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Germany Has Had It With Greece: Schauble Says "Doesn't Know What To Do With Greece Now"
In his fiercest rhetoric yet, Germany's angry Finance Minister Wolfgang Schaeuble unloaded at a CDU event today:
- SCHAEUBLE SAYS DOESN'T KNOW WHAT TO DO WITH GREECE NOW
- SCHAEUBLE SAYS NEW GREEK GOVERNMENT HAS DESTROYED ALL THE TRUST THAT HAD BEEN REBUILT
He went on to explain that "no one I talk to sees how Greek approach can work," which perhaps explains why Greek 3Y bond yields spiked back above 20% for the first time since the election today.
Some additional headlines:
- *SCHAEUBLE SAYS GREEK T-BILL AUCTION DESTROYED CONFIDENCE
- *NO FOREIGN INVESTOR WANTED TO BUY GREEK T-BILLS, SCHAEUBLE SAYS
- *SCHAEUBLE: NO ONE I TALK TO SEES HOW GREEK APPROACH CAN WORK
And GGB yields are exploding...
As Bloomberg reports,
“Greece was able to sell those treasury bills only in Greece, with no foreign investor ready to invest,” German Finance Minister Wolfgang Schaeuble says in Berlin. “That means that all of the confidence was destroyed again.”
On Greek govt’s efforts to balance curbing austerity and fulfilling obligations for economic reforms: “None of my colleagues, or anyone in the international institutions, can tell me how this is supposed to work”
Schaeuble comments at Christian Democratic Union event in Berlin today
Charts: Bloomberg
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Define "Trust", as seen by a German/EU banker.
give us all your assets for virtually nothing and save our banks (using yours as the pass thru conduit vehicle) at all costs to include the decimation of your country
Maybe that "trust" thingamabaklavajiggie should be centered upon the One and Only Truth which is "Are You Going To Get Paid"?
Now, if my brother wants that $50 back, he'd sure as shit better be real nice to me.
Somebody oughta put a stick through those wheelchair spokes
This is how fucking stoooopid this all is So Greek yields are big and gettin' bigger, denominated in Euros while the EU is in deflation.
So, the ECB buys all the Greek Debt with newly printed Euros and they're money good paying the ECB back with their newly minted Euros on Greek debt they bought from the government in Euros at Yields So BigAssed that Kim Kardashian would be put to shame
Better than reality TV/Kabuki Theater!
Which PIIGS+FUK members will be kicked off the EU Island?
And now a word from our sponsors, UBS, Goldman Sachs & JP Morgan Chase.
Latest iteration of It's a Knockout/Jeux Sans Frontieres commonly misheard as the lyric she's so funkier or Jean Claude Juncker by Kate Bush in the song Games Without Frontiers by Peter Gabriel.
https://www.youtube.com/watch?v=3xZmlUV8muY
i would think that based on the very factual economic numbers that currently exist in the world....20% is about right, for a 3yr us t-bill ...
As long as the €uro spice flows from the Dragi system, the Dax will be fed....all time highs again today. Man, when this bitch blows it´s going to be the economic equivelent of the Tsar bomb going off.
And that is what keeps me up at night, it will be Tsar Bomba.. Duck and cover won't work unless your a hundred miles away. So, where the hell is Schnauble, Merkel, Jamie, DB, UBS and the uber elites going to be hiding out physically and financially.. If I could figure that out I could get some sleep.
It's said that in the old days Merkel was looking forward to retirement in part because she would finally be able to see California. (The GDR allowed over-65s to travel to the West relatively freely, as they were considered less likely to defect and much less of a loss if they did.) I can easily see her retiring there still, with a sinecure at UCLA allowing her to pass her time writing her memoirs and occasional FKK sunbathing.
Greeks have loose buttholes, thats why theres shit all over the place.
RIPS
Joy of Junkers with loose buttholes and no response? Pussies.
Show me a time when the greeks havent given up their buttholes to moneychangers?
Not anything recent I can think of.
Anti Austerity...means print forever.
Put that in your butthole and smoke it.
RIPS
Greece wil default, because they have no way of paying their absurd debts. Germany will throw a hissing fit because its banks are over-exposed to Greek debt. Then the EU banks (starting with Douche B.) will have to insert A LOT of write-offs into their already pitifull balance sheets. That will throw the entire EU into an even bigger mess than the current one. But hey, at least they have a 4 year plan...
