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"The Collateral Has Run Out" - JPM Warns ECB Will Use Greek "Nuclear Option" If No Monday Deal

Tyler Durden's picture




 

In Athens on Friday, the ATM lines began to form in earnest.

(via Corriere)

Although estimates vary, Kathimerini, citing Greek banking officials, puts Friday’s deposit outflow at €1.7 billion. If true, that would mark a serious step up from the estimated €1.2 billion that left the banking system on Thursday and serves to underscore just how critical the ECB’s emergency decision to lift the ELA cap by €1.8 billion truly was. “Banks expressed relief following Frankfurt’s reaction, acknowledging that Friday could have ended very differently without a new cash injection,” the Greek daily said, adding that the ECB’s expectation of “a positive outcome in Monday’s meeting”, suggests ELA could be frozen if the stalemate remains after leaders convene the ad hoc summit. Bloomberg has more on the summit:

Dorothea Lambros stood outside an HSBC branch in central Athens on Friday afternoon, an envelope stuffed with cash in one hand and a 38,000 euro ($43,000) cashier’s check in the other.

 

She was a few minutes too late to make her deposit at the London-based bank. She was too scared to take her life-savings back to her Greek bank. She worried it wouldn’t survive the weekend.

 

“I don’t know what happens on Monday,” said Lambros, a 58-year-old government employee.

 

Nobody does. Every shifting deadline, every last-gasp effort has built up to this: a nation that went to sleep on Friday not knowing what Monday will bring. A deal, or more brinkmanship. Shuttered banks and empty cash machines, or a few more days of euros in their pockets and drachmas in their past - - and maybe their future.

 

 

For Greeks, the fear is that Monday will be deja vu, a return to a past not that distant. Before the euro replaced the drachma in 2002, the Greeks were already a European bête noire, their currency mostly trapped inside their nation, where cash was king and checks a novelty.

 

Everything comes together on Monday. Greek Prime Minister Alexis Tsipras, back from a visit with Vladimir Putin in St. Petersburg, will spend his weekend coming up with a proposal to take to a Monday showdown with euro-area leaders.

 

A deal there is key. The bailout agreement that’s kept Greece from defaulting expires June 30. That’s the day Greece owes about 1.5 billion euros to the International Monetary Fund.

 

Without at least an understanding among the political chiefs, Greek banks will reach the limits of their available collateral for more ECB aid. 

Indeed, JP Morgan suggests that the central bank may have already shown some leniency in terms of how it treats Greek collateral. Further, analyst Nikolaos Panigirtzoglou and team estimate, based on offshore money market flows, that some €6 billion left Greek banks last week.

If no agreement is struck on Monday evening that paves the way for further ELA hikes, the ECB may do exactly what we warned on Monday. That is, resort to the "nuclear option" which would, as JPM puts it, make capital controls are “almost inevitable.” Here’s more:

The escalation of the Greek crisis over the past week has caused an acceleration of Greek bank deposit outflows which in turn increased the likelihood of Greece introducing capital controls as soon as next week if Monday's Eurozone leaders' summit on Greece brings no deal. Indeed, our proxy of Greek bank deposit outflows, i.e. the purchases of offshore money market funds by Greek citizens is pointing to a material acceleration this week vs. the previous week.

 


 

The €147m invested into offshore money market funds during the first four days of this week is equivalent to €5bn of deposit outflows based on the relationship between the two metrics during April (during April, around €155m was invested in offshore money market funds, which was accompanied by deposit outflows of around €5bn). Assuming a similar outflow pace for Friday brings the estimated deposit outflow for the full week to €6bn. In the previous week (i.e. the week commencing June 8th) around €40m was invested into offshore money market funds, which is equivalent to around €1.6bn of deposit outflows. So this week’s deposit outflows almost quadrupled relative to the previous week. Month-to-date €8bn of deposits has likely left the Greek banking system on our estimates, following €5bn in May and €5bn in April. As a result, the level of household and corporate deposits currently stands at just above €120bn. 

 

As mentioned above this acceleration in the pace of deposit outflows is raising the chance that the Greek government will be forced to impose restrictions on the withdrawal of deposits if no deal is reached at the Eurozone summit on Monday. This is because Greek banks' borrowing from the ECB has moved above the €121bn maximum we had previously estimated based on available collateral (€38bn using EFSF as collateral, €8bn using government securities as collateral & €75bn using credit claims as collateral). In particular, by assuming that Greek banks operate at c €1-2bn below the ELA limit as a buffer, we estimate that their current borrowing is €125bn. This is based on the ECB raising its ELA limit to €86bn on Friday this week from €84bn on Wednesday.  

Here is the punchline: when the ECB hiked Greek ELA by €1.8 bilion in its Friday emergency meeting (an amount that was promptly soaked up by the €1,7 billion in Greek bank runs on Friday), it may have done so in breach of the Greek "borrowing base" because, according to JPM, with total ECB borrowings of €125, this means that Greece is now €4 billion above its maximum eligible collateral. The ECB surely knows this, and has breached its own borrowing base calculation for one of two reasons: because it knows the breach will be promptly limited or reversed on Monday, or there will be a deal. In other words, Greece is now officially living on borrowed time:

This €125bn of borrowing from the ECB is €4bn above our estimated maximum borrowing of €121bn, suggesting that the ECB has already showed flexibility with respect to the collateral constraints Greek banks are facing. We argued before that the ECB has the flexibility to adjust haircuts to allow Greek banks to borrow more from the Bank of Greece for a given amount of collateral. It can also start accepting government guaranteed bank bonds as collateral despite the ECB having rejected these bonds before as a source of acceptable collateral. Greek banks have been rolling over government guaranteed bank paper since March. For example Greek banks rolled over €33bn of government guaranteed bank debt over the past three months. However, we doubt the ECB will ever accept large amounts of government guaranteed bank debt, effectively of what it considers as collateral made “out of thin air”. And if no agreement is reached on Monday, then the ECB will have little reason to show further flexibility and it will likely freeze its ELA limit on Greek banks. As a result capital controls will become almost inevitable after Monday. 

All of this is now moot: as we explained previously, for the Greek banks it is now game over (really, the culmination of a 5 year process whose outcome was clear to all involved) and the only question is what brings the Greek financial system down: whether it is a liquidity implosion as a result of a bank run which one fails to see how even a "last minute deal", or capital controls for that matter, can halt, or a slow burning solvency hit as Greek non-performing loans are now greater than those of Cyrpus were at the time when the Cypriot capital controls were imposed. As Bloomberg calculated last week, just the NPL losses are big enough now to wipe out the Big 4 Greek banks tangible capital.


