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ECB To Grant Greece Additional €3 Billion In Emergency Liquidity, €68.3 Billion Total
Those wondering if Draghi would be so bold as to precipitate a Greek bank run and funding crisis by yanking the country's Emergency Liquidity Assistance program, which as of two weeks ago was boosted to €65 billion, now have an answer. According to Dow Jones, the ECB just boosted the Greek cash allottment to €68.3 billion, an increase of €3.3 billion:
- ECB SAID TO OK CONT. EMERGENCY LIQUIDITY FOR GREEK BANKS:
- ECB SAID TO OK ELA FOR GREEK BANKS OF EUR68.3B FOR 2 WKS: WSJ
Which means that the cat and mouse game between Greece and Europe will continue for at least one more week, because that's when, according to Kathimerini's Greek sources, the nation runs out of state cash which will have the same impact on the Greek negotiating leverage as a full-blown bank run, which of course has still not been mitigated and in factis likely only to get worse in the coming days absent a deal of some sort.
In retrospect, Draghi may not have had to do anything to accelerate the resolution in the Europe vs Greece standoff: it looks like Greece did that work for him.
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White power
<White power
<White powder
Just In Time (JIT) delivery of the ELA. The drip drip drip of the water fiat torture device.
Print, baby, print!
Greece has the right to print Euro! Print a trillion and own Germany!
You can always find some change under the sofa's cushions.
Just ask California how its done.
The first party to blink loses.
Draghi and the ECB just lost.
My thought exactly. Somebody blinked. Frau Merkel will be whipping the shit out of Herr Schaeuble this evening. (WB take note.)
If capital controls aren't imposed, then that much is likely to leave the country if Syriza doesn't use the time to change their tune and get with the programme. This way the Greek banks have the money to give those depositors to take their money out of the country and, for most I would guess, into northern European banks. It won't leave the Greek banks themselves any better off . . . or less in need of money for future operations.
Sticking it to the Greek government and the bailed-in Greek people while testing their nerve for a few more euro and giggles.
Greek Banks are offering the facility invest in Mutual Funds in their Luxembourg Subsidiary Banks
Will the EU cover them just as the Fed did the European bank branches in the US in 2008? Or do the laws define this thing specifically?
Bob:
"if Syriza doesn't use the time to change their tune and get with the programme."
Respectfully, GFY.
What are you, a troll for the EU/ECB/IMF/BIS/FED?
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lol, quite the opposite. just speculating on the ecb's motives.
Free money for the inefficent- I go to buy bullions and I want to be paid in Krugerrands.
Pull THIS finger.
Now you Greeks, get your Euros out of the bank and buy Gold and Silver!
Unless you are short on toilet paper of course...
Ahhh. A week-to-week extension. Wow.
Anticipation...it's "making me wait" for Grexit.
(but get your precious in the meantime).
zeee parkinglot called greece iz american and ze quicker zee germans understand zis ze less zeir image vill be tarnished...
zeee parkinglot called greece iz american and ze quicker zee germans understand zis ze less zeir image vill be tarnished...
Not much money, merely a token.
Greece: WE DEMAND MOAR!
Keep the heroin coming.
When is the next fix?
Only Dragni knows...
The Eurocrats will huff, puff, and totally cave in.
it's not about caving in to greece, it's about caving into itally, spain and portugal.
No its about caving in to ze U S of Ace.
As I have been saying, they must print moar and give it to Greece. Bondholders want to be paid. Banks go bust if the derivatives daisy chain blows up, and Greece hold the trigger.
https://images.search.yahoo.com/images/view;_ylt=AwrTcdNAXuNUa7oAGyonnIl...
Takes time to organize the blowup of hundreds of trillions in derivatives.
Never happen, its fraud not real insurance its just a way to wink and get paid rent. The money doesn't exist anyway. It would take a decade and new printers to even try.Couldn't be done. Will never be done.
"After provideing the 3 billion, Schaeuble said he was 'extra cereal' that this would be the last free giveaway."
