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Doubts (And Bond Yields) Are Rising Again In Greece
If "everything is awesome" in Greece (and Europe) then why - oh why - did Greek government bond yields surge higher today, Greek stocks tumble, Greek bank stocks (and less so bonds) collapse, and Greek CDS jump? It appears that as the euphoria relief wears off, as WSJ reports, doubts over the willingness of Greece’s left-wing government to follow its creditors’ orders on budget cuts and economic overhauls spilled into the public today. IMF's Lagarde stated that the Greek proposal "is not conveying clear enough assurances that the government intends to undertake the reforms," and even Syriza officials admitted, "it is difficult to determine how the government can fulfill its promises, including the debt write-off, with this agreement,” as doubts arise across Europe's policymakers and markets.
Greek banks were monkey-hammered... not exactly the reaction of a confident "deal done" investor base...
And Greek government bond yields surged (5Y +65bps today!)
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As Xinhua reports, Germany's Schaeuble remains as doubtful as ever...
German Finance Minister Wolfgang Schaeuble said on Wednesday that there were doubts in Germany about Greek government's credibility over debt issue.
The minister said Eurogroup's decision on Tuesday to extend aid program for Greece until end of June was "not easy" for creditors, nor for Greek government.
"Now the question is: Can you believe the assurances of the Greek government or not? There are many doubts in Germany, this must be understood," Schaeuble said in an interview with German SWR2 radio.
A poll by INSA institute showed on Wednesday that only 21 percent of Germans support the extension of aid program for Greece.
Bundestag, the lower house of German parliament, was due to vote on the deal on Friday. Though Chancellor Angela Merkel's governing coalition of CDU/CSU and SPD holds the majority in the parliament, skeptical voices were heard on Wednesday.
CDU's economic council sent a letter to parliament members to urge them not to support the extension.
"We must not fear of a blackmail from aid we have already paid," read the letter cited by Frankfurter Allgemeine Zeitung newspaper.
In an interview with Passauer Neue Presse newspaper, CDU politician Wolfgang Bosbach warned that he would vote against the extension on Friday.
Schaeuble said euro zone finance ministers' decision on Tuesday gave Greece more time to fulfill its reform commitments made to international creditors.
"If they do so, they will get the outstanding payments from the current program," he said. "No single euro will be paid before that."
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This is a long way from over... And sure enough Fitch pitches in...
- *FITCH:GREEK DEAL MAY NOT ADDRESS ALL BANK FINANCE UNCERTAINTIES
- *FITCH: HIGHLY UNLIKELY GREECE TO GET MKT ACCESS BEFORE SUMMER
- *FITCH:GREECE TO PROBABLY NEED REPLACEMENT PROGRAM PRE JUNE END
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Bring out riot dog.
<<<<<<<<<<<<Grexit this week!!!!!!
<<<<<<<<<<<<No Grexit this week??
Hope they don't. This Greek Drama is so dang captivating. I look forward to waking eeach morning with a cup of coffee and fresh baklava and reading the next chapter. So much more to come.
If that "Greek" memo had been written as a business plan in the private sector, they would all have been fired, especially when not even accompanied by an XL spreadsheet showing the commitments in numbers. Statements of intent are fine but precisely HOW you will action those statements and what results you aim to achieve are what really matter. Without this, it is all just a nice bedtime story......but of course everyone knows that and it is just a question of kicking the can beyond the next (March) interest payment to allow Greece to service the existing debt until after ECB QE commences ('Coincidentally" also in March), the proceeds of which can then be used to bailout the affected Banks and "Institutions".
Apple's shares acting like fixed income... tightly correlated as of late..
http://hedgeaccordingly.com/2015/02/goldman-apple-inc-once-again-the-hed...
ARISE THODORIS, SON OF KANELLOS
Not in the U.S.S.A....
"it is difficult to determine how the government can fulfill its promises"
ermmmmm ..... when did any government ever fulfill it's promises?
Every Democrat Government promises to do something about the bankers and Wall street excess ....... just imagine the shock if they actually did.
It's probably difficult to believe that they can't fulfill their promises because varoufakis explicitely said that they couldn't.
Could be the end of Merkel.
A British newspaper beats ZeroHedge (a first):
http://www.telegraph.co.uk/finance/economics/11435649/Greece-to-stop-pri...
What a fucking joke.
The Greek blowhard folded like a cheap suit, or was bought off.
It got them a little wiggle room, you will see.
New gov setting up shop/refilling soap dispensers/replacing toilet paper, the last jagoffs took. as soon as their desks get set up proper, the real Euro panic will begin..
Just dicking around for more time is all this is.
2-3 yrs ago this top notch production would have gotten them 6-8 mths, or to the next election, or to the next no confidence vote, or to the next closed door meeting breakthru..
Now its down to weeks/days, its over, the foot kicking the can has no shoe on it..
Achtung FrauFuckers no more bets, says Herr Slobble.
Greek Leftists prepare for the big war with the plutocrats, that's why.
This like watching a circus of fucking bobble-headed morons. Greece can't, won't and ain't gonna pay back no stinkin debt!
So now what? I thought these "finance" motherfuckers were genuises?
I know... why not raise taxes!
Just plain stupid sh!t!
Early retirement unchanged; still at 50. 8 weeks off during July-August. Free college and health care for all Greek citizens. Taxes optional. No foreclosures EVER, just stop payments if you like. No back taxes to be repaid.
It's pretty obvious that eventually there must be Grexit... just a matter of time. Even the EU knows it now, as Germany makes it clear that EVERYONE in the EU must toe the line and agree in lock step if they want to be in the club... no more unilateral moves by any upstart. That's why the EU is continuing to beat Greece even after they caved. The EU is now laying out a scorched financial earth policy to make an example of Greece so that when it leaves or is forced out no other PIIGS will dare try this again.
making an example of the Greeks sounds rather unrealistic given the complexity of the euro arrangement....
Complexity only matters if the Rule of Law is followed. When was the last time bankers or sociopaths worried about following the Rule of Law?
Release the Algos!!!
Fuck you fuckers!
Still no deal? C'mon Syriza, tell the EU to fuck off.
Enough with the dance moves already.
Jump the EU!
Stop payment, call Putin, make the necessary arrests and pull the plug.
I wanna see the EU self destruct.
Done !!!
Calm down people...SYRIZA's election was just a test of the water. We are now ready to go full on, hardcore red. KKE which is the official Communist party of Greece and has been since the 40's is (as we speak) organizing a massive protest/rally in the heart of Athens. We taking bolshevik reds here, we are talking full on Communism, none of that weak SYRIZA leftist stuff. Lines for food coupons, Nationalization of Banks, Drachmas, end of private property, exit from NATO and EU...we talking the full Monty!!
Lets see how EU and the rest of you will deal with that, would you still talk bonds, yields and graphs?
With a Party like that, you Greeks may be rewarded with a $5billion check, military advisors, and heavy weaponry...
quite the opposite my friend...others will need your suggestions. We will simply become the "bitches" of the Northern Bear...better then being the bitches of the Germans..don't you agree?
Greece fell into a black hole of debt years ago. It's mathematically impossible for them to climb out. One way or another, the debt has to be written off. Sooner is better than later. It's hard to figure out if the Greek or the German finmin is buying time here. I still have faith that Syriza will do the right thing and tell the Germans to go fuck themselves.
we still have faith too...4 months from now we will know better. As far as "..climbing out, one way or an other.." I urge you to reconsider by viewing the probem outside economics and via geopolitical glasses.
They even took away football!
http://www.bbc.com/sport/0/football/31627613