JPM, for now, focuses on the liquidity aspect:

The deposit outflows from Greek banks show how dramatic the reversal of Greece's liquidity position has been over the past six months. The €8bn that left the Greek banking system month-to-date has brought the cumulative deposit withdrawal to €44bn since last December. This €44bn has more than reversed the €14bn that had entered the Greek banking system between June 2012 and November 2014 (Figure 2). The €117bn of deposits lost cumulatively since the end of 2009 has brought the bank deposit to GDP ratio for Greece to 66%. This is well below the Eurozone average of 94%.

 


And with more than three-quarters of the nearly €500 billion in outstanding foreign claims on Greece concentrated among foreign official institutions, any "contagion" will come will come not from the financial impact of Grexit, but from the psychological impact as the ECB's countless lies of "political capital" and "irreversible union" crash like the European house of cards.

Would a Greek exit make the Eurozone look "healthier" as problem countries that do not obey rules are ousted? Or would markets rather question the ability of the Eurozone to cope with a bigger problem/country in the future if they cannot deal with a small problem/country such as Greece? Would a Greek exit make the Eurozone more stable by fostering more fiscal integration and debt mutualization over time? Or would the large losses from a Greek exit rather make creditor nations even more reluctant to proceed with much needed debt mutualization and fiscal transfers in the future? Would a Greece exit, and the punishment of Syriza as an unconventional political party, reduce the popularity of euroskeptic and unconventional political forces in Europe, as Greece becomes an example for other populations to avoid? Or would a Greek exit and the punishment of a country that refused to succumb to neverending austerity rather demonstrate the lack of flexibility, solidarity and cooperation giving more ground to euroskeptic parties across Europe?

Again we see that the entire world is now wise to the game the troika is playing. This isn't about Greece, it's about Spain and Italy or any other "bigger" problem countries whose voters elect "euroskeptic" politicians. As a reminder, if and when the Greek problem shifts to other PIIG nations, then it will be truly a time to panic:

 

So much as US-Russian relations are, to quote Kremlin spokesman Dmitry Peskov, "sacrificed on the altar of election campaigns", so too are relations between Greece and its European "partners" sacrificed for political aims. In the end, the entire Greek tragicomedy comes back to the simple fact that a currency union with no fiscal union is no union at all and will likely be nearly impossible to sustain. We'll leave you with the following quote from Alexandre Lamfalussy, BIS veteran, first President of the EMI (the ECB before the ECB existed), and the "Father of the Euro":

"It would seem to me very strange if we did not insist on the need to make appropriate arrangements that would allow for the the gradual emergence and the full operation once the EMU is completed of a community-wide macroeconomic fiscal policy which would be the natural compliment to the common monetary policy of the community."

 

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Sat, 06/20/2015 - 12:56 | 6217464 BarkingCat
BarkingCat's picture

That's only true of the political class and only because your politicians constantly suck our politicians' dicks.
Now bend over and assume the position because our politicians need service from you as well.

Sat, 06/20/2015 - 13:06 | 6217478 tarabel
tarabel's picture

 

 

On the flip side, I'm sure you've seen plenty of American peckers in the last 30 years.

As for cops, no doubt you've formed your impressions from watching the propaganda box. Around here, they are most noticeable by their complete absence, or for the friendly nod they give you down at the gas station twenty miles from here. Which is not to say that every cop everywhere isn't beholden to his paycheck and pension. They will do whatever they are told to do by the authorities and keep their own opinions to themselves. Worldwide phenomenon.

Curiously enough, I have a PBS station here that has a subchannel which shows nothing except worldwide news feeds and overseas cop dramas. I'm constantly amazed at the tactics that those TV Swedes use on their suspects. Beat the shit out of them.

Sat, 06/20/2015 - 13:40 | 6217441 greenskeeper carl
greenskeeper carl's picture

hahahahaha thats the funniest fucking thing Ive read all day. Whats funny is a actually agree with both of you. The euro males Ive seen look more feminine than half of their women. And Americans are insanely obese, and many haven't seen their dicks in decades, especially our useless cops. Both of the guys arguing may not fit into their respective categories, and are getting mad, but both of yall gotta admit, the other one does make a good point....

 

Stereotypes tend to originate in reality...

Sat, 06/20/2015 - 15:43 | 6217766 WillyGroper
WillyGroper's picture

who's reality?

Sat, 06/20/2015 - 17:39 | 6217973 willwork4food
willwork4food's picture

I was talking to an Polish American dude the other day on a job site and he said you can say hello to a beautiful girl and she usually smiles and continues on her way. Most girls around here think having a stuck out Kardashian butt, thighs as thick as an elephants is sexy. I think it's disgusting.

.

Sat, 06/20/2015 - 19:49 | 6218168 Fukushima Fricassee
Fukushima Fricassee's picture

Or balls

Sat, 06/20/2015 - 11:45 | 6217304 ebworthen
ebworthen's picture

When an un-payable debt is involved, it is never a matter of if but when the default comes.

It is long past time for this charade to end, and for the ECB to stop playing this cruel game.

Sat, 06/20/2015 - 12:03 | 6217343 MartyFlesh
MartyFlesh's picture

The only thing that needs to be known about Unpayable Debt, it that is Unpayable.  End Of Story!

Sat, 06/20/2015 - 11:45 | 6217307 surfvin
surfvin's picture

I prefer impailment and moments before they breathe their dying breathe you light them on fire!

Sat, 06/20/2015 - 11:46 | 6217308 FrankDieter
FrankDieter's picture

Greece soon will introduce $30 BJs.

Sat, 06/20/2015 - 19:50 | 6218173 Fukushima Fricassee
Fukushima Fricassee's picture

$5 is too much

Sun, 06/21/2015 - 08:45 | 6218855 nemesis2012
nemesis2012's picture

You're right, your mother doesn't charge at all!

Sat, 06/20/2015 - 11:50 | 6217310 Turin Turambar
Turin Turambar's picture

SMH. I can't believe that there's Greek money still in banks. Absolutely friggin stupid idiots.

Sat, 06/20/2015 - 16:11 | 6217814 graneros
graneros's picture

Seriously unless you are very well off, why bother pulling fiat out of the bank. Hell fiat is nothing more than an EBT card. I agree with you if you are talking about someone with a ton of cash sitting in a Greek bank.  But then if the wealthy haven't convereted that cash to PM or some other usable commodity by now then your "Absolutely friggin stupid idiots" is not only correct but an incredible understatment.

