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Grexit Contagion Resumes After IMF Slams "Most Unhelpful Client Ever"
Draghi, we have a problem. Despite the omnipotent buying power of the all-knowing ECB, peripheral European bond spreads are blowing out again (and stocks dropping) as Grexit fears start to spread contagiously across the continent. As Greece's cash crunch looms ever closer (with capital controls looming) and bulls "throw in the towel" on the "nuts" Greeks, the IMF has come out and rubbed Mediterranean salt into that wound by telling the Eurogroup that Greece is the most unhelpful country the organization has dealt with in its 70-year history. As Bloomberg reports, in a short and bad-tempered conference call on Tuesday, officials from the 'Troika' complained that Greek officials aren’t adhering to a bailout extension deal leaving Dijsselbloem hinting at Cypriot templates for Greece.
The 'Troika' is not happy... International Monetary Fund officials told their euro-area colleagues that Greece is the most unhelpful country the organization has dealt with in its 70-year history, according to two people familiar with the talks. As Bloomberg reports,
In a short and bad-tempered conference call on Tuesday, officials from the IMF, the European Central Bank and the European Commission complained that Greek officials aren’t adhering to a bailout extension deal reached in February or cooperating with creditors, said the people, who asked not to be identified because the call was private.
German finance officials said trying to persuade the Greek government to draw up a rigorous economic policy program is like riding a dead horse, the people said, while the IMF team said Greece’s attitude to its official creditors was unacceptable. The German Finance Ministry didn’t respond to multiple requests seeking comment.
Concern is growing among officials that the recalcitrance of Prime Minister Alexis Tsipras’s government may end up forcing Greece out of the euro, as the cash-strapped country refuses to take the action needed to trigger more financial support. Tsipras is pinning his hopes for a breakthrough on a meeting with ECB President Mario Draghi, German Chancellor Angela Merkel, French President Francois Hollande and European Commission head Jean-Claude Juncker this week in Brussels.
...
Euro-region finance ministers are urging Greece to draw up a plan to fix the economy in exchange for emergency loans to keep the country afloat. As Tsipras challenges his creditors to blink first, his government’s money is running out, raising the prospect of a cash crunch as early as this month. The country faces more than 2 billion euros in debt payments Friday, and government salaries and pensions must be at the end of March.
...
The call with euro-area finance officials came after the group’s chairman, Dutch Finance Minister Jeroen Dijsselbloem, said the country could use capital controls to remain in the currency union.
“It’s been explored what should happen if a country gets into deep trouble -- that doesn’t immediately have to be an exit scenario,” Dijsselbloem told BNR Nieuwsradio. For the 2013 Cypriot bailout, “we had to take radical measures, banks were closed for a while and capital flows within and out of the country were tied to all kinds of conditions, but you can think of all kinds of scenarios.”
* * *
As JPMorgan notes, Greece risks capital controls as it seems unlikely tomorrow’s meetings will solve the nation’s cash crunch. Their base case remains that Greece and the region will find a way to reach an agreement by end June, although the possibility of a “frozen conflict” scenario is growing. In the absence of external support, Greek authorities would likely continue to run up arrears to their suppliers and go into arrears on their payments to the IMF.
Although visibility on the exact liquidity position is low, reports continue to suggest that the Greek authorities’ ability to continue to meet their liabilities is measured in weeks. Indeed, the Greek authorities' plan to allow tax debts to be paid in instalments appears to have been partly designed to encourage payments by the end of March. Despite the intensity of the cash flow pressure, we continue to think that Greece looking to the ECB for a solution via greater T-Bill issuance is simply not going to work. With Draghi having stated that such action would violate the prohibition on monetary financing, that route is effectively closed, and we are surprised that Tsipras continues to pursue it.