"because its banks are over-exposed to Greek debt"
not really
the troika now owns most of the debt. it was transferred onto their balance sheet, and thus the EU public, to save the precious banks. heaven forbid anyone take responsibility for their bets. fascism at it's finest https://twitter.com/YiannisMouzakis/status/568044978112499712
the derivative book is another story though
The Greek debt swindle was classic. In 2009 Greece's debt was $300 billion. It then "got" two huge bailouts in 2010 and 2012, of about $140 billion each. Less than 10% of that $275 billion stayed in Greece and was spent by the Greek government; more than 90% went directly and immediately to Deutsche Bank, HSBC, JPMorgan Chase, and their fellow sharks, with small amounts crumbling to the hedge funds swimming alongside. Former Greek Labor and Social Security Minister Louka Katseli has given documentation that the Greek government actually got to spend or invest just 3% of that $275 billion. The only banks which had to write off their "Greek debt" were Greek banks; all of Wall Street and the London-centered banks got their toxic debt "assets" guaranteed 100% by this European bailout swindle. This made the Greek banks so bankrupt that the Greek government then had to borrow more to bail them out with $50 billion — so Greece's debt was increased when supposedly being reduced! A total swindle!
Then, between 2010 and today, Greece, Ireland, Portugal, etc. were ordered to pay the bill for this huge new Europe-wide bank bailout debt. They imposed a slashing domestic austerity until their people emigrated, death rates rose and birth rates fell, and clouds of wood smoke rose over modern cities whose inhabitants could no longer afford modern heat. After five years of this punishment, Greece's $300 billion debt has become $350 billion or so — after $250 billion passed through to the banks!
And the other European countries are also on the hook for this phony debt, all of it. They guaranteed it; Greece and Ireland and the other austerity-crushed countries can't pay it, so the rest of Europe must either agree to reorganize that debt and write it down, or their taxpayers will pay for the swindle.
your history lesson overlooked the Haircut that the banks and private investors took on their Greek debt holdings. IIRC, it was about 60%.
who were those banks and private investors? primarily Greek.....
money in money out
Numbers do not lie, despite the haircut which was window dressing pretence.
Well somebody will have to accept the write-offs, 'cause the default is coming like it or not. The thing is, Greece is just one from a long line of insolvent EU countries which will all have to default at some point, or they'll simply cease to exist as functional societies. It doesn't matter what the morons in power (of countries, banks, or EU institutions) want or talk, in the end gravity always wins...
knuckles,
Yield is only earned when debt is repaid with interest.
You have fallen into the trap of believing the calculator is infallable.
Don't worry knukles, when your water runs out you'll have bigger problems.
The Euro is like California, mismanaged and inhabited by morons.
It's all greek to me!
"no one I talk to sees how Greek approach can work,"
No one with an IQ above 80 would think the Euro and EU(SSR) experiment would ever work. Countries like Greece, Spain, Portugal and others with a strong currency and centralized Brussels police state control.
Trust means not telling people you're never going to pay it all back even if it's true!
C'mon Greece, stick to the script for heaven's sake cause we'd like to keep this euro thing going past summer at least.
my roomate's step-mother makes $79 hourly on the laptop . She has been fired for 10 months but last month her pay was $18694 just working on the laptop for a few hours. see here... www.globe-report.com
"Trust"
*snicker*
*mmmmph*
*guffaw*
*bwahahahahahahahahahahahahaha*
I'm sorry but I wish Schaeuble would fuck off.
DavidC
Krugmanites certainly don't appreciate Schaeuble's analysis.
Can't let some rational German spoil the party.
They have destroyed trust, but not for the reasons that Schaeuble would tell you.
Credit Event.
Isn't it funny how everyone is talking about anything BUT the credit event? That and the fact that Italy and Spain and many others are next in line for whatever happens?
Yeah, I don't see how they get around it if Greece misses a payment (or tells them to go stuff it outright) this time. I'm sure they'll find a way, but I don't know how. Some of that debt is under English law, not Greek law which would make the situation that much stickier. Italy and Spain have been scribbling down notes furiously over the last few months watching this unfold.
Take France into account. Even earlier than Spain.
Simply awesome!
https://www.youtube.com/watch?feature=player_detailpage&v=G2y8Sx4B2Sk
So many paper claims.....
So few real assets....
fuck em.
trust in whom?!
Oz the Great of course.....
Well, obviously the correct answer is to BUY those Greek 3Y bonds.
Greece is the second importer of the German arms industry with 8% of the country's total exports after USA (10%).