Sat, 06/20/2015 - 11:52 | 6217316 Urban Redneck
Urban Redneck's picture

When the Bank of Greece finally pubishes the May balance sheets (on June 26) the estimates for May will be exposed as underestimates.  

Sat, 06/20/2015 - 15:43 | 6217767 walküre
walküre's picture

Unless the Troika can audit the balance sheets, we must assume that the numbers are fraud.

Nobody has lifted a shovel in Greece for a couple months now but the economy is growing.

Sat, 06/20/2015 - 11:53 | 6217318 localizer
localizer's picture

People are wearing winter coats in June in Greece? Looks like yet another wrong picture used...

Sat, 06/20/2015 - 11:58 | 6217331 invisible touch
Sat, 06/20/2015 - 11:59 | 6217333 ebworthen
ebworthen's picture

They want their money before it is stolen, therefore they are lining up very early in the morning, I'd bet dawn just broke.

It can be a tad cool that early in the morning, what with the sea close by and the humidity and the morning breeze.

Sat, 06/20/2015 - 12:28 | 6217395 henry chucho
henry chucho's picture

The winter coats make a good sleeping bag when your sleeping in a storm drain..or on a park bench.The deep pockets let you store personal items like a toothbrush..or a can of sterno..The baby carriage is a great decoy for pan-handling..or hauling around cans of cat-food..

Sat, 06/20/2015 - 11:57 | 6217325 i_call_you_my_base
i_call_you_my_base's picture

It's looking more and more like Syriza is letting the runs happen. They don't seem concerned or put much effort in trying to calm the public on it.

This strategy would be a good one if on purpose. Give the citizens time to move the money out of the greek banking system, then grexit, default, nationalize the banks, and convert all remaining assets to drachma.

Sat, 06/20/2015 - 12:10 | 6217358 samjam7
samjam7's picture

The problem is there won't be a lot of Assets left. Maybe Tsipras will try to rebuild with what Putin is currently promising him and with the Gold reserves but this could still turn out to be a nasty experience. 

My suggestion, let the banks default, all the collateral the ECB has accumulated in recent months for ELA will be dust and Draghi will look super stupid and the Greeks remain with their hard earned cash and build up a new banking system (me hopes more efficient this time, but that's a dream)!

While one part of me still thinks the government could falter with all the pressure another part thinks that with all they put through up until now, why sway in the end? Both sides have gone all in already and now we will see who actually made the bigger bluff. 

Sat, 06/20/2015 - 12:16 | 6217376 i_call_you_my_base
i_call_you_my_base's picture

Right, there wouldn't be many assets left, but at least the average person would have access to funds. Having the deposits in greek banks would mean bail ins and then the greek people would be really pissed, and that would turn them hard against the current government.

Also, the government could then sell drachma back to the greeks, who would repatriate the euros, and then the government could hold the euros as reserves.

In any case, I'm on the side of deal too. But I guess I hold out some hope that they'll jump ship.

Sat, 06/20/2015 - 11:57 | 6217327 henry chucho
henry chucho's picture

The people in the photos don't seem too worried about starving to death next week..Are you sure you have Athens Greece,and not Athens Georgia?

Sat, 06/20/2015 - 12:02 | 6217339 q99x2
q99x2's picture

Raise the bounty. Issue the arrest warrants. Bring the banksters to justice and welcome prosperity.

Sat, 06/20/2015 - 12:08 | 6217352 Jack Burton
Jack Burton's picture

I'm not worried I'm sure that emergency negotiations can solve this crisis, we have all day till Sunday night. Just extend and pretend and close your eyes for say another month. Then renegotiate without all the deadline pressure. CDS can not be triggered, and EU banks can't Book the default losses. All those banks who scooped up Greek debt? Imagine how much brains that took!

Sat, 06/20/2015 - 12:12 | 6217364 Bossman1967
Bossman1967's picture

So they need billions every month to pay back 500 billion this whole thing is bullshit the lazy greek people want to retire and party all day. Lets see the first democracy pay thier dues and maybe America will take notes so our lazy millenials will get to fucking work and learn from the Grreka but watch Monday the deal will be cut and ajuly all this all over again

Sat, 06/20/2015 - 12:31 | 6217405 DutchBoy2015
DutchBoy2015's picture

Get to work doing what?  Flipping more burgers and serving GMO crap food? 

Sat, 06/20/2015 - 12:40 | 6217426 lakecity55
lakecity55's picture

"I just want to bang on the drum all day."

Sat, 06/20/2015 - 15:51 | 6217779 WillyGroper
WillyGroper's picture

@Bossman67,

Yes, you're so right. It was those lazy partying Greek people that were complicit in the Greek/GS book cooking. Lazy millenials...

You remind me of an engineer I know that has no clue as to what NAFTA did, thinks everyone is lazy & the FRN's are backed by gold.

Shouldn't you be painting over grafitti somewhere?

Sat, 06/20/2015 - 12:13 | 6217368 Pullmyfinger
Pullmyfinger's picture

I wouldn't be the least bit surprised to learn on Monday that rubles and/or yuan will be adopted in Greece as de facto legal tender, and/or that a new drachma will be issued with an exchange rate already fixed for rubles and/or yuan

And presto-chango! Back in business with a new Russian port facility and pipeline under construction and hiring, in addition to new 'Silk Road" contracts.

Sat, 06/20/2015 - 12:30 | 6217402 DutchBoy2015
DutchBoy2015's picture

Sounds good to me,  fuck the kIKE roaches of the ECB and FED and JP Morgan and GS

Sat, 06/20/2015 - 12:37 | 6217407 lakecity55
lakecity55's picture

On my last mission, my Indian boss and I loaded up on Yuan and Rubles.

The guy is fair, but a slave driver. He has never missed an opportunity to profit.

"Here, LC, 10,000 Yuan for USD equivalent.  You will thank me later."

"I value you knowledge of Security Systems. There will be more from Mr Modi."

Sat, 06/20/2015 - 22:31 | 6218413 mortem-tyrannus
mortem-tyrannus's picture

+1

Most guys have a fantasy of a beautiful female dominatrix right up until she actually crushes one or both of your testicles.

Reality can be a fucking bitch.

Sat, 06/20/2015 - 12:14 | 6217370 Able Ape
Able Ape's picture

I'm offering bonds that yield 72% - double your money in just ONE year!  Send me YOUR money!  HOW can you lose?....

Sat, 06/20/2015 - 12:19 | 6217380 besnook
besnook's picture

so russia wins greece. ferdinanopolis is readying his carriage for the first shot of ww3.