So where does this leave us? Our base case has been (and remains) that Greece and the region would find a way to work together and reach an agreement by end June. But the possibility of a “frozen conflict” scenario is growing. That runs as follows. In the absence of new external support, the Greek authorities will likely continue to run up arrears to their suppliers and go into arrears on their payments to the IMF. Our best guess is that, in conjunction with a broader sense that negotiations with the Eurogroup are very difficult, this would trigger renewed deposit outflows and the imposition of capital controls. With capital controls in place and Greece not making payments to either the IMF or the ECB, we could imagine a “frozen conflict” persisting for a number of months. During this perio,d discussions between Greece and the region would continue, but the economy would be hit by intensified uncertainty and the limitations on the ability of the banking system to function. An accommodation between Greece and the rest of the region may then be found. Alternatively, with growth weak and the primary position going into deficit, domestic political pressures within Greece would likely take us toward either a referendum on continued Eurozone membership or new elections.
Even Commissioner Moscovici has stated that the region will not act to keep Greece in the Eurozone “at any price”.
* * *
This is not supposed to happen... Grexit fears spreading across the PIIGS... in bonds...
and stocks (Spanish and Italian stocks practically unch, Greece monkey-hammered)
So much for ECB QE compressing risk premia...
Charts: Bloomberg
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paging Mr Lagarde and Mr Yellen...
When you cant pay, you cant pay. More loans won't help.
"More loans won't help."
That's YOUR opinion. There's a lot of PhD-level economists and financiers who would disagree with you. Mostly because they're paid to disagree with you, not because you aren't right.
One of the funniest slam-downs I ever received on this board went something like this: You doctor yet? Call me when you doctor.
"Client"?
WTF
not being "helpful" to these scumsucking assholes????
Now that's pretty fucking funny.
Guess the Greeks can't afford the lube for their bungholes.
Must borrow moar.
You know-- like that maid wasn't "helpful" to DSK in that NY hotel room a while back...
Obviously hitting a nerve with these guys. So what is the "big picture" outcome TPB are looking for (not just to rob Greece)? I'm thinking to kill off the social services within EU. Perhaps back to that wonderful post-war hand to mouth existence. Special note to the ECB: since you're probably big on confiscations, I heard this Red Shield Bank has a couple trillion sitting around. That'd square some balance sheets in a hurry. There's also a Mrs. E. Windsor who can donate a few billions and some tacky purses to help the cause.
PHD level economists ? More likely con men with a fake PHD . Economics
is related to Religion , Theology , Astrology , Sociology , Psychology .......all BLS good for nothing . The predictions of those jokers with a PHD in economics Never materialize . Read about "debunking economics "
http://www.debtdeflation.com/blogs/debunking-economics/
Well, sociology has predicted a lot of the stuff that has happened since the '90s but of course, it is not taken into account.
You don't have to be doctor to dig a grave.
You know what sucks? When the victim-client will not put the noose on himself.. I hate that you have to put the noose on, pull down the hood ( in case his eyes pop out) pull the lever and all that hassle, why won't he cooperate, sooo selfish....
"Liquidity liquidity everywhere, and not a drop to drink."
'FUCK YOU, PAY ME'
Hahahaha! Who didn't see this coming?
This will end well. You got the IMF running a huge global scam with its "clients" and you got the Greeks who agree to the rules of the game but decide not to follow them anyway. What could possibly go wrong?
Going down baby!!!!!!!!!!!!!!!!!
This is like loaning a drunk some Munny and then exp3cting him not to spend any of it on booze!
IMF = vitriolic master
"Client", that's rich..
substitute "bitch" for "client".
at this point, its just sooooo funny.
What Act are we in...did I miss the intermission? I love a good Greek Tragedy!
OT:
Regime change in Tunisia under way. Looks like Greece pivots east so effort to landlock Russia continues.
Hoping that US taxpayers have super deep pockets.
May the pox consume them all.
Greece, Germany , and the rest of Europe should side with Russia and China to finally put the old, rabid dog US out of commission for good along with all it's contrivances like the IMF, World Bank, NATO, UN, etc.
The world is too polluted. Peeling back the layers of bullshit will be painful.
I am really hoping Greece cuts a nice fat deal with Russia. Financing for Greece, and a nice Island/ Port for the Russian Med Fleet.
Jonesy many EMU countries have already cut deals to join including the brits, France, and Germany. Many more will follow and many of our allies in the Far East are already members.
Many here predicted an alternate systems and the USA was not invited to join.
The next Lehman moment is coming. This should be fun... not.