It can't all be for the Greek army, can it? Perhaps the Greeks are resellers of German made weapons technology. Could be a loophole to sell via Greece. Weapons as collateral are as good as gold which is why war bonds were all the rage.
Who cares? German shits 25% cheaper in USD term this year thanks to the Greeks. DAX to the moon!
"no one I talk to sees how Greek approach can work,"
~ Same as it has been, robbing Peter to pay Paul. Peter has been cleaned out. Just default and get it over with!
That is the crux of the issue. Greece wants to be thrown out of the EU and the EU wants Greece to leave the EU. It is no longer a financial issue, it is a PR issue.
It's also a banking issue. Nobody really know just how bad it will fuck the German banks if Greece leaves.
The new Greek government doesn't care about defaulting...but they do care about the continuance of their ongoing deficit spending...which is totally dependent on external financing. They, like every other government in the world, don't want to give their citizenry the bad news that lifestyles are going to have to change, and there will be rough roads ahead. Everyone wants to sell roses and lollipop predictions about the future, because no one wants that 'hard times are com'in our way' message. Just like the US.
Clearly the only remainig answer is to send in the tanks. It's for their own good and it gives Germany breathing room.
Lebensraum, if you will.
level of bullshit is too absurd. Greece will fail and German will pay for it. They can't do anything about it
cut Greece lose and clean it up in the morning. The world will survive. Fascist debt statism won't , but, that shouldn't be an issue, should it?
Nope, german banks lowered A LOT their exposition towards Greece thanks to the european funds built by every european citizen's contribution.
Germany is not paying for anything, they were the ones to take benefits
Banks and individuals did reduce Greek exposure.
The debt is now held by various EuroZone entities, ECB, EFSF, Bank Clearing system, and IMF.
All of that is just a transfer to all EU citizens directly, rather than having to go through supporting defaulting banks that would have held it.
TBTF... It's so hard to go bankrupt these days... These mofos are trying so hard and they still can't officially go bust...
Russians, Germans, and Greeks kicking the can and waiting for the US to collapse.
A dangerous game when your adversary is willing to sacrifice his own people.
When your adversary uses false flag manipulation.
Tick-tock tick-tock...................
The BRICS bank wants to invest in Greek roads, bridges, and ports.
Just say YES.
A lot of trust had been rebuilt, but now that's off the table? For fucks sakes, the script writers for this shitshow are worse than The Walking Dead.
The girls at the WH are working the problem.
How to piss off Vlad without looking like a bitch.
when he says no one can see how the greek plan can work is because they are looking at money today instead of money tomorrow the bond market notwithstanding. pretty soon greece can offer bonds at 100% and no one will buy them and all the "investors" not willing to get a haircut today will get their heads chopped off tomorrow.
don't know what to do with all these greek bonds now
When can I buy some BRICS bonds?????
https://www.youtube.com/watch?v=HilVFpvzuBM
TP for my bunghole?
Germany should wrap up the entire country of Greece into a 'AAA' 95% leveraged high-yield ABS REIT for the Goldman boys to God-work the phones! The Greeks will get the first right-of-refusal to lease their property back!
"Doesn't know what to do with Greece now"
Or Spain, or Italy, or any of it.
I feel a small sympathy for the clusterfuck these characters have inherited.
"I feel a small sympathy for the clusterfuck these characters have inherited. "
INHERITED???!
For fuck's sake: these assholes INVENTED it.
It served them damned well while they were aggregating power with easy money and unsustainable socialist public dispensations and now they discover that what they have aggregated power over is unsustainable they are screaming.
They knew exactly what the hell they were doing when they engineered a boom with a combo of cheap money and fraudulent accounting.
Now they don't want to face the bust caused precisely by the boom in cheap money and reality imposing itself on cash flows and tax receipts despite the fraudulent accounting.
The individual people currently in the seats did not, themselves, personally, all invent the EU. Some of them inherited it.
As Victoria Nuland says, "fuck the EU"
People investing in Greek debt after the last crisis surely must have known default was a risk they were taking. People giving their money to institutions that decided to hold Greek debt should have understood the risk that they were taking. If Greece defaults at this point, nobody affected should have any basis to complain, it was a risk they decided to take. If they don't want a default then it is up to them to negotiate with Greece to preserve some part of their investment, debtor to creditor. Governments shouldn't be involved and more government intervention will only lead to more government intervention.
