The 330 Billion Reasons Why The Grexit "Can" Was Kicked Down The Road

Tyler Durden's picture

Perhaps this explained why Greece and The Eurogroup have (reportedly) come to an agreement to avoid an actual Grexit for 4 months. As Die Welt explains that Euro-area nations will face losses of up to EUR330bn as Greek outright government debt, ECB capital needs, and TARGET2 liabilities have soared in the last 2 years since the crisis last erupted...



While for Greece stakes are high, so does the euro partners have set in the case of a Grexit losses. Grexit is in the capital markets become naturalized name for a Greek euro exit.

All euro countries in Hellas on the various rescue vehicle loans and the ECB, the euro system some 330 billion euros in the fire. This represents about 3.4 percent of economic output in the euro zone. Since the year 2012, the Athens liabilities have increased by 40 billion euros, as the British bank Barclays has calculated.

"What have since the euro countries in the fire, can not be ignored entirely," says Thomas Harjes, a strategist at Barclays. He holds the volume nevertheless manageable, as most Greek debt securities are no longer as from private sources, but the public sector, ie states and their institutions.

Via Die Welt

*  *  *

So - if this reported 4-month can-kick is 'real - The Eurogroup has that much time to 'manage' this exposure before the Syriza-voting members of the Greek public turn to the only anti-EU partyt left - Golden Dawn... and Podemos elections begin in Spain...

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surf0766's picture

the ramp is on


PartysOver's picture

Not so fast speedy, have to wait for EU QE to begin.  Then the perpetual bid will set in.

KnuckleDragger-X's picture

Draghi's magic fairy dust, guaranteed to put the shine on any turd.

Stoploss's picture

June is shaping up to suck big time ass...

SoilMyselfRotten's picture

I find a kick of 4 months to be surprising. It's usually the short ones, the 1 week, the 1 month time frames which lead to the bubblicious stock market activity and the relentless excuse to smack the metals into submission. Nice if i won't have to listen to this shit for another 3 months.

PartysOver's picture

Why do I feel like I am at a Black Tie Event with everyone sipping Champagne and I am wearing my Jimmy Buffet Shirt and flip flops drinking Margarita's when I come to ZH?

News Flash:  Market ain't going down until the banksters turn on each other.

chubbar's picture

I think it is actually worse than that. I don't think this all comes crashing down until they DECIDE it is coming down. By that I'm not implying that these markets can be levitated indefinitely, just that there is a plan in play for when & how they pull the plug. There is a  method to their madness that will only be apparent looking back at the event after a period of time. Nothing surprises me with these madmen.

Renewable Life's picture

And who the fuck thought anything else but THIS would happen???

Come on people, I know no fucking body can look in the mirror and admit this in the western establishment, put this is what a Ponzi scheme IS for the love of God!!!

There can be absolutely no fucking decent or withdrawal or it collapses!!! And these monkey motherfuckers in .gov and the sheeple they herd over, just can't fucking believe that's what's going on here!! So we pretend with charade after charade of fake democracy bullshit coupled with fantasy Central Bank action.
But at the end of the day, our whole fucking way of life in the West is just one big fucking Ponzi Scheming, delusional, mind fuck, designed to steal every last ounce of productive currency and value from your bones, before it grinds you to dirt!!

There, now go back to watching the fucking football match or reality TV series your fucking addicted too, and be happy!!

Joebloinvestor's picture

Greece sounds like the debt pinata of the EU.

They all want to swing and miss.


101 years and counting's picture

S&P "soaring".  up a whole 5 points.  this confirmation of everything being awesome should have sent SPX up 20 points....

Tsar Pointless's picture

Patience, grasshopper. We still have two hours of trading remaining in the day.

Four chan's picture

the fed can buy all the bad paper and put on the us tax payer tab just like it did with the tbtf banks in the us.  end the fed

Ness.'s picture

S&P is up over 20 pts from the over night lows.  And rising.

pods's picture

Yep, can kicked. And in four months, it will an exponentially bigger can needing to be kicked.

The can grew exponentially larger since the last Greece fire too.

In the end, the math wins.  



semperfi's picture

everything that has a beginning has an end - question is, which will end first - you or the can kicking (ie, will we live to see it)

Thirst Mutilator's picture

can kicking is the only known perpetual motion machine in the known universe

El Vaquero's picture

Which begs the question:  Who will be the first to divide by zero?

Tall Tom's picture

Some will say Newton. Others will write that Liebnitz was the first.


To give a definition to that indefinable infinitesimal, "that indefinable nothing that somehow motivates you"***, was revolutionary and that is an understatement.


Tis the essence of creativity, defining that which is not defined, although Newton did it because it was applicable. Liebnitz was more of a purist.