After that, Joe Biden gets to fuck your wife's mouth.
...or your 7 y/o daugther's..
https://www.youtube.com/watch?v=L4OYPiV1GsY
Excelsior!
I ain't paying nobody back either. F'em all. Can I get another loan to carry me over?
"Here Greecey Greecey....I've got a bone for you."
Nothing moar than extortion of 'borrowed' tax-payer funds to support the infected & twisted socialist ideology that is the scourge of the planet! The lucky 10 future generations will get to pay this 'evil' off too!
Emergency crack supply!!!
Smoke it NOW!!!
Say I am ia business owner thinking of expanding in Greece....what do you think I am thinking.....I think I will wait....and so it goes with the economy there...stop and wait...
Again, let's play this out like any strategic Bankruptcy would be played out:
- First remember, all warfare is based on deception.
- Second, bankruptcy and surviving it is warfare.
- Third, you need to buy time by deceiving your enemies to implement the plan. So play hard with the creditors but also display some "willingness" to settle (e.g., feeding the EU and ECB that Greece wants to find a solution). Buy time in the form of days which move to weeks and finally to months. Translation, Greece and the ECB/EU will structure a 6 month extension and proclaim all is well.
- Fourth, secure resources or DIP (debtor in possession financing) behind the scenes to execute the plan as you are going to be placed on COD terms with everyone. This also entails firing up the ND or New Drachma printing presses to reintroduce the currency.
- Fifth, with the DIP financing in place (e.g., hard currency loans from the likes of Russia, China, or the US in exchange for god knows what), pull the plug on the creditors and immediately move their priority from relatively high to last place (i.e., from a type A vendor to a type F vendor, last in line to get paid). At the same time, reintroduce the ND and let the games begin in terms of devaluing the currency.
Russia and China have a lot to gain from providing support and establishing a stronger military, economic, and political pressence in the region (as Greece has strategic military value). However, the US has far more to lose if Greece not only folds economically but socially and militarially as well. There's no good scenario for the US here as if Russia or China gains a foothold in the region, this will be a blow but even worse is if Greece completely implodes, it runs the risk of becoming another breeding ground for ISIS (as this group feasts on ravaged countries left in shambles by poorly structured and executed Western policies). Just look at the spread of ISIS now into North Africa and I'm sure Yemen soon.
As I stated before, Greece will buy time with the EU and then eventually tell them to FO, play Russia and China to step-up but only to blackmail the US into bailing out the country. Wasn't too long ago that the US was focused just on bailing out auto companies, insurance groups, and banks. Now it's in the complete country business. As the old saying goes, the more things change the more things stay the same.
"Russia and China have a lot to gain..."
Their biggest gain will be the collapse of the largest economic competitor on the same land mass - The EU.
"US was focused just on bailing out auto companies..."
The Great American Taxpayer bailed out both Europe and Japan after WWII. They provided the majority of the NATO funding and nuke deterrent. Looks like that franchise is revving back up with the Ukraine "loan(s)".
Good analyses except for a few points. If you know the Greek mentality, which you obviously don't, you know that Greece never can and will be a breeding ground for ISIS. Beside the point that the Greeks are Greek Orthodox Christians, they're not the fuckwits you'll find in West-Europe and the US and will stand up for themselves. Best way to fuckwit the EU:
– Default on the debts to European banks (Blowing up 3.4 to 4 trillion of derivatives on Greece and interest rates on Greek bonds etc)
– Support the Russian pipeline trough Turkey and Greece
– Give Russia and/or China a port
– Lend money from Russia and/or China
– Let the tourist pay in Euro's and give them 'tourist' money in return like Denmark does
– Make a free tax haven with full anonymity to everyone and every company on the globe
18th Chinese naval escort fleet visits Greek port of Piraeus http://en.people.cn/n/2015/0218/c90786-8852342.html
China Premier discusses port project with Greek counterpart http://customstoday.com.pk/china-premier-discusses-port-project-with-gre...