But, but, they always bail them out! And then when they do, I make lots of money. That's how infesting works, right?
“That means that all of the confidence was destroyed again.”
What does he mean by again? The ECB buying Greek bonds through proxy last summer just to show the "markets" that the systematic impoverishment of Greece is working?
Fuck you, Schaeuble, push your cart down the road, no one is buying what you are selling here.
SCHAEUBLE SAYS DOESN'T KNOW WHAT TO DO WITH GREECE NOW, NEW GREEK GOVERNMENT HAS DESTROYED ALL THE TRUST THAT HAD BEEN REBUILT
Says the occupier. Oh, it is different this time, no Nazi Troops on the streets. This time Bankers have occupied Greece. Greece should never have been added to the EU, they did not meet financial requirements. Yet, Goldman Sachs lied and cheated Greece into the EU and Germany was all onboard with this lie. Why? Just look at what happened next. Greece, a nation already in recession and holding debt, people in a degree of poverty, was added to the EU and more Bankers arrived at once. These guys had loans to peddle, loans for the Government to ramp up spending, loans for Greeks to ramp up consumption. Germany stood ready to export the things for the good life to Greece, and they did. A system of vendor financing was put in place. The EU Banks wrote loans, and EU [i.e Germany] began exporting en mass to a newly cash rich Greece. We all know how that ended!
Now Germany dares to act like THEY were taken in by this whole Greek borrowing binge? Fuck, the Germans lent much of this money in order to secure huge export markets for German business, now thye fucking complain Greece is in debt?
Well, this ended up just like Germany planned. Once Greece was lent enough money to hang themselves, and they did, Germany sends in a Troika of Bankers to force a sell off of all Greek public and state assets to EU and German elites, corporations and rich. Then when Greeks are forced into permanent debt slavery to EU banks, and Germans own all of Greeces public utilities, Islands, public lands, water suppliers, energy producers, even the fucking sewers, Germany can replace export to Greece with A PROGRAM OF PERMANENT RENT SEEKING. GREEKS PAY RENT FOR EVERYTHING AND PAY BANKS INTEREST FOREVER, WHILE LOSING ALL PUBLIC ASSETS.
A prefect outcome for Germany. Do you wonder why Greeks are unhappy with this whole process. I blame Greece for being suckered into the EU. They were played for fools by the smart Bankers, who now end up with everything, the Greece people with nothing.
"Fuck the EU" V. Nudelman
Varoufakis to Schaeuble"
"If we burn, you'll burn with us."
-- Mockingjay
Just seemed appropriate for this situation.
"If we burn, you'll burn with us."
If only more people felt that way. The tiny elite expect us to all burn, while they sit safely back and watch. It has already started in Ukraine, people die everyday, all in a battle the elite wages to get control of another nations assets and force their people to be debt slaves.
Unfortunately, only an Israeli government could say that to German banksters and mean it.
Still. Nice thought, I suppose.
So, who implodes first? Eurozone or Japan? Or the USA?
As fucked up as the US is, I think its the last to crumble if it ever does this time around. Every last penny/cent/yuan/yen will flood into America when the shit hits the fan in Europe, Japan, or China. All that binary has to go somewhere.
japan is or has burned first.
next, the eurozone. then,
what does it all collapse upon?
nothing, the corporate usa,
turned to straw. the mechanism
to accomplish globalism supreme
revealed as the joke dream it is.
what is left? i say silver and gold
and all that resonates in the heart
of people, survivors;
just a guess.
What's trust got to do with it.
A second hand emotion.
Sing it Tina...........
Flush the greek shit already !
Japan or Europe fails first? Like watching paint dry.
Greece is a basket case, Ireland's in a basket. No one better to explain the idiocy of the Irish euro preference than my favorite, Irish, angry economist, David McWilliams.
http://www.davidmcwilliams.ie/2015/03/16/auf-wiedersehen-never
But why indeed will the Irish be the very last to throw the euro out?
>> So who benefits? Clearly those people who are well paid in euro, but could never generate this income and this lifestyle if they had to earn it in the competitive marketplace where they export and compete for their services against the best elsewhere.
Who might these people be? Why, the very senior civil servants who pay themselves excessively in a currency they could never hope to earn.<<
Maybe, it's the same in Greece, if not everywhere else.
Greeks love fist-fucking - ask Joey Dimon
The only constant factor in this crisis (...beside German electors naivity and altruism...) is Greece. They fullfilled all expectations from the very beginning.
