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Europe's Haves & Have-Nots: Greek Bulls "Throw In The Towel... They've Gone Plain Nuts"

Tyler Durden's picture




 

Things are not going well for the Greeks. Bond yields are at post-default highs, implicitly shutting them out of the capital markets; stocks are cratering; and deposit outflows continue as the cash crunch looms. Even ex-Goldman silver-lining-finder Erik Nielsen stated this weekend that he is "throwing in the towel," on Greece, adding, as Bloomberg reports, that things have gone "plain nuts" in Athens. However, things are going great for the Germans - borrowing costs have never been lower, and the stock market is at record-er highs every day, as Draghi's money-printing fiasco has succeeded in one thing (and one thing only) dividing an already fragile 'union' into ever-greater 'haves' and ever-lesser 'have-nots'.

 

Until Sunday, Erik Nielsen (who previously worked at the International Monetary Fund and Goldman Sachs Group Inc.) had sounded more confident that Greece would remain in the 19-nation currency bloc. Just last month, he said the government had surrendered to “reality” in agreeing to concessions keep the bailout on track. In January, he said fumbled negotiations and the loss of outside support was “no more than a tail-end risk.” As Bloomberg reports, in January, he said fumbled negotiations and the loss of outside support was “no more than a tail-end risk.” But no more...

“I am throwing in the towel,” Nielsen wrote in his “Sunday Wrap” report. “If they don’t want to play by the rules (and the past weeks give me little hope,) they should get ready to leave!”

 

“And please appreciate what a difficult conclusion that is to draw for a deeply committed European like myself,” said Nielsen.

 

The reason? Greek Prime Minister Alexis Tsipras’s call last week that Germany pay World War II reparations shows things have gone “plain nuts” in Athens. That, combined with what he called “blatant hypocrisy” and ignorance of the constraints facing the European Central Bank, shows all the parties need to brace for Greece’s exit from the euro.

 

Tsipras is facing the choice of either signing up to economic policies demanded in return for aid or accepting life outside the euro area and “virtually certain collapse” of the economy, according to Nielsen.

 

“If the Greek government does not want the first option, it should prepare for the second option so that the exit becomes as orderly as possible,” he said, proposing the choice of reform or rupture be put to the electorate.

*  *  *
And it appears that the rest of the market feels that way too..

Bond yields surging and curve inverting...

Stocks plunging...

Bank bonds getting crushed... (as prices collapse into the 60s)

And what has Draghi's insanity achieved...

Growing the divide...

*  *  *
We leave it to Mr. Nielsen to conclude...

“I still hold hope that sanity returns to Greek politics,” said Nielsen.

 

“But if not, the rest of Europe needs to draw a line in the sand, and the Greek government should draw the conclusion, ask the people, and make the necessary preparations.”

*  *  *

 

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Tue, 03/17/2015 - 21:23 | 5900512 kliguy38
kliguy38's picture

Its all ok don't worry about it......granny's got yo back....what's the worst that could happen

Tue, 03/17/2015 - 21:30 | 5900535 nmewn
nmewn's picture

The worst that could happen is government pensions don't get "funded" by ever moar debt, meaning, the sky is the limit!

Crony-socialists never run out of other peoples money to spend, they just run out of time ;-)

Tue, 03/17/2015 - 21:38 | 5900553 Self-enslavement
Self-enslavement's picture

Exchanging worthless pieces of paper for real weath. That's not parasitic at all...

Tue, 03/17/2015 - 21:45 | 5900583 nmewn
nmewn's picture

Thanks for the correction, I was having trouble understanding if you meant weather or whether...lol.

Wealth is not defined by worthless pieces of paper in a box, its incorporating law into what one accumulated with those worthless pieces of paper.

Without the state & its "law" there can be no wealth, law is worthless paper as well...without force.

You're learning ;-)

Tue, 03/17/2015 - 22:46 | 5900746 Self-enslavement
Self-enslavement's picture

So... There are laws against we the people (working class) accumulating wealth, but there are absolutely no laws against the criminal wealthy parasitic class from printing themselves unlimited paper and exchanging it for all of OUR wealth...

Nice scam you have going!

Wed, 03/18/2015 - 06:34 | 5901245 Handful of Dust
Handful of Dust's picture

It's Jeagermeister time!

Wed, 03/18/2015 - 06:46 | 5901261 nmewn
nmewn's picture

An accusation made without any proof whatsoever redounds to the accuser themself (that would be you). The other night you didn't have a problem with government printing presses, you just had a problem with the ones running them, it seems you still do and can't see the forest for the trees in the danger of the printing press itself and the law that permits it.

