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German DAX Surges Over 12,000 On Greek Optimism, But The Money Has Run Out
Moments ago, the German DAX roared gingerly back over 12,000 dragging US equity futures alongside it, with the catalyst cited as the somewhat optimistic tone following the three hours of talks held late last night to try to break an impasse that risks sending Athens stumbling of the euro zone. As a result, a smiling if only through his teeth, Tsipras said Greece was "moving swiftly to meet creditors' demands for a detailed economic reform plan" and assured euro zone leaders his leftist-led coalition would speed up work to avert bankruptcy.
Still, nothing that happened last night actually unlocks any new money. Reuters reports that "while a joint statement by the EU institutions spoke of a "spirit of mutual trust" and Tsipras said he left feeling more optimistic, German Chancellor Angela Merkel stressed no money would be released before Athens implements budget measures and other reforms that it has so far been reluctant to accept."
The risk of a continued standoff, exactly a month after Greece secured a last-gasp four-month extension of an EU/IMF bailout, was highlighted by different descriptions by Tsipras and Merkel about what reforms Athens would need to launch.
"It is clear that Greece is not obliged to implement recessionary measures," the 40-year-old leftist premier told reporters, referring to previously agreed reforms. "Greece will submit its own structural reforms, which it will implement."
But Merkel, facing mounting resistance in Europe's richest state to continued lending to keep an erratic partner in the common currency area, insisted that only the full completion of already approved measures would satisfy the creditors.
"The reference point is the agreement of Feb. 20," she said. "We have not changed one iota. You may have heard some of this before. But then not much has happened in the last few weeks."
So once again, the market looks forward, this time to Monday when Tsipras will make a much anticipated visit to Merkel in Berlin, and where EU officials said that if Greece did come up with a convincing plan to get its debts under control, "euro zone finance ministers could meet soon to release at least some funds to help it meet pressing commitments in the coming weeks."
In Athens on Friday, government spokesman Gabriel Sakellaridis said: "Once the reforms are submitted, and in a detailed manner, to the Euro Group when that happens ... then the funding will be unlocked towards the Greek economy."
In other words, "this time the Greek promises of reforms are different" at least as far as the algos are concerned, even if we have all seen the same song and dance countless times before:
TSIPRAS SAYS GREECE WILL PRESENT AND IMPLEMENT REFORMS....and on to the bottom box pic.twitter.com/RzAoymGSS5
— GreekFire23 (@GreekFire23) March 20, 2015
But just to sweeten the pot and make sure those OTM calls the "unnamed official" had on the Dax lead to generous profits, moments ago Bloomberg also noted, the following:
- EUROGROUP COULD MEET AS EARLY AS MARCH 27 ON GREECE: OFFICIAL
- EUROGROUP COULD GIVE GREECE EU1.9B SMP PROFITS: OFFICIAL
- EUROGROUP COULD APPROVE GREEK AID PAYMENT IF MEASURES APPROVED
Which is of course ironic because earlier today Greece was said to have made the latest €350MM payment to the IMF, so what the Troika continues to do is merely agree to lend money to Greece so that Greece can repay the Troika almost immediately.
And meanwhile, the hole gets deeper and deeper, and here is the actual math from Bloomberg:
With Greece’s coffers emptying and payments looming, Prime Minister Alexis Tsipras’s government is coming ever closer to a financial day of reckoning.
While Tsipras may have bought some time after yesterday’s European Union summit in Brussels, he still isn’t saying what’s left in the bank and acknowledges Greece is facing “liquidity pressure.” The country’s cash shortfall is projected to hit 3.5 billion euros ($3.7 billion) in March, according to Bloomberg calculations based on 2015 budget figures.
Even assuming a €1.9 billion payment is made to Greece on the condition that Greece proposes and implements, and this means sending in the "hated" Troika to supervise, Greece will still have nearly a €2 billion shortfall all else equal.
In other words, the Dax may be soaring on Greek optimism, but the money has run out, and for Greece, so has time.
"Yes Alexis, time is running out. Fast." pic.twitter.com/OZEUJJQ5g7
— Jamie McGeever (@ReutersJamie) March 19, 2015
At this point the only thing remaining is admitting it.
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For F's sake Greece, just default and get on with it.
DavidC
As long as the central banksters shunt money into the markets nothing will stop the rise, not war, famine, depression, or plague.
It is that fucking ridiculous.
PS those fucking Greek leftists sure did talk a lotta smack. But when the time came they assumed the position.