Greek postwar alliances show Europe has more to lose than money http://www.bloomberg.com/news/articles/2015-02-16/greek-postwar-alliance...
Someone blinked.
Inefficient Greek buttfuckers need to get their Drachme back!
Sounds like a big win for Greece to me.
Called the ECB's bluff...got the money.
Definitely inflationary for the EZ. Ultimately still looks like a win for Germany as they can handle the inflation/devaluation.
Greece can still take the euro's and "smooth the exit" better.
Sweetheart, this is just your drug dealer handing out some free stuff, because you told him you wanted to get clean.
Greek theater.
Their better actors then the Eurocrats.
It's transforming into a comedy.
Eurocrats want to act tough but cave in at the last minute.
The Eurocrats look like some real pushovers.
Take note Italy and Spain.
The Eurocrats will blink because they have more to lose:
Everyone knows Greece is broke, but some suckers still believe in the EU.
Remember when I said "more like 48hrs" left in funds? Then this
ECB just reenabled Greek shenanigans, the shit-for-brainses.
They [ECB] don't have a choice. If they don't extend ELA they know Greece will default and leave. The ECB is just as bankrupt as Greece is and the ECB is relying on the interest payments of it's debt colonies to survive itself. Plus the Greek people aren't lazy troublemakers, they are a completely impoverished people with nothing barely scraping by LARGELY because of austerity. Most of the austerity money, some 90% i believe the data said, went to save pro-Euro financial institutions while the Greek people only got 10% yet inherited 100% of the debt to pay back.... There is no way they can pay it back, Greece has nothing left. Austerity has been an exercise in imprudent lending and the lenders will have to take some large losses as a result of their imprudence. This is capitalism. You make bad loans without accurate risk assesment you go bust.
Tommy, the time the ECB is buying isn't for Greece, it's for itself.
That's the core of the Greeks epiphany. They could say nothing and the ECB would still send them money.
Good point! The greatest of all motivators - self interest.
Truest sign of bankruptcy, it's for the "for the children".
Run Greekies run!!! (*)
(*) Unless you *already* have the runs, then stock up on toilet paper and condoms, in case the Eurozone goes the way of Venezuela... It is the Socialist Endgame.
Tail's wagging the dog now Mofo's! Too funny.
Yanis should just ask for 400 billion euros over 50 years with interest rate set at -2%. After all the " money " is just congured up out of nothing. Would be a win/win for everyone.
Why does Greece need more money? Oh, yeah - the Greek government spends more than they take in.
In the words of the great Rick Santelli: Stop the spending; STOP the Spending; STOP THE SPENDING.
It's a token indeed. With an outflow of ~500m per day this will last until tuesday max.
In which case they'll probably get some more.
I wonder what would happen if the Greeks stopped paying and just did what they wanted. Not default or anything. Just act as if they did receive the restructuring they wanted. Would the ECB just keep giving them cash to keep the plates spinning?
So, the Greeks are now swallowing EUD 1.5 Billion a week of support while they decide if they want to reeive support.
Socialists will never face reality until tossed on the street.
It's a sovereign country. Who you gonna toss to the streets? It's not youre repoing a car
Toss to the Street, in this case, is let them forage for their own sustinance. Now the Greeks continue to steal the food from the able of every other EU taxpayer.
Actually this additional money makes total sense, the point is to make sure the banks last till the 28th of February, and don't break down in the middle of the negotations.
If the talks goes nowhere, then right before the 28th lots of people will take their money out of their banks. We are no longer talking about 500 million per day, but severall billions per day. ECB will not provide that funding and will let their banks crash.
Greeks will know before anyone what their decision will be related to Grexit.
An individual or company waiting until the last few days to exit with their own money will be risking capital controls and Cyprus bail-in.
Smart Greeks will, dumb Greeks won't.
There are lots of Greeks in denial, who think EU will do anything to avoid a grexit.
