before close and take our breath away?

Tue, 07/02/2013 - 13:57 | 3714563 TrustWho
TrustWho's picture

They stopped S&P above 1613. Fear fills the air before Independence Day. 

Tue, 07/02/2013 - 16:28 | 3714726 TrustWho
TrustWho's picture

UPDATE: At 2:46, the algos held the 1607 line for the third time and ramped into the close. Considering the ROW events, the algos had a good day as the talking heads can claim today was a down day and rip up tomorrow. Blood in the streets of Egypt must be worth 20 S&P points.


They stopped S&P twice above 1607 and maybe taking a stand. But fear fills the air before Independence Day as Egyptian Army announces pre-Coup for tomorrow. Who ever pre announces a coup?

Tue, 07/02/2013 - 13:10 | 3714415 DeliciousSteak
DeliciousSteak's picture

God I hope Greece just packs their things, too bad it won't happen. I get that no one wants to pay the political price for destroying the Euro, but hey if all goes well they might end up being hailed as the geniuses who saved Europe. Everyone is deep in their foxholes just hoping someone has the balls to get up, retreat and show the way before everyone is overwhelmed.

Tue, 07/02/2013 - 13:25 | 3714477 CuttingEdge
CuttingEdge's picture

But...but...but...Francois Hollande said a week or more back that the € had been saved!!!


Tue, 07/02/2013 - 13:30 | 3714501 wattie
wattie's picture

Totally wrong, C****s are useful,

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