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Greece To ECB: "Get To Work, Mr. Draghi"
With talk that Greek banks have hit their emergency lending limit with the ECB (which has prompted a teleconference this morning among ECB polcy-makers), it seems the newly-found position of negotiating strength for Greece (perhaps encouraged by China or Russia behind the scenes) has prompted more demands:
- GREECE'S SYRIZA CHIEF ECONOMIST JOHN MILIOS PROPOSES OVERALL EURO ZONE DEBT OVERHANG REDUCTION BY ECB
- ECB COULD BUY ALL EURO ZONE DEBT MATURING IN 2016-2020 AND ALL INTEREST PAYMENTS-SYRIZA'S MILIOS
- ECB WOULD FOOT THE BILL NOW, BUT BY 2040 IT WOULD BE ABLE TO ERASE ALL LOSSES THROUGH PROFIT RETENTION-MILIOS
Roughly translated - "Get back to work, Mr.Draghi" and monetize all of Europe's debt. With negative net issuance (i.e. central banks already monetizing over 100% of 2015's expected issuance) already here, this demand merely pushes the 'independent' monetary policymakers to enable more fiscal profligacy.
Greek bank liquidity running dry...
The ECB moved Greek banks onto ELA last week after it ended a waiver on the quality of the nation’s debt it accepts as collateral amid doubts that the newly elected government will conclude its aid program.
Greek banks have almost exhausted the 59.5 billion euros granted by the ECB, Skai Television reported yesterday, without saying how it got the information.
And so ECB policymakers are discussing what to do next... (as Reuters reports)
European Central Bank policymakers held a telephone conference on Thursday concerning the provision of Emergency Liquidity Assistance (ELA) to banks in Greece, two people familiar with the matter told Reuters.
The ECB has authorised Greece's national central bank to provide the country's lenders with some 60 billion euros ($68.08 billion) in ELA, people familiar with the matter have said, but this requires regular approval from the ECB's Governing Council.
The ECB declined to comment, when asked about the telephone conference.
ELA provision is critical to the fate of Greece's banks, and in turn the country's fate, after the ECB cancelled its acceptance of Greek bonds in return for funding last week.
* * *
The question is - does The 'independent' ECB play hard ball and squeeze Greek banks by withholding more funding to aid Eurogropup negotiations into Monday? For now, Greek bank bonds and stocks are notably higher (for what reason is anyone's guess)...
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damn that was easy..why didn't the FED think of that..oh wait
Talk about the Inmate running the assylum. Now that is funny. Money for nothing and Chicks for free.
"They will get all their money back by 2040.." Yeah right, like all the governments in europe will magically stop increasing their debt.
They will get their money back after Germany gets its gold back. They have a higher deli ticket number.
They're thinking small with the 2040 date, time for those 100 year bond maturities
Why anyone in the World hasn't traded their Euros for Gold by now is beyond belief.
because most people have been in the matrix all their lives and when they take the red pill and see what its really like, all they want is to get back into the matrix
Until the world's supply of ink is gone, there is no "lending limit". There is only deception.
I'd gladly pay you in 2040 for a gyro today!
Well played sir !
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The headline the Tylers wrote here is so mis-leading. The Greeks have no leverage with Draghi now printing.
That train left the station when the Swiss let the Franc float.
The creation of new Euros by the ECB now paves the way for a cleaner goodbye to the Greeks...cleaner being decreased contagion across the banking system.
The ending will probably look like the ECB quietly creating Euros (to keep the German public at bay) and using those to buy outstanding Greek debt through the banking system.
To save face, the ECB will buy the debt at a fraction of the Euro, say 50 cents on the Euro. This technique is called "socializing the problem."
Europe knows how to socialize, so the political spin doctoring should not be as difficult as it would be in a capitalistic and entrepreneurial society.
This will weaken the Euro a bit, maintaining German industrial competitiveness across global markets.
Well played sir !
________________________________
The headline the Tylers wrote here is so mis-leading. The Greeks have no leverage with Draghi now printing.
That train left the station when the Swiss let the Franc float.
The creation of new Euros by the ECB now paves the way for a cleaner goodbye to the Greeks...cleaner being decreased contagion across the banking system.
The ending will probably look like the ECB quietly creating Euros (to keep the German public at bay) and using those to buy outstanding Greek debt through the banking system.
To save face, the ECB will buy the debt at a fraction of the Euro, say 50 cents on the Euro. This technique is called "socializing the problem."
Europe knows how to socialize, so the political spin doctoring should not be as difficult as it would be in a capitalistic and entrepreneurial society.
This will weaken the Euro a bit, maintaining German industrial competitiveness across global markets.
rofl. Greeks just owned ECB from another side.
-You have QE and you tell us it is working so you can do QE+ for us, why not?)
WTF?? Who is this Milios guy? The other top two Greeks parading around Europe know that reducing or eliminating debt is their only hope -- and while the thought of the ECB buying debt would take it off the Greek books (I suppose?) - there would be no overall debt reduction and would actually encourage all of the EU to issue even MOAR!
Milo Minderbender "We're gonna come out of this war rich!"
+1 for the Catch 22 reference, though it's Minderbinder.
Ain't gonna happen. Grexit and return to national currency now. Meet Mr. Draghi:
Corporate Europe Observatory has highlighted several cases where the ECB has shown to be very close to big banks. They include the membership of ECB President Mario Draghi of the Group of Thirty – a club for central bankers and some of the biggest banks in the world – that has served as a lobbying vehicle for specific reforms of financial regulation that favoured big banks, including in the years preceding the financial crisis.