Two points about the top two players:
1. Nobody in the ECB (from Draghi down to the janitor) is ever going to switch off life support to the Greeks, because of the real risk it will pull down the rest of the EUR-zone, which means no more EUR, which means no more job;
2. Ms Merkel, given a choice, would spend _anything_ to keep Greece in the EUR-zone, simply because a Grexit looks like the end of the United States of Europe project, which is something she feels (having been brought up in East Germany) is an essential thing to stop Germany starting another European war (and any costs are just part reparations for WW2 anyway).
There are two ways the situation collapses:
A. The Greeks get themselves into a situation whereby they cannot take the money (some sort of political pride thing); or
B. The EU gets itself into a situation where the new arrangements need parliamentary approval. The Netherlands (no WW2 hangups or belief in EU-anthems and flags, just a simple desire for free trade) might say 'no' on the grounds a cut-out now is cheaper for their citizens. The only way out of that scenerio would be for Germany to offer to guarantee any Netherlands losses. If I were in the Netherlands position, I would take Germany's credit, but I think that even to make the offer would be too much for Merkel (and, if not, would result in her being removed from power before the deal was closed).
Watson
1. It depends on when they do it. If the banks in Greece fail after the 28th, then it won't lead to much contagion, because it is a result of the failed negotations. Other countries won't be in danger, as long as they work with the EU, then they will get their ELA funding.
2. Merkel even considered kicking out Greece in 2012, she won't spend anything to keep Greece inside the euro. The best evidence against this theory is what happened in dec 2014. If they were willing to give Greece some concessions, why not give them to New Democracy so they can remain in power. EZ will do fine without Greece, but if they give in to the demands to Syriza, then it will create populist parties in southern Europe and anti-EU parties in northern Europe.
Either Greece agrees to the austerity measures, or they will get kicked out in March.
This is probably a dead thread by now, but one more post before I bed my wife will probably be OK . . .
1) The EU will cave.
2) IS will take over Europe.
Both for the same reason:
Europe has lost its nerve to survive. So they are relying on their money to buy their way out of everything, and sometimes money can't save your life - ask any person with terminal cancer.
The cancer for Europe is sexual depravity, drug hedonism, victimization rationalizations, gross effeminization and sexual disorientation, lack of convictions about ethics and morality, unwillingness to confront criminals in high places, tolerance of gross corruption, acceptance of "anything goes" personal conduct . . . the list goes on and on.
Blame the philosophical airheads who build reasons why each of these traits is OK for society. It all adds up to lunancy - take the example of the State Dept. MSNBC program host-in-waiting and her insane conversation that what it takes to bring IS back to Earth is that they "need jobs."
What a bizarre excuse for intellectualism; but she has a great face and big boobs, so give her airtime.
And take Obama for example as well - at what point do you finally admit he is a psycho? His lying is pathological - you know from his raising he is a Muslim, not to mention his own words saying he will side with them.
Yet the psycho liars masquerading as journalists just ignore reality - they are as whacked as the State Dept. spokesperson. How can anyone possibly give them any credibility?
Further, Obama told the world for 16-years in his literary agent's bio that he was born in Kenya - he wrote that on the info form, proofread the copy, and signed off on it. What kind of mentally disturbed person lies like that - and is still allowed to function is position of power?
And while it's easy to say it's because he is Black, look at the way no one of significance and influence is truly disturbed by Hillary and her delusional sniper attack. They know she's a nut case, and still they back her for president.
Given the fact that these people are accepted to hold power, why is anyone surprised that the West is crumbling under the weight of such insanity?
In short, the West, and Europe, are rotten fruit ready to fall to the ground and decay away into nothing. It really is the decline and fall of Western Civilization as it has existed since the end of the Dark Ages.
The banking crisis is only one sign of this end. You can go through my list, and each of them are just as much signs of the end.
We are witnesses to the end of a historical era. Some of us are young enough to suffer through the fall - others of us are old enough to die and not suffer.
Either way, both points 1 and 2 are true, because everything that followed about the character and composition of Westerners is also true.
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