Sat, 06/20/2015 - 12:38 | 6217398 lakecity55
lakecity55's picture

"We go to our corespondent, Brian Williams, on the ground in Greece:"

"Early today Russian Fulcrum fighters fired at me as I was filming the Air Base. Afterwards, The Russians, who now have 99- year lease on the base, roughed me up. I enjoyed it.

"Looks like ZATO has lost a foot in the Med. Chinese warships are due at any moment. I can't wait for them to beat me.

"Brian Williams, reporting from Athens Urgent Care here in Greece."

Sat, 06/20/2015 - 12:23 | 6217388 FrankDieter
FrankDieter's picture

Time for all Greek citizens to pony up $2500 each to save the country and pay back the Trioka.

Pensioners to take immediate 37 % cut and then 12 % per year next 4 years.

Government workers should  take 65 % paycut and they should layoff / fire 35 % of them first.

 

End of problem.

Sat, 06/20/2015 - 12:58 | 6217459 Wolferl
Wolferl's picture

Yeah, or impose a 10% one time tax on all assets in Greece, pay the creditors with that money, problem solved. But that´s not the Greek way of course, those Mfs think they have a godgiven right to betray, steal and cheat other peoples for their money.

Sat, 06/20/2015 - 13:39 | 6217547 Niall Of The Ni...
Niall Of The Nine Hostages's picture

Their entire stock market is only worth a fraction of their debt. Take fucking all of it. 

They want Bolshevik government, give it to them---famine and sealed borders included. Make them pay those taxes in kind. No more deadbeats living on Grandma's "pension." March those fuckers into the countryside and make them pick grapes and olives. If Grandma's past farm work, put the old bitch out of her misery.

The Greeks are the niggers of Europe. Best we start treating them accordingly. Sooner they're cleaned out and replaced with a more deserving nation the better.

 

 

Sun, 06/21/2015 - 08:52 | 6218861 nemesis2012
nemesis2012's picture

Hey, dickhead German pay Greece war reparations of 850 billion dollars and we'll talk about the fraudulant debt you have imposed on Greece. By the way, I'd like to bitch slap you!

Sun, 06/21/2015 - 09:19 | 6218883 overmedicatedun...
overmedicatedundersexed's picture

Greece Russia meeting notes:

" Alexis Tsipras ,Mr putin we need funds to pay our debt to IMF and EU, can you help??

  Putin, Laughing and saying , Sure Russia stands ready to help our Greek Friends. But one question If you give funds to pay your debt ...how does that help?

  Alexis, well you know we would be solvent again.

  Putin, No no my friend, Russia will only help if you DO NOT PAY them...

  Alexis, what you mean stiff the banksters??

  Putin, you learn quickly. Look at Iceland debt null and void.

  Putin, we will support your new Dracma and you will default on the western loans, you will weaken the EU and it's banks and we will both gain our goals..

  Alexis, they will kill me... Putin, perhaps but they will fear you and Russia will let them know if they do

kill you, they are risking Russia agents doing the same for them..

 Alexis, thank you I now understand, it is good to be debt free and have our people free from them.

 

 

 

Sat, 06/20/2015 - 12:58 | 6217467 Niall Of The Ni...
Niall Of The Nine Hostages's picture

Stop paying the pensions, period. Grandma is supporting her deadbeat son? Tell him to get his sorry ass to Germany and get a job. 

People in normal countries who have to work and save for what they want are done paying for old Greek commies to take thirty years to die.

Do austerity right.

Food rationing, no more than 1500 calories per adult, till the debt is paid off in full.

No more freebies to those not gainfully employed. That includes the elderly. Their care is their children's job. If they have no children or their children hate them, that's nobody fault but dear old Mom and Dad's.

You want a doctor, you pay for it.

You don't leave Greece alive unless you can pay your share of the tab in cash for an exit visa.

Be willing to work for what someone can afford to pay you. Rest assured that's a lot less than what you think you deserve. If it's nothing, figure out why that is and do something about it.

Make do with three hours of electricity, two of TV. Make your own fucking entertainment for a change. 

If, like Romania, you're serious about paying off the national debt, it can be done. By 1989 Romania was able to burn the mortgage years early and was planning to start its own sovereign wealth fund. 

PAY. IT. OFF!

Then, maybe, your countrymen will think twice before letting some politician throw away money you don't have on crap you don't need or give it to people who deserve nothing but some lessons in reality beaten into them, because they don't learn any other way, if at all.

(Of course, Ceau?escu was rewarded by being overthrown and killed, and replaced by non-entities who racked the credit card back up, but that's another story.)

 

Sat, 06/20/2015 - 22:27 | 6218408 mortem-tyrannus
mortem-tyrannus's picture

I am cheering on your comments here Niall. They are a lot of fun to read. The problem of course is *who* gets to do all the things you suggest.

Investing any political body with that kind of power seems like a really bad idea.

But cutting off the funds and letting everyone sink or swim is a great idea.

Look at all the down votes you get from left leaning cunts here.

I can't imagine any of *them* are living on Grandma's pension. *Cough*

Sun, 06/21/2015 - 08:57 | 6218864 nemesis2012
nemesis2012's picture

A fuckin Romanian gypsi is going to dictate to Greece,LOL!  Why dont you take care of the Gypsi wasteland-Romania and leave the Greeks to handle the jew bankers.

Sat, 06/20/2015 - 12:26 | 6217392 lakecity55
lakecity55's picture

The whole gig may blow up after Monday.

Euro, then USD.

Enter The Dragon...uhh I mean the Yuan.

Sorry Bruce.

Sat, 06/20/2015 - 12:43 | 6217433 Iam Yue2
Iam Yue2's picture

Commerzbank: "in the case of Greece, an end to ELA would probably amount to a de facto end of
euro membership."

Sat, 06/20/2015 - 12:44 | 6217437 moneybots
moneybots's picture

"Again we see that the entire world is now wise to the game the troika is playing. This isn't about Greece, it's about Spain and Italy or any other "bigger" problem countries whose voters elect "euroskeptic" politicians."

 

It isn't confined to subprime.

Sat, 06/20/2015 - 12:49 | 6217445 Bam_Man
Bam_Man's picture

How can Greece possibly have a functioning financial system post-Grexit, if all the 'good' collateral of the Greek banks has been pledged to ELA? Won't the ECB seize it all?

Perhaps that is now the plan. Soak up all the 'good' collateral that remains in the Greek banking system and they will have no choice but to remain in the Eurozone.

Hmmmm....

Sat, 06/20/2015 - 14:04 | 6217524 Wolferl
Wolferl's picture

One of the smartest comment i´ve red here in months. The ECB system has now almost 200 billion in good collateral from Greece in their books aquired via ELA. The Greek commercial banks can go bust in case of a Greek default, this doesn´t matter much for the Euro and the ECB, they are now holding real assets in Greece.