Yep they did talk a lot of shit. Once people realize not one single person who is in, or running for public office will save the day, maybe humanity can finally take a step forward again.
A step forward for humanity must be over the stinking corpses of said politicians.
Sounds good to me.
This story is a gift that keeps on giving to the media and markets. New deals every month keep pushing indexed higher. F*ing stupid.
"The Goldman Force is very strong in this one."
EU wide banking 'holiday' on Monday?
Fuck the Greeks!
It's the invisible wall of insanity, I see your van dyke, and raise you a moustache.
^^^this. To think that there can be any progress without a serious refund or retribution it just stupid. Faith will only be restored by holding these motherfuckers accountable. In the meantime, we simply slip closer and closer to a complete free-for-all.
Milli,
Spot on.
What's even more insane is that the ECB is now QEing like there's no tomorrow and the troika is insisting on Greece paying BACK its debt. Crazy.
DavidC
..they're trying to milk Greece's coffers dry. When that's done, state assets as well as oil and gas reserves will be at the control of foreign capitalists. Note the time frames mentioned in both articles... this is merely a work in progress.
Is it time to call spade a spade yet? This way the issuing powers are looting little Greece from all their assets while killing off their population through starvation. I believe they just want their beautiful islands not the inhabitants.
The annexation of Greece has been in the works for awhile ...
On Greek Optimism
Heh heh......OMG!
Come here bitch.....yes you.
I work in the printing industry. I predict great days ahead of me.
default is inevitable. today/this weekend is as good a time as any.
Greece ignores ENEE threats, passes humanitarian bill
Greeks know there is no way out, so the FinMin was correct. Stall and buy time for every Greek to get his affairs in order. The Germans can pull the plug any time they want, until then, every day is another holiday for the Greeks.
"The Germans can pull the plug any time they want"
no they cant. this whole charade is to make sure the german and french banks dont blow up.
Its one hell of a poker game.....and the Greek Poliiticians have put on a great poker face....so as not to scare the Greek people....but these lies will pan out soon enough..as checks start to bounce...then watch the stampede....beware when the guy gets up from the table at the end of the big dinner where he ordered all the expensive stuff and says he has to go to the bathroom....he is going to bolt before the bill comes....lol..the old dine and dash
Lol...Dine & Dash....
I recall a news report years ago and a man who went to the most expensive restaurant and ordered the most expensive meal with the most expensive wine and enjoyed himself.....had a lovely time.........
when the bill came he said call the cops....i have no money.......lol......
He offered to wash the dishes!
lol!
Hows about you and me meet outside, Bruno and Rocko want to balance your checkbook.
Again let's reset.
When the world economy was BOOMING, Greece needed to fudge their financials to get into the EU.
With the world economy in the shitter, everyone expects Greece to be able to pay their debts because ?????
It isn't about finances now it is about PR. Germany doesn't want to be seen throwing Greece out and Greece doesn't want to be seen as quitting.
exactly, so Germany pretends to loan Greece money and Greece pretends to comply...
Its like watching doctors for peform endless CPR on a patient that was decapitated
Stuck the landing...
LOL!! Shit, the "money ran out" a long, long, time ago....
Money is gone. But plenty of currency sloshing around.
had to re-read your comment, I read it first time as "the shit money ran out" (in my head in Leahy's voice from Trailer Park Boys) which would have also been apropos.
Is Greece " too big to fail"?
This is no differant than all the digital that flows to the FSA and the MIC here in the States, to keep them placated. Edit: + banks.
Wasn't " something" supposed to happen today?
Well the sun was supposed to rise, and it did.
Deadbeats! Wankers! Scumbags!
Just change Greece to Deutschland II and you can have all you want.
Words, names and papers. Greece just needs to divorce Greece and see if the EU can find Greece down by the river because Greece doesn't live here anymore. If they owe you money that's your problem. Maybe you should have thought of that before you went drinking with Greece and loaned Greece money. Let that be a leason.
GERMANY TO LEAVE THE EURO AND REINTRODUCE THE DEUTSCH MARK, REBRANDED AS DEUTSCH MERKEL
Problems with Greece being staged to allow Germany to kick itself out of the Euro.
Source: www.financialpaparazzi.com
Before declaring bankruptcy you must first see how much you can draw on your credit card.
A DM would be too srtong for Germany's trade. They will not leave Euro, though the troubles with Greece helps keep the Euro low and German trade balances from sinking.