In this point Varoufakis is absolutely right when he explained the game again.
Wolfgang. Seriously though. What's your plan B? If the debt can't be paid it won't be. Short of violent regime change and having whatever replaces Syriza charge Greeks of taxpaying age a king's ransom for an exit visa and impose austerity a la 1980s Romania for ten more years at least, you've got exactly nothing.
Greeks just won't pay it otherwise. Anybody in a position to do so will emigrate first. Everyone else will stop reproducing rather than have children they can't feed and with no future but debt-peonage, or quite literally commit suicide.
Or is abolishing the Greek people and replacing it with something more to your liking the whole point? I suppose the scum of Karachi can staff all-inclusive hotels as well as anyone.
Eventually, you are going to have to explain why CDU and SPD-led governments both allowed German banks to lend the life savings of Germans to Greek kleptocrats who used their government as co-signer for loans they had no intention of paying back. What are you waiting for, Wolfgang? Let's hear it.
"Eventually, you are going to have to explain why CDU and SPD-led governments both allowed German banks to lend the life savings of Germans to Greek kleptocrats who used their government as co-signer for loans they had no intention of paying back."
Ah yes. That is the issue. But if the experience of Ireland is anything to go by accountability will get lost in a miasma of lawsuits, delays, changes in Government and "lost" financial records.
Well, to be fair, Fianna Fail presided over the entire housing boom period, and was knocked into third-party territory as punishment, much like Greece's PASOK. Its chances of forming government again in the near future are slight. Fine Gael (think New Democracy) hasn't held anybody genuinely accountable either, of course.
The only winner outside Frankfurt? Gerry fucking Adams, friend to murderers and rapists on both sides of the border, who will likely be the next leader of the opposition in Dail Eireann, trying to pass himself off as the next Alexis Tsipras, only without the youth and good looks. Imagine Die Linke if it were still being run by the likes of Egon Krenz or Erich Honecker (may he burn in hell for all eternity and Margot quickly join him) and you've got today's Sinn Fein.
"Was it for this" indeed.
Beannachtaí na Féile Pádraig oraibh. I'll spend it watching the Israeli election returns and praying the CIA and backstabbers in Mossad don't unseat Bibi. We need a country somewhere where the people's opinion counts for something.
Did the Germans trust them? I thought they invaded and killed them.
Germany isn't even a Country anymore, they're a mutual credit card company for the EU, a "non-state" and just don't know it.
Its a more civilised China, its vendor financing to keep the sheeple in work.
Why should I care if some banksters make money on their loans?
Greece is in for some bad times anyway, extra loans will not help that.
Dax hits new all time historic high as it smashes through 12000 to 12220 LOL NO FEAR ANYWHERE
Hey Mr.scheuble, you probably need to find a solution to the Greek problem because your're going to get a couple of replays shortly when the French voters elect for Marine Le Len and the Italians elect for Beppe Grillo.
If the thought of that gives you a few sleepless nights then perhaps you should start by STAYING THE FUCK OUT OF GREECE.
20 % yield, 3 yr.? fantastic.
who will cover the default?
fantastic. jon corzine?
fantastic.
now we are talking, fantastic.
the greeks bought the bonds themselves?
fantastic.
.
never mind covering loans from the german
and french banks, bailout the greek investors
at 20% with your next credit extension and what
might that do to the euro"?
"genius, genius, genius." mr. p.
I suppose at this point, with such openly disingenuous parties on all sides, the most appropriate next move would be for Greece to borrow as much as it possibly can from EU and Germany, then unilaterally declare that Greece forgives 100% of German war reparations in exchange for cancelation of 100% of their debts. And add that any EU lender to Greece is welcome to collect the rest of their payments from Germany.
What a joke the EU is.
-----
I suppose I should add the following. I have a fairly positive impression of German people, but sadly their government seems to have gone full retard and full wacko, probably in a misguided effort to emulate or mollify the USSA.
Never confuse individuals with the predators who claim to be their fictional government... even though a sadly huge number of individuals sanction and support the predators.
https://www.youtube.com/watch?v=Zvl9N9GdraQ
.
Financial "Crisis" in Greece
.
it never gets old bro.
.
Everywhere Chinese People
https://www.youtube.com/watch?v=Mf5mjP_Kzcw
Here is how this is going to work -
Greece will default on all debt held by the big EU banks. This will trip the massive derivatives market - the German taxpayers will cover the losses in European banks and the Fed will cover the losses in US banks.