Governments world wide are pretty much the same, they make laws to benefit them, those in government and their cronies.

I said it once (and I'll repeat it again in a different way that perhaps you or any other idiot can understand)...without the FORCE of law, there is no law.

Has Corzine been arrested, is not theft still illegal? Has Holder been arrested, is not arms smuggling illegal? What about Buffet, because a cheaper, safer way to transport oil is blocked by government, is this not prima facie evidence of collusion and cronyism after he financially supported the one blocking for his interests?

Laws are written on pieces of paper...how much value does paper have?

Put another way, if a law were passed tomorrow saying no one is allowed over 100k in assets, would you support it, if not, why not and where would the excess assets go?

It would be law wouldn't it or would it be theft, grasshopper? ;-)

Tue, 03/17/2015 - 21:43 | 5900577 kliguy38
kliguy38's picture

I remember a buddy of mine that bought JDSU in 2000 after it fell from about 130 to 90 and he went all in.......about 150K.........he said......Whats the worst that could happen???? I told him it could go to zero and he laughed

Wed, 03/18/2015 - 04:32 | 5901166 the tower
the tower's picture

... and crony-capitalists just print more money so they can have the socialists spend it, with interest... who's worse?

By the way, pensions are dead the world over. The current generation of pensoners will be the last one that receives a full pension, or even a pension period.

Wed, 03/18/2015 - 06:39 | 5901247 Handful of Dust
Handful of Dust's picture

You're thinking is too old-fashioned, if I may be so bold. These days they will cry loud, occupy State Capitol buildings, jam traffic laying in the streets, bus in protesters, and union pensioners and gubmint employees will get their Bailout.

Make no mistake about it.

 

Please re-read, "When Money Dies" by Adam Ferguson about what happened to union employees and gubmint workers in that hyperinflationary epoch; they faired much better then most.

Tue, 03/17/2015 - 21:47 | 5900590 sam i am
sam i am's picture
IMF Violated Its Own Charter with War-Fighting Loan for Ukraine

The whole package is a scam

 

http://russia-insider.com/en/2015/03/16/4531

 

However, if Russia gets nought ... then it means that all other IMF debts with all other countries around the world become non enforceable ... eg Venezuela, walks away ... as if Ukraine does not have to pay, then neither does any other country !!
-
Russia has set the loan up so, it either springs around the world leaving the IMF (controlled by America) is even more Debt; that Russia has to be paid back in Full and other Creditors have to take a Haircut; or Ukraine Defaults and Russia seizes assets as has 1st refusal !!
-
Take you pick ... besides the West has told the world "how bad the Russian Economy is", So Russia "needs" that Money from Ukraine NOW !!
-

Tue, 03/17/2015 - 23:29 | 5900855 TNTARG
TNTARG's picture
The purposes of the International Monetary Fund are to: • promote international monetary cooperation; • facilitate the expansion and balanced growth of international trade; • promote exchange stability; • assist in the establishment of a multilateral system of payments; and • make resources available (with adequate safeguards) to members experiencing balance of payments difficulties.

Either it has dramatically failed or the chart never said what the real purposes were and are.

There are hundreds of this kind of statements:
""IMF admits: we failed to realise the damage austerity would do to Greece"

(IMF chief Christine Lagarde. Greek media recently quoted IMF her describing 2011 as a 'lost year', partly because of miscalculations by the EU and IMF).

http://www.theguardian.com/business/2013/jun/05/imf-underestimated-damag...

 

"World Bank and IMF support to dictatorships"

Contrary to section 10 of article 4 of the World Bank charter, the latter and the IMF have systematically lent to States in order to influence their policies. The examples given in this study show that the political and strategic interests of the major capitalist powers are determining factors. Regimes with the backing of major capitalist powers have received financial aid even though their economic policies did not meet official International Financial Institution (IFI) criteria or they failed to respect human rights. Furthermore, regimes seen as hostile to the major powers were deprived of IFI loans on the pretext that they were failing to respect the economic criteria set by these institutions. These policies of the Bretton Woods institutions, far from being abandoned at the end of the Cold War, continue to the present day.

http://www.internationalviewpoint.org/spip.php?article3627

And so on and so on and so on.

Tue, 03/17/2015 - 21:35 | 5900550 LetThemEatRand
LetThemEatRand's picture

Funny how the MSM went from "Greece will never leave the Euro," to "Greece should leave the Euro."  Greece must be doing something right.