No wonder, Yanis clearly and repeatedly stated on several occasions that the EU is solely a US project.
And now get to work, Mr. Draghi! What-the-fuck-ever it takes!
I guess the lesson in all of this is don't pay your bills, contract law is dead. I am a sucker for being financially responsible. How screwed up is that? I know, the banks got bailed out, but still, individual responsibility has disappeared.
the rule of law has been slowly pulled out from under your feet - don't look down
I am reminded once again of the infamous Santelli Tea Party rant. He was OK with trillions to bail out banks and indirectly every wealthy person who owned equities. It was only when a few crumbs we're going to be directed at the serfs that he went ape shit about socialism.
When a rat is drowning..it is funny with what they come up with......these guys have a great imagination.....
summarizing: "FUCK YOU EU - GO FUCK YOURSELF"
Checkmate motherbankers!
You know its funny...Greece pretty much only has Tourism as its big business.....so to take their theory...you should be able to go to Greece and vacation for free....I am in
Don't forget their millennia-old shipping industry.
if anyone tells you bond rates are going up they are lying. the world is going to zirp all the way out to a hundred year duration.
buz, missed the memo..its now nzirp who wins when neg 1% is hit, swiss, sweden, keep watching the wheel spin
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Prepare For More Blog Pimping As Whack Job Claims He Needs More Clicks.
The European leaders are in a bind until they can come up with some sorty of complex plan that muddies the waters to make it easier on Greece. If the European leaders who made the orginal agreements with Greece cannot find such a BS plan they can sell to the media and back home, then problems will fester and maybe worst case scenario... My guess on these things, like all public bad news negotiations, is that the disagreement has to fester and mature so that eveyone is afraid of the worst case scenario and at the last minute they negotiate a bad deal that no one likes but is relieved. Then they can compare the worst case scenario to the bad deal they agreed to and claim victory and walk away as heros... Same old story...
The European leaders are in a bind until they can come up with some sorty of complex plan that muddies the waters to make it easier on Greece. If the European leaders who made the orginal agreements with Greece cannot find such a BS plan they can sell to the media and back home, then problems will fester and maybe worst case scenario... My guess on these things, like all public bad news negotiations, is that the disagreement has to fester and mature so that eveyone is afraid of the worst case scenario and at the last minute they negotiate a bad deal that no one likes but is relieved. Then they can compare the worst case scenario to the bad deal they agreed to and claim victory and walk away as heros... Same old story...
Mr. Draghi, Greeks are dying!
Works better in Romanian.
Atena! Atena! La Atena au murit copii!
The Greek debt dilemma......everyone has had several years to deal with this and if they still haven't hedged against worst case outcome, then fuck em....I mean it's not as if this whole thing just popped up unexpectedly over the weekend.
When the Russian army breaches the border of the former GDR, that's when Frankfurt will forget austerity and monetize like there's no tomorrow, because by then not even the least sophisticated investor will lend a thin dime of his own money to Berlin to fight a war Germany is certain to lose. (The smart money, the ones who remember some of their European history, will of course have long since cashed out.)
Till then, forget it. The ECB will monetize debt at Germany's convenience, not Greece's.
Well, you know how it goes: lend someone 100,000 and you own them. Lend someone 100 billion, they own you
Time to just have Goldman Sachs issue 400 Billion Euro worth of perpetual Greek Zero Coupon Bonds.
Greece to the EU: "I'll gladly pay you Tuesday for a hamburger today"
Marxist Greek government plan: use the printing press to buy our government bonds and make it so that we don't have to pay interest on those bonds. Very much thanks.
You're a fool if you think these guys are bringing change to Greece. Print money to find their government. That's their plan to "roll back austerity". Same old Keynesian bullshit.
This is some of the best comedy in years. The Greeks are just getting their war repariations they were denied years ago. The ECB will runs it mouth but in the end the ECB will QE every EMU country or the Fed will stap in and wallah Greece will become the 52 state after Puerto Rico. Of course it will not have real statehood but it will get the same benefits. The major American oil companies will start drilling offshore to tap the newly found oil and other resouces. The US taxpayer will be on the hook who cares really as long as we get the resources. Major corporations will start manfacturing in Greece, after all it is cheaper then Germany and France.
Collect taxes in Greece LOL who needs taxes when you got good olive oil, offshore resources and tourism on the cheap. The EMU will cry foul but as we know the USA is already bailing out their banks with branches in the USA. SYRIZA will cheer Obama and all debt forgiven. Of course the ECB might just step up to the plate and bail all the PIIGSF out just like the USA has. Do not worry all pull up your favorite chair, have your favorite alcholic drink or better yet your drugs and enjoy the show. This drama will go on for years. Nothing has changed and as long as enough money flow to the pleebs to stop them from rioting everything will be ok.
The best joke is France and Germany meeting with Putin to try and put an end to our warmongering administration and McCain. I imagine the USA and the UK ae pissed off right about now knowing they got left off the table. Maybe Europe is tired of being the USA patsy. I really imagine European business and the people that work for them are tired of losing jobs because of these sanctions.
The markets are again green on some of the worst data in years. We just cannot make this stuff up anymore. Enjoy LOL.
"Major corporations will start manfacturing in Greece, after all it is cheaper then Germany and France."
I think that is delusional. The Greek employment laws and cost of setting up a plant (read corruption) make that probability nil IMHO. the Greeks have made not paying taxes a way of life - until that changes....
BTW - I hope they tell the Troika to F off - waiting to see the movie unfold.