Sat, 06/20/2015 - 23:21 | 6218481 besnook
besnook's picture

at least they think they do.

Sat, 06/20/2015 - 12:50 | 6217449 Meremortal
Meremortal's picture

So, if the big bank is getting hard to deal with you go to the Mafia guy on the corner (Putin).

That will not end well either.

 

Sat, 06/20/2015 - 13:49 | 6217565 NihilistZero
NihilistZero's picture

Sometimes "The enemy of my enemy is my friend" is the only option.  Unlike the Troika, Russia and Greece's interests actually converge.  That can always change, but as it stands a partnership between Russia and Greece allows each to get what they want without detriment to the other.  Kinda the way you'd expect voluntary international relations to work in general.  Heaven forbid nations interact peacefully to mutual benefit...

Sat, 06/20/2015 - 14:02 | 6217590 Volkodav
Volkodav's picture

expect the opposite when work with builder as opposed to parasites

Sat, 06/20/2015 - 14:55 | 6217679 VWAndy
VWAndy's picture

Only two options? No sale.

 

Sat, 06/20/2015 - 12:50 | 6217450 ThroxxOfVron
ThroxxOfVron's picture

"The Collateral Has Run Out" - JPM 

 

Goddamned LYING Bankster scum!!

There is NO collateral in the world save Human Productivity.  

There has never been any collateral except for Human Productivity.

ALL paper 'collateralization' is nothing but fraudulant Bankster 'finacialization' and counterfeiting.

PERIOD.

Sat, 06/20/2015 - 13:00 | 6217469 DutchBoy2015
DutchBoy2015's picture

Kike roach banksters.  Hated throughout history .

Sat, 06/20/2015 - 14:48 | 6217668 Meremortal
Meremortal's picture

Banksters hated?

Not by me. American banksters were my road to wealth, and I couldn't have done it without them.

Used correctly, other people's money is the road to financial security. 

I've been hearing this blame game since the 60's. I'm glad I ignored it. Everything was about to collapse then too, according to the failures and excuse makers.

Sat, 06/20/2015 - 15:35 | 6217746 DutchBoy2015
DutchBoy2015's picture

all your so called 'wealth''??   Go fuck yourself asswipe.  I am not wealthy but I am debt free with home paid off. 

Sat, 06/20/2015 - 22:21 | 6218394 mortem-tyrannus
mortem-tyrannus's picture

Does a molester van parked down by the river next to the crack addicts count as "debt free with home paid off"?

I suppose it does. Great job dutch boy.

Sat, 06/20/2015 - 15:36 | 6217758 DutchBoy2015
DutchBoy2015's picture

I have a Louisville Slugger that wants to meet your head, you S.O.B./  Some of us actually WORKED for a living but trash like you just love USING people.

Sat, 06/20/2015 - 22:18 | 6218388 mortem-tyrannus
mortem-tyrannus's picture

The thing stupid fuckers here don't seem to understand is that bankers are a sign of wealth. Go look at your local neighborhood shit hole and you are not likely to find a group of men whose job it is to take excess savings and invest it profitably in future production.

That is how you make wealth. I am glad you rode that wave Meremortal. You enriched yourself and helped lots of others in the process.

Now, if only we could get back to having the markers means something real, like when they were ounces of gold instead of promises of unicorn farts.

Sat, 06/20/2015 - 14:31 | 6217632 VWAndy
VWAndy's picture

Now thats a post worth reading more than once. Thanks Troxx!

Sat, 06/20/2015 - 12:53 | 6217457 Bunga Bunga
Bunga Bunga's picture

This is what Wall St always wanted. ECB starts massive printing.

Sat, 06/20/2015 - 12:55 | 6217461 wmbz
wmbz's picture

Nah, some bullshit "solution" will be pulled out of their ass in the final hour. There is still some couch change for Banskters Inc. and they will collect!

Greece enjoy the continuned ass pounding!

Sat, 06/20/2015 - 12:55 | 6217462 wow thats crazy
wow thats crazy's picture

Greece knows there can't be any deal with Troika!

To save Greece it's time for the bankers to lose on their bets!!

No more bailout, no more austerity, Just Greek Sovereignty!

Sat, 06/20/2015 - 12:57 | 6217466 blindman
Sat, 06/20/2015 - 13:05 | 6217476 OneTinTrooper
OneTinTrooper's picture

I am willing to eat more greek yogurt if it will help them out.

Sat, 06/20/2015 - 13:11 | 6217488 Wile-E-Coyote
Wile-E-Coyote's picture

Do they have Internet banking in Greece, I expect they do. No need for long queues outside ATM machines then is there?

Sat, 06/20/2015 - 13:35 | 6217539 DutchBoy2015
DutchBoy2015's picture

Does your internet banking spew out bank notes thru you PC?

Sun, 06/21/2015 - 04:27 | 6218737 Wile-E-Coyote
Wile-E-Coyote's picture

Ah no but I can transfer funds abroad.

Sat, 06/20/2015 - 13:12 | 6217493 bluez
bluez's picture

I am making deals where I pay out 10 dollars if it's not substantially concluded by Tuesday, or you pay me 3 dollars if it is. I used differential equations to formulate this, so its not mere "gambling". It's a Credit-Default Swap.

Sat, 06/20/2015 - 13:17 | 6217508 Soul Glow
Soul Glow's picture

Killer Mike wants to run for office.  Killer Mike wants you to arm yourself.

http://www.breitbart.com/big-hollywood/2015/06/19/killer-mike-i-wish-tho...

Sat, 06/20/2015 - 13:22 | 6217516 jmaloy5365
jmaloy5365's picture

I'm running for President. Joseph Maloy at GoFundMe. Will put an end to all this BS.

Sat, 06/20/2015 - 13:22 | 6217518 smacker
smacker's picture

And just to add some spice to the mix, here's what the Euro has done to ClubMed according to the IMF: Euro Disaster

Sat, 06/20/2015 - 13:22 | 6217520 Old Doctor
Old Doctor's picture

Joining the EU - under whatever circumstances - is like a deal with the Mafia. Once in you can never get out. They give you a loan they know you can't pay back, then let you borrow even more because now they've got you in a sqeeze. Then they make you sell them everithing real cheap (which they resell at a huge profit) then they want to extorte you for life. 

If there's a God in heaven Russia will help them out, China will pitch in and the Western criminals will be exposed and condemned by all. It didn't really turn out all that bad for Argentina, did it?