Tue, 03/17/2015 - 23:30 | 5900857 iceCube
iceCube's picture

Armchair strategist. Yes, they are doing something right, that banana republic is bankrupt. Great achievement indeed.

Tue, 03/17/2015 - 21:39 | 5900558 Self-enslavement
Self-enslavement's picture

Looks like Socialism for the Rich is going down the drain.

Wed, 03/18/2015 - 01:20 | 5901045 Which is worse ...
Which is worse - bankers or terrorists's picture

To paraphase Thatcher: "The problem with Socialism for the Rich is you run out of other people's money". 

There Margaret, fixed it for ya.  

Tue, 03/17/2015 - 21:40 | 5900560 StopBeingParanoid
StopBeingParanoid's picture

There's an "easy" way out of debt problem: one-off overnight bank account forceful withdrawals by the government, Cyprus-style. The day after the government will have to resign and Greek citizens will surely be very upset, but they could solve so many problems at once... in sparse order:

- Cut a substantial portion of debt.

- Show the market you're serious about solving problems.

- Yields instantly drop, because of the former two effects.

- After all this, the Germans and the other creditors will be more prone to accomodate.

In order to solve Greek problems you have to ask a sacrifice to Greek citizens first, everyone else comes afterwards.

- - - - - - - - - - - - 

Dear Greek brothers,

the whole union will cover your back if you just show you regained sanity.

Sincerely,

a European

Tue, 03/17/2015 - 21:55 | 5900613 LetThemEatRand
LetThemEatRand's picture

Sanity would be the Greeks hanging the Germans and the Rothschilds from the Parthenon.

Wed, 03/18/2015 - 01:17 | 5901039 walküre
walküre's picture

No. Sanity would be that Germany forces Greece to surrender collateral for the loans and if necessary put boots on the ground.

WTF - Germany is supposed to pay, pay and pay again and again. Might as well go all in and take what we can.

What difference does it make at this point? What's good for the goose (USA) is good for the gander.

Wed, 03/18/2015 - 02:40 | 5901105 TIMBEEER
TIMBEEER's picture

But if they hang the Germans, then whom will they blame next time? Look at Greek history, that nation has always been running gigantic deficites and defaulting.

Tue, 03/17/2015 - 22:00 | 5900622 NoPension
NoPension's picture

Don't know many Greeks, eh?

Nice folks, the ones I know. But to say they are fucking hardheaded is an understatement.
I had one, who was GC'ing his own building. With zero experience. I offered to handle it for like 3% of his cost. I was working adjacent property. Peice of cake. He mutha- fucked me for trying to hose him.
Then he proceeded to ask me every conceivable question, and then some. For free. Not even a tip.
And then do the EXACT opposite of everything I told him. What a cluster fuck. What an idiot. If you paid me to screw it up, I could not have been more creative.

He lost it all. Business. House. Cash. All.

The saddest part is, I was sent in to buy his project while it was laying on the ground. Combine it, more economicly with ours, and give him all the space he needed for his business as part of the deal.
He told me to fuck off, with a big Greek smile. A very nice guy.

Greeks.

Tue, 03/17/2015 - 21:51 | 5900599 exartizo
exartizo's picture

Tsipras and Varoufakis:

...just take the money Moscow is offering, dump the EU, forget the debt you owe them and get your economy back on track.

Wed, 03/18/2015 - 00:28 | 5900985 DeadFred
DeadFred's picture

Take the Russian money, repudiate the old debts and STAY in the EU. Let the EU kick them out, more drame that way.

Wed, 03/18/2015 - 02:42 | 5901107 TIMBEEER
TIMBEEER's picture

China is not stupid enought to play the Greek Game. Moscow .. I think they won't be that stupid, either. So the next rescuer (China? Russia?) is going to get the blame for austerity and debt (We didn't want the debt, you gave it to us although you knew we were bankrupt..')?

I think the game is over now.

Tue, 03/17/2015 - 22:02 | 5900628 monger
monger's picture

Exactly. What biological moron missed the inconsistency here? Tsipras going to Moscow as written a few hours ago (why would he be going assholes, but for money?), but they have no money honey? the hypocritticism is getting shit deep.

Tue, 03/17/2015 - 22:13 | 5900663 dsty
dsty's picture

perhaps there is an indentured servant deal in the works.

