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Lack Of Cash Flows Ends Greek Export "Miracle"

Tyler Durden's picture


While cash flows may be an anachronism in a time when the return of the dot com bubble means only future corporate prospects of growth matter, and the lower the actual profits or earnings the greater the upside stock potential due to ridiculous future PE multiples (flashing back to the year 2000), for some the lifeblood of success is still dependent on cash flow. Or the lack thereof. Such as Greece, where a brief episode known as the "Grecovery" driven by a recent export surge was put on indefinite hiatus where as Kathimerini says "exports run out of steam due to cash flow problems." It explains: "The rise of Greek exports sadly proved short-lived, as the momentum observed in the last couple of years has all but vanished. Exporters estimate that 2013 will end with a rise of 3 to 4 percent. But that figure includes fuel products, and when they are taken out of the equation it turns into an annual drop of 2 to 3 percent."

The loss of momentum is due to the cash flow problems Greek enterprises are facing, which are preventing them from reaching out to new customers. External factors also play a role: According to World Trade Organization estimates, the growth rate of global commerce will drop to 2.5 percent this year from an original forecast for 3.3 percent.


Even if we had large orders we would not have been able to fulfill them,” an exporter says. Acquiring raw materials from abroad remains difficult while the high energy costs are a major obstacle. The latest data from the monthly PMI index issued by Markit show that the inflow of new orders from abroad declined in November for a third consecutive month.

It's always something. And better to have bled cash and exported than never to have exported at all, or whatever the saying is in a day when liquidity injections and made up trade data between China and Hong Kong mask the global trade flow contraction shown best by the following IMF chart "forecasting" future trade growth. Or the lack thereof.


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Mon, 12/16/2013 - 09:04 | Link to Comment AvoidingTaxation
AvoidingTaxation's picture

The MSM are so full of shit is unbelievable. The gov speechs worldwide are reminishent of old time propaganda. The West is FUBAR.

What to do? No idea, but a cash flow generating business would be great. PM and Ammo are nice stores of value but we need to MAke money, not only preserve what little we have.

And there is no solution yet. And think are getting worse by the day. Drones and armed robots are a reality folks. Fukushima is a warning. Skynet is our market maker.

Waiting for the catalyst. And then, we shall see.

Mon, 12/16/2013 - 09:09 | Link to Comment Smegley Wanxalot
Smegley Wanxalot's picture

Cash not flowing? Then open the taps to the printer wider!

Mon, 12/16/2013 - 09:25 | Link to Comment SafelyGraze
SafelyGraze's picture

there would be more exports if the greek people would all work for less money

same goes for every country

evil-n d

ps have you considered being an intern 

Mon, 12/16/2013 - 09:29 | Link to Comment negative rates
negative rates's picture

Uh O, paper kink in the printer shut down the money supply and we don't why. Can you say mechanic?

Mon, 12/16/2013 - 09:36 | Link to Comment Sudden Debt
Sudden Debt's picture

I think it's a paper jam... that shit happens a lot to me also...

Mon, 12/16/2013 - 09:16 | Link to Comment greatbeard
greatbeard's picture

>> a cash flow generating business would be great.

Craigslist is your friend but you need a rather low cash flow requirement.  There is power in poverty.

Mon, 12/16/2013 - 09:35 | Link to Comment Sudden Debt
Sudden Debt's picture





Mon, 12/16/2013 - 09:51 | Link to Comment all-priced-in
all-priced-in's picture

With a chart like this the IMF could win the Stanley Cup.

Mon, 12/16/2013 - 09:57 | Link to Comment Peter Pan
Peter Pan's picture

It is the unfortunate truth that the people of Greece are barely producing enough to even feed themselves and their tourists.

Europe is talking through its sphincter when it says that Greece is on the way to recovery.

Germany is simply delaying the inevitable debt default until such times as she can asset strip Greece of current and future assets as well as set up the deluded banking union which supposedly will fortify Europe's financial system.

What Germany keeps forgetting is that history has not been kind to her and will surely repeat itself.

Mon, 12/16/2013 - 13:15 | Link to Comment Ghordius
Ghordius's picture

let me guess: if Greece would revert to the Drachma, everything would be just fine? If yes, how do you convince the Greeks about this cunning devaluation plan?

Mon, 12/16/2013 - 10:00 | Link to Comment spanish inquisition
spanish inquisition's picture

Soon to be a story near you "Markets down 3.5% in 35 minutes as Fed printer "Ctrl" button on keyboard broken. "It was pretty scary" said an unknown Fed employee "it took us 10 minutes to figure it out and call the tech guys, then Jimmy the janitoir was walking by and said to swap out the keyboards......We really owe that guy a Bollinger".

Mon, 12/16/2013 - 11:19 | Link to Comment no more banksters
no more banksters's picture

Greek crisis and disorientation operations latest update: the return of “success story” and followings

Mon, 12/16/2013 - 13:05 | Link to Comment Oldrepublic
Oldrepublic's picture

This was written by a Greek professor of Economics

Greece is being used as if it were an experimental laboratory in which the welfare state is dismantled and the experimenters keenly observe the effects of its dismantling.

Mon, 12/16/2013 - 19:37 | Link to Comment no more banksters
no more banksters's picture

The tactics of downgrading and degeneration

The Greek government, as an authentic representative of the neoliberal dictatorship in Greece, deliberately destruct public benefits and services

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