Sat, 06/20/2015 - 14:41 | 6217655 Duc888
Duc888's picture

 

 

Old Doctor, you're right.  There was a youtube vid about 4 years ago where someone was interviewing a Greek politician.  He said exactly what you just wrote.  JPM cracked open their book, saw they couldn't repay, loaned them the money and shorted the fuck outta 'em.  Wash, rinse, repeat.

Sat, 06/20/2015 - 14:42 | 6217657 VWAndy
VWAndy's picture

Aint that the Soros plan to a T?

Sat, 06/20/2015 - 13:31 | 6217532 VWAndy
VWAndy's picture

They should go with the good plan. Arrest some bankers. Show the world the deals made and the names of the dickheads that made them. Then some nice trials followed up with some first class hangings. Print up a coin with a real measureble value backed by say energy. Build an organic economy. Hemp,Booze,home grown stuff. Keep the euro and tax the shit out of all imports. I would love to see the fiat compete with a coin with a real value.

 End the gravy train. Balance the books publicly.

 Shine the light of truth on these shadow dwelling vampiers.

 Its been done the lying scumbag way long enough.

Sat, 06/20/2015 - 13:39 | 6217548 mojojojo
mojojojo's picture

A useful discourse requires the participants to refrain from "argumentum ad hominem". Whether pro or anti XYZ, if your concept of a helpful and illuminating debate is to attach a pejorative label to the opposition and defame their character, then you are practicing pseudo-intellectualism. That is why I love demogogues. Forget rationality and objectivity, go straight for the money shot, prejudices and popular sentiment. Go people!

Sat, 06/20/2015 - 13:44 | 6217557 VWAndy
VWAndy's picture

Lets hear your plan.

Sat, 06/20/2015 - 13:52 | 6217569 mojojojo
mojojojo's picture

Option 1: Sell income producing assets to raise capital to pay back creditors. *Fuck that*

Option 2: Accept Putins bailout package. *Fuck that*

Option 3: Take the haircut, breakaway from the EMU/EU. *No mandate*

Sat, 06/20/2015 - 22:13 | 6218379 mortem-tyrannus
mortem-tyrannus's picture

Agreed. It is a lot of work to make a claim, back it up with evidence and do all the work necessary to defend your claim in a reasonable and rational way.

Far better to label them all testical fondlers and move on.

Mojojo rules:

https://www.youtube.com/watch?v=CfQIwIy7_bU

Sat, 06/20/2015 - 13:44 | 6217555 DutchBoy2015
DutchBoy2015's picture

I hope the European Union  collapses.   Fuck Brussels.  They want to make Europe like the USA, a total shithole.

Bring back our Guilder and Deutsche Mark.

Sat, 06/20/2015 - 13:47 | 6217560 SERReal1
SERReal1's picture

If they actually let things run its' course, then Monday will be very interesting.

Sat, 06/20/2015 - 13:54 | 6217562 mojojojo
mojojojo's picture

There is no such thing as a free lunch in nature, or anywhere else. I doubt the quantum realm has an answer for a free lunch either (please reply with a link if you have one). Greece, your leaders drove you down a dead end street. The current economic paradigm requires you to pay taxes to support the welfare payments. Question. How are you supposed to invest in R&D if you allocated all your profit to dividends? Saving has to occur, and so do payments to a central organisation. How else are roads and the likes supposed to be maintained. Whether public or private, people are the common denominator. A percentrage of people are corrupt no matter where they are in goverment, or in a corporation. What matters most is that the comparatively non-corrupt majority hold the comparatively corrupt minority to account, and deter them from future corruption. Somewhere along the road, the people of Greece need to take a look in the mirror, and take ownership of their future. Oh shit. So do we all!

Sat, 06/20/2015 - 13:57 | 6217581 VWAndy
VWAndy's picture

So basicaly you agree but dont like my choice of words? Thanks for translating into PC.

Sat, 06/20/2015 - 14:29 | 6217630 Duc888
Sat, 06/20/2015 - 14:32 | 6217634 VWAndy
VWAndy's picture

Mexelent!

Sun, 06/21/2015 - 03:07 | 6218707 bunnyswanson
bunnyswanson's picture

Family unit is not unlike a small business.  Between family members, they gather and hunt.  The system we have in place at the present time was not carved in stone.  Consumerism should not lead the way of the world.  Hopefully, we do not have to ask why.  The pig troughs were full for decades.  That was unsustainable.  Now, the same individuals who created the failed policy have arrived with a safety net and a New approach?  Delete the middle class. 

Communities should be able to provide everything one needs to survive in this world, including a job.  Globalization is a scam and monopolies are an insult to anyone who can think beyond their investment dollars.

Sat, 06/20/2015 - 13:53 | 6217573 Niall Of The Ni...
Niall Of The Nine Hostages's picture

What collateral? Greece's entire stock market is worth less than Greece's government debt. There's nothing left. There hasn't been for a long time.

They want communism, give it to them. Cinfuscate the entire real capital stock without compensation, and turn it over to the institutions, to be managed for their benefit and profit. Homeowners serious about staying in their homes will have to buy them back

Turn all powers of government over to a military consul answerable only to the institutions, and give him carte blanche to clean house, in the public and private sector. 

The Greeks are the niggers of Europe, governable only by hard men with guns and not afraid to use them if the children tefuse to behave. Let's just admit that and get on with it. The colonels were the only honest government Greece had in modern history. Greece won't become "investible" again till they, or people like them, return.

Sat, 06/20/2015 - 14:00 | 6217587 mojojojo
mojojojo's picture

Greece, as in the country and its resources are great. They problem is that they want to remain in the Euro, and that is the leverage they have against them. No mandate to abandon EMU/EU. You think tourists won't flock back into Greece once shit settles down. Time to wake up, take the haircut. It is really a good chance to put Greeces internal affairs in order. Clamp down on corruption etc, or just have your oligarchs fuck you over again. IDC. I live in a country where people pay taxes.

Sat, 06/20/2015 - 15:49 | 6217776 Niall Of The Ni...
Niall Of The Nine Hostages's picture

All those lazy douches living off Grandma's pension should be marched into the countryside and made to pick grapes and olives. 

The euro's just an excuse. Greece is a post-Ottoman shitshow because it's full of Greeks. Fling them in the dustbin of history along with the Turks and Arabs and be done with it.

In a world where the EU was actually about free trade among civilized nations, any Greek government that applied for membership would have been laughed at and told to get in line behind Turkey. In that world, 1981 would have seen the accession to the EU, not of Greece but of Israel, the only country in the former Ottoman Empire worth my cat's last bowel movement.