Tue, 03/17/2015 - 23:45 | 5900902 worbsid
worbsid's picture

Russia would probably want a port to replace their Syrian port just in case. 

Tue, 03/17/2015 - 22:12 | 5900654 nicxios
nicxios's picture

Ex-Goldman Sachs bloodsucker throwing in the towel? Maybe those crazy Greeks are doing something right after all.

Fuck Goldman, fuck Nielsen and fuck "commited Europeans" like himself.

Tue, 03/17/2015 - 22:19 | 5900685 HeavydutyMexica...
Tue, 03/17/2015 - 22:44 | 5900745 TNTARG
TNTARG's picture

Out of the Euro, Greece...

Wed, 03/18/2015 - 00:05 | 5900955 q99x2
q99x2's picture

Is Greece going to default?

Wed, 03/18/2015 - 00:49 | 5901008 hairball48
hairball48's picture

The Greeks can 1)stay in the Euro and be debt slaves to the Germans forever, or 2)Default and go back to the Drachma. Bringing back the Drachma will be extremely painful in the short/medium term. "Selling" that choice to the Greek people is the challenge for the Greek pols...and it'll be a very difficult sell imo. Probably impossible because the average Greek doesn't have a clue about just how deep the shithole they find themselves in, really is.

I'm in the camp that if the Greeks get a "loan", it'll be China to the rescue, not Russia. Russia has it's hands full in Ukraine. But then China might have its "hard landing" come sooner rather than later and then the Greeks might be truly fucked.

America's version of "Greece" is coming soon. We have consumed more than we have produced for far too long, borrowing from the future an amount that can never be repaid(in a currency of equal purchasin power). That insane borrowing will end imo.

Clyde the Raven thinks so too. https://www.youtube.com/watch?v=GlJA38A8HSc

hairball

Wed, 03/18/2015 - 01:18 | 5901040 Joe A
Joe A's picture

Play by the rules? Whose rules? IMFs? Their rule is for countries to role over and submit to subjugation.

And capitalism in Europe didn't play by the rules: you make bad investments? you take the losses and no bailout for banks and institution that made bad investment decisions.

Wed, 03/18/2015 - 01:25 | 5901048 walküre
walküre's picture

Greeks had my sympathy until they started asking for reparations.

Fuck you, Greece and everyone else that is trying to go after Germany for events that happened 70 years ago.

I AM NOT FUCKING RESPONSIBLE. MY KIDS ARE NOT FUCKING RESPONSIBLE.

IT HAS TO STOP. THE WAR ENDED 1945.

Otherwise, let's open up this whole chapter and dig really deep to figure out what really happened and who was really pulling the strings and pushing the buttons! (6 million victims anyone? who was counting?)

Don't care what the loan details allegedly were. Don't care how many people got shot there and anywhere else.

I don't give a fuck. It is not my problem. It was not my war. But keep poking and we may go for another round of kicking shit.

Wed, 03/18/2015 - 02:24 | 5901095 GoldenDonuts
GoldenDonuts's picture

You are right it was not your war.  How could it be you were not born.   Your county however asked for and received massive debt forgiveness in 1953(?).   So perhaps German banks can admit their mistake in lending Greece the money and provide some debt forgivness now.   Or do the Greeks have to elect a group of Nazis (golden dawn) start a war and kill a few million people in order to receive some debt forgivness.

Wed, 03/18/2015 - 05:33 | 5901197 dag
dag's picture

Who forced the "naive," greedy Greeks to accept the loans?

Who made Greece accept the responsibility of Olympics? 

 

Wed, 03/18/2015 - 13:07 | 5902604 walküre
walküre's picture

Debt forgiveness? 67% of that debt is owed to German banks or Germany.. who knows anymore?

Yeah, it gets written off alright. We know that already. We're on the hook because our politicians are stoopid and corrupt. Same as yours.

Just let us swallow the medicine now and cut Greece off further funding.

How was Greece able to fork out 588 million Euros two days ago to the Rothschild's IMF? Was that a tranche from a German bailout account?

What a fucking reach around this all is. Do you notice how shit always flows on top? Who is always coming out on top of the shitpile? Who owns NY, London, Frankfurt and DC and who rules in global politics? Jewish money, that's who.

Wed, 03/18/2015 - 06:17 | 5901226 mog
mog's picture

So you are f**** responsible for paying out untold billions to jews - including the latest donation of what can be nuclear capable subs.

No onjection to them bleeding you dry. You happy happy with that no complaints.