If nothing dramatic occurs over the next week and a half....this baby should hang on until the fall at least. Nothing to back up this claim...just a gut feel.
Pick up a bottle of kaopectate, and it will soon pass.
Lehman had no meaning as a house is as over valued now as it was then and none of the Lehman assets went to the bankruptcy court until there is a fall that this happens there can only be another fall coming.
Fake inflation economy cant fly very long.
Goddamnit, be a good nigga... says the master [IMF] to the slave [Greece}...
Knowledge makes a man unfit to be a slave.
– Frederick Douglass
ECB MAKES IT CLEAR: "OUR JOB IS TO MAKE SURE GREECE BECOMES TURKEY"
After repeatedly missing its target of helping the European economy grow, the ECB decided to focus on attainable targets: "Destroying Greece´s economy will be the first ECB success in 10 years".
European officials are hopeful that Greece will become Turkey, before Turkey becomes Greece.
Source: www.financialpaparazzi.com
Why shoudl the Greek government stick to medieval rules that condemn to pay forever a debt impossible to pay ? The TROIKA are Idiots . To solve a debt problem of a nation they give them more debt !!!!!!!! ah, ah, ah, Insane idiots ....... you need to see a shrink ASAP
The debt is given so that they may make interest (USURY) payments to the parasites (bankers)
Big Party on 3-20-2015!
The World is About to Experience a Once in the History of the Universe Event and the Prophecy Implications are STAGGERING!http://beforeitsnews.com/prophecy/2015/03/the-world-is-about-to-experien...
My personal astrologer read my chart, conferred with the spirits, and then interpreted my tea leaves this morning and they all indicated that you, and your linked website, are full of shit.
Before its news is a clearinghouse for out there predictions. But this one might be true because Benjamin Fulford said so.... and ironically enough he has been kinda accurate with economic shit. Not the 1000's of ninja's killing my enemies from every shadow, but the whole china and russia creating their own clearing houses and the cabal being cut out of world reserve currency stuff. EG, development bank, gold fixing
Also, if you ever want to talk about big things and point fingers, one of the easiest ways to do it without getting audited or nail gunned is to make your self seem a little uncredible. A good example would be to slip shapshifting reptillians into your predictions when talking about the bad guys , instead of calling the beast by its true name.
The End Times for Bible prophecy is nigh! Then there will come a Thousand Years of Peace that will end on a Tuesday at 6:33 during a rare Blood Moon --during which time humanity wll completely forget there ever was such a thing.
Thank God.
I wonder why Greece is the "most un-helpful" country.
It's probably because they realise that you manage to fuck up every time you "help".
"HELP" in your play book obviously means "to screw for the benefit of ourslves and our friends in high places"
He drinks because she scolds he thinks.
She thinks she scolds because he drinks.
But neither will admit what's true:
That he's a sot and she's a shrew.
"draw up a rigorous economic policy program is like riding a dead horse" ... or more like riding a trojan horse ... only problem is a trojan horse will be doing the riding, here's hoping all this time Greece was planning a proper subterfuge of milking creditors for all they're worth with no intention of paying back a cent while carefully structuring their euro exit, a man can dream
Or like riding a "Trojan"?
I suspect riding a dead horse is much easier than riding a live one, you just won't get very far on it.
that has been permenantly saved .. great analogy! thanks
Just another thought; would you help the hangman tighten the noose around your neck even if he promised you it would be more comfortable.
IMF is the Bill Cosby of the financial world
I love the way the Greeks have been toying wih that big fish, as they wear it out, back and forth, with truth and consequences, just to get it close enough to the boat to hit it over the head with a bat.
If Greece is kicked out of the EU won't the gov't in Greece collapse?
Getting away from the EU was the very reason they were voted into office in the first place. Didn't you get the memo?
Collapse??? They will my heros! Especially if they manage doing it through a double monetary system
Sorry dupe
fuck the imf and her man chin. they are amoral pirates...this is just ad hominem bile. that goes for the other ex - troika dangling members
Is there a difference between riding and beating a dead horse?
Damn cow doesn't produce any more milk. Most unhelpful client ever.