Sun, 06/21/2015 - 09:11 | 6218877 nemesis2012
nemesis2012's picture

Greece has been sabotaged by it's politicians and handed over to Rothchild bankers. According to eurostats, Greeks work the most in the whole of Europe, with the least to show for it, so why are you blowing smoke up people's asses I dont know. Maybe, you work for the Rothchild banks-is that it........

Sat, 06/20/2015 - 13:56 | 6217578 The Delicate Genius
The Delicate Genius's picture

Can anyone recommend an article/essay that provides a good summary of the situation Greece finds itself in now. I've read a few articles here, and in a few newspapers, and many comments here, as always, are illuminating, but I'm wondering if anyone's come across just a good quick and dirty summary?

Sat, 06/20/2015 - 14:21 | 6217616 palmereldritch
Sat, 06/20/2015 - 14:37 | 6217644 The Delicate Genius
The Delicate Genius's picture

thanks, Palmer...

much obliged.

Sat, 06/20/2015 - 14:20 | 6217613 Temerity Trader
Temerity Trader's picture

LMFAO. There cannot be ONE ZH bear who actually believes the oligarchs and their bankers will let it all start to come apart. NO WAY. They will announce a deal was reached to extend Greece “special credit” for 180 days…Dow futures will be limit up Monday morning. Shorts will have their faces ripped off again. If Greece fails, the rest will soon follow…leading right up the America’s own debt-ridden doorstep. The headlines in June of 2018, “ECB Agrees to Throw Greece One Final Lifeline…but Bankers Vow No More after 2019!”

Sat, 06/20/2015 - 14:32 | 6217635 Taffy Lewis
Taffy Lewis's picture

+100 T-Trader.

They're all a bunch of debt whores that know nothing else.

Sat, 06/20/2015 - 14:35 | 6217638 Bighorn_100b
Bighorn_100b's picture

Just read something on yahoo. They say Greece made a deal already.

I thought Monday was the deadline.

Maybe because Russia made a deal with Greece and Ukraine promised to pay back Russia and USA is funding Ukraine. Who suffers? Right again! The American taxpayer!

Sat, 06/20/2015 - 15:03 | 6217692 Volkodav
Volkodav's picture

What supposed deal?     

Yahoo is terrible. Never without sided opinion..

and you should provide link upfront instead of heresay

good ZeroHedgers do it like that...

Sat, 06/20/2015 - 15:22 | 6217725 Bighorn_100b
Bighorn_100b's picture

My bad. Does Greece really have a choice though? USA will flip the bill no matter what. Ponzi Scheme forever! Until WWIII breaks out.

Sat, 06/20/2015 - 18:05 | 6218008 bid the soldier...
bid the soldiers shoot's picture

Greece made that deal with Putin in January after the election. They've been pulling Obama's soft pretzel for 6 months.

And for the EU to get their undies twisted about $325 bil.in Greek debt when, last decade, the US sold the globe scores of trillions of dollars worth of subprime mortgages.

WITH THE INTENTION TO BANKRUPT THE NATIONS OF THE WORLD, DESTROY THE GLOBAL ECONOMY, AND LEAVE THEM WITH UNREPAYABLE DEBT

 

SO THE US & ITS UNRIVALED MILITARY


& PRINTING PRESS IN THE FED'S BASEMENT 

 

COULD RULE THE WORLD

Sat, 06/20/2015 - 19:20 | 6218124 GotGalt
GotGalt's picture

Temerity Trader - I want so much to disagree with you....but nope, I can't!  Shit show will continue until we all are radioactive dust particler blowing in the wind.

Sat, 06/20/2015 - 14:40 | 6217654 surf0766
surf0766's picture

What happens when the coveted VAT taxes are not enough?  What ya say them you comminst aholes.

Yea socialism is great.. wonder as it leads you to the communist dream of grey clothes and cars.

 

Idiots

Sat, 06/20/2015 - 14:46 | 6217665 combatsnoopy
combatsnoopy's picture

I at first thought that Greece should be collateralized with Zeus and Poseidon themselves.

But common sense says Russia could rescue Greece, and Greece could be collateralized with Burisma holdings. :)

Sat, 06/20/2015 - 14:52 | 6217673 Volkodav
Volkodav's picture

Russian Greece relations "have a lot of potential" - Greek Economy Minister

http://rt.com/business/268459-greece-russia-relations-minister/

Sat, 06/20/2015 - 14:58 | 6217684 VWAndy
VWAndy's picture

The problem is not what country issues the fiat. Its the fiat thats the real issue.

Sat, 06/20/2015 - 18:29 | 6218027 blindman
blindman's picture

you may be right? then again, it may be the
control essence at the helm of "issuance";
power.
the noun and verbe of it all? government and conscience,
conveyance, conscription, contrivance, contraception,
conscientiousness and contradiction; word salad with
an infusion.

Sat, 06/20/2015 - 15:09 | 6217696 Bill of Rights
Bill of Rights's picture

25% VAT man that gold sure is expansive. Man am I sorry I've been buying it on the cheap...he he.

Sat, 06/20/2015 - 15:21 | 6217723 Evil Franklin
Evil Franklin's picture

How is it Banksters can create fiat out of thin air and yet we have to pay them back with the wealth that we acrue?

Sat, 06/20/2015 - 15:27 | 6217736 DutchBoy2015
DutchBoy2015's picture

Are you being an anti semite?  This is the Jews' schtick and why they have been kicked out of 109 places in history (and counting). 

Even George Washington and Jefferson warned about the Jews and private central banking.

Sat, 06/20/2015 - 18:22 | 6218031 Monetas
Monetas's picture

We have been warned by you .... what's the next country to kick out the Jews .... I want to divest myself there ?

Sat, 06/20/2015 - 21:16 | 6218312 dreadnaught
dreadnaught's picture

THAT is the corrupt but ingenious plan; Create money from thin air, lend it, (youll take this loan if you know whats good for ya!) and then get paid back in 'real' money!

Sat, 06/20/2015 - 15:22 | 6217724 restelle
restelle's picture

Zombie experiment

Sat, 06/20/2015 - 15:40 | 6217740 Guentzburgh
Guentzburgh's picture

All this silly propaganda from zerohedge is so desperate.

Nuclear option when the weapon is going to vapourize the EU is not much of a threat !

We get it, your other boses linked with USA/ some EU governments are desperate, you have the job of presenting an 'alternative reality' that kind of has some coonnection to rationality, so you mix some facts with inane title and 'deductions'

Yeah, a laugh really, but in their desperation it shows you the links of governments with MM press.