Newton was not the Treasurer of England because of his wonderful demeanor after all. Tis written that he enjoyed the hanging of counterfeiters...


***Quote from "Compulsion". Here is Martin Gore's cover of that tune...Off of the album "Counterfeit".


And its about time

And its about time...





PartysOver's picture

Yep, ECB will QE all Greek debt.  Problem solved.  Next?

yogibear's picture

The banksters will seize anything they can before they eat their bad bets.

Not surprised of this can-kicking.

stateside's picture

If the can is kicked down the road Yanis Varoufakis will have had his 15 minutes of fame and now back to the irrelevant academic world he goes hopefully replaced with someone with bigger balls.



Emergency Ward's picture

Meet the new policy.  Same as the old.....oh what the fuck.  How long until the "next" Greek crisis?

Philo Beddoe's picture

In June people will be on pins and needles to see if the SP will dip below 2250 over some new manufactured crisis. 

semperfi's picture

but then the "all awesome" horn is sounded and it will soar!  5 points

stocktivity's picture

4 months...and then they settle...again.  It's all Bullshit!!!

Mountainview's picture

That's it ...extend and pretend... and people still accept these colored papers as store of value!

semperfi's picture

kick the can - that's all they are ever going to do - that's all they want to do - they will do it until their legs are cut off - then they will wheel-chair down the road wacking it with their hands - and once their arms are cut off they will use their nose - only once their heads are cut off will the can kicking stop

Rainman's picture

hilarious fact ....back in the day,  Bernank coulda bought the whole lot of Greek debt with 4 mos. of QE

ebworthen's picture

Looks like Malta is the place to be, or St. Petersburg.

Peter K's picture

Champaign leftists cut a deal. What's new?

Bring back the Colonels, I say.

Not only will they do the right thing, but will make all those commies get hair cuts in the mean time.

walküre's picture

120 days to get ready, liquidate and accumulate as much precious as you can.

Usually those types of events are not broadcast ahead of time. Consider yourselves lucky.

Thank you, Greece.

walküre's picture

Listing real estate next month. Converting equity. I'm dead serious.

stacking12321's picture

many people, myself included, have been expecting a deflationary collapse (i.e. highly valued dollar and drop in commodity prices), before the next round of hyper-QE is announced leading to severe inflation.

i think the deflationary collapse has started, with dropping oil and commodity prices and rising USDX.

for now i have slowed down any PM buys, and right now am instead stacking $USD and waiting for the right moment.

gcjohns1971's picture

What difference will 4-months make?

It will allow the Greeks to increase their debt to $400 Billion - thus increasing their leverage over the rest of the Eurozone by a commensurate amount.

Why work?  Why be productive?

Gain money and power at home by taking loans, and then refusing to pay them unless given a larger loan! Rinse and repeat!  It is just that easy!  No muss! No fuss!  No waking up at the crack of dawn to be at work on time!


It is the new money-making system sweeping the Continent!


andrewp111's picture

It gives the Greeks time to withdraw all their bank deposits and move money out of Greece, and gives the Greeks time to print up New Drachmas and prepare for Grexit.

it gives Germany and France time to come up with an emergency plan for full fiscal and political union, complete with an EU Army that can put Greece under occupation, if necessary.

Augustus's picture

What sauce do Greeks put on that donkey dick when they eat?

will ling's picture
will ling (not verified) Feb 20, 2015 1:57 PM

ZH devotin' way too much "ink" to grexit/eurozone realm. it's all really very meaningless.

LetsGetPhysical's picture

Was there ever any doubt? I must have missed the part where they said they wanted to leave the EU? The Dave vs Goliath meme here on ZH has been making laugh. They just want more free money. Rinse. Repeat. 

Unknown Poster's picture

Are these loans to pay the previous loans?  Yanis promised increased spending, the end of "austerity" and more "investment" in the Greek economy. If the people don't get a big cut of these loans, they will claim the loans came out of nowhere and bailed out the Germans.

Augustus's picture

Yanis made the first "investment" in raising pension payments.  Pensions as percentage of Greek GDP are about 1/3 higher than EZ.  Suffering for austerity?

raeb's picture

Greek debt will continue to increase as will all EU debt.  We will all be subjected to more iterations of this circus until the final implosion which may be fissionable.

Seasmoke's picture

No one ever picks the hard choice if able to kick the can. I knew just by looking at those 2 Greek assholes this would be the result. Why the most obvious result makes Gold go down however, I have no fucking Clue. 

lordbyroniv's picture

Because can kicking engenders confidence for govt,

You clearly arent reading your Martin Armstrong!


petroglyph's picture

Wouldn't Greece leaving the Euro finally trigger a CDO event? Does AIG have this covered for the squid?

falconflight's picture

Most of this loan debt has already been converted to public debt, no banks are going down, not even Deuchesebank.