But you have objections to paying Greece reparations for devastating its country and murdering probably hundreds of thousands of its people.

You pay out - hundreds of billions in blood money to jews but looking the other way for political reasons, Germany allowed Goldman Sachs to lie Greece into the Euro Zone and Gaermany has bled it and other nations like it ever since.

Germany owes much of Europe reparations for the rampage of the Third Reich and its owes much to Europe for the rampage of the Fourth Reich - aka EUSSR

Live with it and pay.

I and many others are fed up with the militancy and greed of Germany who has attacked other European states ruthlessly and repeatedly including two world wars and by economics.

The Germans slaughtered the Greeks not least by ruthless mass executions.

You and yours did it - and its your responsibility.

Pay.

Good enough to fund zion and all its evils, good enough for Greece.

Who fought fearlessly for the allied cause and died in droves.

Wed, 03/18/2015 - 06:46 | 5901259 Handful of Dust
Handful of Dust's picture

Did Japan ever pay all those Asian countries reparation for pillaging?

Wed, 03/18/2015 - 13:01 | 5902585 walküre
walküre's picture

What's your background? I'm sure there are skeletons in your nation's closet.

FUCK RIGHT OFF

Wed, 03/18/2015 - 08:22 | 5901461 nicxios
nicxios's picture

You should focus on the German gov't. Did they make the debt issue a morality play? That opens the door to this.

Wed, 03/18/2015 - 05:22 | 5901189 Anglo Hondo
Anglo Hondo's picture

Nielsen says he is a committed European.  No no no.  He's an asshole.

He is a committed European UNIONIST.  And he should be committed to a mental institution.

Wed, 03/18/2015 - 06:38 | 5901249 mog
mog's picture

Those of you on here who are so strongly against the Greeks and their right to reparations should give some thought to what Germany has been about.

She has stuffed Greece indirectly.

And Greece was an allied nation which was ravaged by Germany and its people were murdered and executed in cold blood - tens of thousands if not hundreds of thousands.

Wake up.

Just as Germany was quietly responsible for the break up of Yugoslavia and getting its revenge against allied Serbia - this is a cold blooded act of revenge against Greece.

Germany is still fighting WW2.

Germany has funded Israel.  Funded Zion  Funded the Jews to the tune of hundreds of billions.

No complaint from many of you on that one apparently. Or didn't you know?

Just GIVEN them subs whuch can be made nuclear capable and threaten the planet.

Given to Israel and Germany is selling them a fleet at knock down prices - no objections there I see.

Here is a list of links if you don't believe me.

Better subs than the Germans have themselves.

https://www.google.com/search?q=germany+gives+israel+subs&ie=utf-8&oe=utf-8

Germany has been a warlike menace for 150 years . World wars and the ravage of Europe twice.

Mass murder across the continent twice.

Now it is arming Israel - having paid out billions to zion already - it is aiding and abetting Israel to ravage the planet.

Merkel is an east German technocrat and has her own agenda.

Greece should get reparations if only to stop the money being swallowed by the Israeli military complex.

I cannot believe how many on here want to see Israel being increasingly made nuclear capable, capable of threatening destruction on every country on the planet by nuclear missile  by the Germans and yet attack Greece for wanting a fair go.

The power of propaganda at work.

Just as it was with the demonisation of Serbia.

Wed, 03/18/2015 - 13:02 | 5902587 walküre
walküre's picture

FUCK OFF

Germany didn't start the war. Fucker.

Wed, 03/18/2015 - 07:50 | 5901389 Mitch Comestein
Mitch Comestein's picture

Well I bought some GREK the other day after the 13th day in a row their market was down.  Anyone else?

Wed, 03/18/2015 - 07:51 | 5901391 nathan1234
nathan1234's picture

It's always the case of Lender beware.

If the Lender chooses a wrong Borrowe front run by Goldman, then it's their problems. They should have got the guarantees from Goldman.

So fcuk Goldman not Greece. 

Wed, 03/18/2015 - 09:03 | 5901575 nixy
nixy's picture

Lets just get this quite straight.

There is no 'Germany' ------ there is no 'Greece'

There are people and there are bankers.

That's it.

Wed, 03/18/2015 - 09:22 | 5901640 Mike Honcho
Mike Honcho's picture

I know this looks bad, just call Paul Krugglesworth for a full explaination on how this looks good.

Wed, 03/18/2015 - 11:32 | 5902205 B.J. Worthy
B.J. Worthy's picture

You can't spell Drachma without drama.

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