Greece leaving the euro will be bad for the euro at first, confusion and doubt, before it stabalises and strengthens more, making life a little harder for German trade.
Is it me or if you put a monocle on Draghi he'd look like Count Dracula from Sesame Street.
The other guy, dieselboom and Rand Paul also have the same hair weave.
One! One trillion euro! Ah ah ah ah!
Greece is bankrupt? First i've heard of this, market better hurry up and price this in
Again, there will be no Grexit. There will be a coup d'etat. Tsipras and company are in over their heads, have figured that out, and are buying time to arrange their own bug-out plans.
Wake me for the lynchings.
Picture caption.
Al to Mario:
"Look, I got 136 Euros here...take it or leave it."
Germany must be enjoying the low Euro. This drama is good for their export industries.
At the risk of repeating myself, this reminds me very much of the run-up to the Lehman Brothers step function. When Lehman went down, it wasn't because people didn't know they were bankrupt. Everyone had known for a long time they were bankrupt. It was when TPTB made the decision to stop supporting them in their bankruptcy that TSHTF. Everyone expected the rigged game to continue, and it didn't.
Here we are with Greece. Everyone expects the rigged game to continue, and...
Here we go again.
James Rickards in Currency Wars gives some figures for the loss magnification of complex financial instruments/derivatives in 2008.
Losses from sub-prime - less than $300 billion
With derivative amplification - over $6 trillion
The bankers wiped out over $6 trillion of global wealth in 2008 and received unconditional bailouts.
Greece seems to be getting a very hard time over its 300 billion debts, chicken feed in comparison.
I have a cunning plan .....
In 2008 Goldman Sachs changed to a bank holding company over-night so it could access the FED bailout window.
Central Banks just print money as it is only fiat paper money these days and is not tied to anything real.
So ......
Greece converts to a bank holding company over-night.
Mario brushes past the ECB printing press and moves the dial from 1 trillion to 1.3 trillion.
Now the excess fiat paper money can be passed to Greece and the crisis is over.
Or ....... some other financial trickery that banks use ... splitting Greece into a bad country with the debt and the good real country (bad bank/good bank).
Or ....... Put all the debt in an off balance sheet vehicle that can be forgotten about.
etc .....
Central bank balance sheets are chock-a-block with non-performing sub-prime loans, adding the loans to Greece will make little difference.
That debt is somebody's asset. You can't just hide the debt (asset) without somebody making a noise about it.
Best to just default. No amount of accounting chicanery will make a scam or unsustainable debt problem disappear in the long run. Its best for everybody to face these impending losses today rather than tomorrow.
The can kicking central banks have painted themselves into may be buying time, but it will not end well for most of us. 2008 is a walk in the park compared to the monster they have created with this era of QE and low interest rates, manipulations and rigged markets.
As soon as we get on the rate hike boat, shit will hit the fan like never before and you had better be hedged. Best to let free markets resume and settle price discovery back in the marketplace. Central planners are THE fucking problem right now.
The 6 trillion the bankers lost in 2008?
I though all shitty non-performing loans just went on Central Banks balance sheets and the initial creditor gets 100% reimbursed.
Any creditor making a loss is just so 20th Century.
Long bullshit.
They should give them a 1 trillion drachmae coin.
The DAX might pop on irrelevant rumblings out of Greece but the general move is a flight-to-quality from government assets to private. ZH still hasn't got a clue and has been talking down the moves for 6 years now. Cramer and Gartman would be proud of that track record.
just central banksters buying shit and mortgaging the next 40 years
audit these central banksters - let's see how their balance sheets full of manfactured inventory, ships filled with oil moored somewhere, piles of raw metals, container ships full of beef and shares in the S&P50 these fuckers have bought
right yellen? you ditch pig? right barry? you communist asshole fuck!!!
ZH, I will willingly edit all of your posts in exchange for:
1. Poorly constructed phrases> $5 per edit.
2. Spelling errors>>>>$25 per edit (I can make real money here).
Come on, guys, let's start checking our work.
ZH, I will willingly edit all of your posts in exchange for:
1. Poorly constructed phrases> $5 per edit.
2. Spelling errors>>>>$25 per edit (I can make real money here).
Come on, guys, let's start checking our work.
.............risks sending Athens stumbling _____ of the euro zone.
"OUT?"
Ironic that the best thing for Greece would be a return to a free and unconstrainted market, whenever and wherever possible; and that baby to be delivered by a Commie.
And, of course, default.
I think Draghi will solve this problem. He is from Goldman Sachs.