An image ofjust  a  few people outside a cash machine is a bank run .... hahahaha,  the ouflow was by big money finance ministry said, clearly teachnical, everyone in Athens says there is no withrawing of monet out of the ordinary.

But a simulated impression of a bank run is usefull, the EU does not want a real bank run because then Greece will hit the nuclear button, leave the euro and cost a few trillion to EU economies, not to mention Deutch bank going bankrupt or the other German bank that even now is buying Greek debt....

 

Sat, 06/20/2015 - 15:56 | 6217778 spooz
spooz's picture

It seems more like the global banksters working, with the power of creating the money supply through debt issuance, to strip public assets for the globalists who have been gathering privatized assets with help of bankster funding. How dare Greece resist this natural evolution of the global economy?

Ambrose Evans-Pritchard calls the Greek debt crisis the "Iraq War of finance":

"The Troika pushed privatisation of profitable state assets at knock-down depression prices to private monopolies, to the benefit of an entrenched elite. To call that reforms invites a bitter cynicism.

The only reason that the Troika pushed this policy was in order to extract money. It was acting at a debt collector. “The reforms were a smokescreen. Whenever I tried talking about proposals, they were bored. I could see it in their body language," Mr Varoufakis told me.

The truth is that the creditor power structure never even looked at the Greek proposals. They never entertained the possibility of tearing up their own stale, discredited, legalistic, fatuous Troika script."

http://www.telegraph.co.uk/finance/economics/11687229/Greek-debt-crisis-...

Sat, 06/20/2015 - 15:55 | 6217782 walküre
walküre's picture

Greeks will not change their ways in terms of oversight and tax collection or rather lack thereof. The country is financially and economically a real basket case. Not even mentioning their various layers of inefficient bureaucracy.

Croatia has more upside than Greece. I'm not saying this to slander Greece and the Greeks but one has to consider the cultural differences. That culture is not a recent development. It is ingrained in them and it would take another couple decades to establish something different.

This is the real problem.

The EU was sold a Trojan Horse when they let Greece enter the union. Now that horse cost 'em several hundreds of billions of Euro which obviously cannot be serviced, let alone repaid unless the Greeks get a longer and longer life line.

Just stop this nonsense NOW and let them default. Their people are prepared. They are taking money out because they don't trust their own banks and government. This cannot be reversed and even if, who wants to keep paying for this?

Any deal is just a hotch potch solution to an unsolveable problem. Any reform paper the Greeks will present is just lip service. Hot air and hubris on something they can never deliver upon. The one sided track record speaks volumes. Not to mention the in-your-face attitude about "reparations" or this Russia pivot.

Shit or get off the pot. End of story.

Sat, 06/20/2015 - 16:52 | 6217903 Niall Of The Ni...
Niall Of The Nine Hostages's picture

They were admitted because Europe's chattering classes had some romantic notions learned in school about what they believed Greece to be, with no resemblance to the West Turkish shitshow it actually had been for centuries. 

Israel is the only country in the post-Ottoman world bearing any resemblance to a normal country. It should have been Israel admitted to the EU in 1981, not Greece. Not that it was ever likely. Germany has still not forgiven the Jews for the Holocaust.

Default? No. They want communism, give it to them. Confiscate the capital stock and turn it over to the institutions. Make the Greeks pay it off in kind. Every last cent.

Cut the pensions off---all of them---and march the lazy fuckers living off Grandma's pension into the countryside and make them pick grapes and olives from sun-up to sun-down.

Make workers catering to foreigners work for tips only. Let Germans enjoy a truly affordable holiday for little more than the cost of the plane ticket. 

All food fit to eat to be exported or served to tourists. Make Greeks eat the leftovers. Food to be rationed, with rations only sufficient to keep workers from dropping dead on the job. Rations only for those able and willing to work. Grandma will eat what her children give her or not at all. Children who do notvwork will have to share with parents. I dare say they'll start working early.

Electricity to residences to be cut to three hours a day, 5pm to 8pm. Two hours of TV, broadcasting news and religious programming only. Make people make their own entertainment.

Any able-bodied Greek wishing to leave the country must pay their share of the debt for an exit visa---EUR30000 each. Any caught trying to escape to be severely punished. Any caught elsewhere in the EU to be returned. If Paul Krugman loves the Greeks so much, let him cough up the money to buy a Greek family's freedom.

Sat, 06/20/2015 - 17:47 | 6217987 spooz
spooz's picture

Of course.  Greece joined a monetary union, not a fiscal union.  If they can't pay the vig, its time to break some kneecaps. You can't let the other leeches, like Spain and Italy, think you're a chump.

Sat, 06/20/2015 - 18:49 | 6218076 Niall Of The Ni...
Niall Of The Nine Hostages's picture

Do you know why loan sharks can charge lower rates than a payday loan place? People borrowing from loan sharks know that if they don't pay it back enforcement will be swift, sure and merciless. So the risk is much lower.

It's rarely appreciated how efficient mob justice is. Much more so than the shitshow that passes for official civil and criminal justice in most of the world. Cheaper too.

If any Greek government had thought there was a chance in hell NATO troops would be showing up in Athens to whack them if they defaulted, there would never have been a government debt crisis in Greece. 

Sat, 06/20/2015 - 18:18 | 6218029 mog
mog's picture

Israel.

Normal?

So whats the 'new/ normal?

Genocidal warcriminals?

Sat, 06/20/2015 - 18:44 | 6218068 SirBarksAlot
SirBarksAlot's picture

Every American has given the equivalent of $5000 in aid to Israel. The US gives $8.5 million a day in military aid to Israel

http://www.ifamericansknew.org/stat/usaid.html

So don't even start with how much better qualified Israel is, financially, than Greece.

Sat, 06/20/2015 - 19:19 | 6218121 walküre
walküre's picture

U$rael receiving billions in aid annually is a much better qualification in my union. At least they will never be broke.

Sat, 06/20/2015 - 20:33 | 6218245 Niall Of The Ni...
Niall Of The Nine Hostages's picture

Israel only gets that money because in 1973 Israel put the Gentile world  on notice that the first victims of the second Holocaust would be the wastes of air who organized the first one.

The Jews know that there are people out there that would cheerfully see them in hell, and are determined to prevent it at all costs---or, failing that, make sure their tormentors die with them. Said tormentors tend to come from nations who have contributed nothing to humanity save ear-splitting folk dances and the local liquor which they drink by the gallon to forget the misery of their lives, and from which anybody with any wits flees at the first opportunity.

Like Greece, say.

Sun, 06/21/2015 - 02:36 | 6218688 bunnyswanson
bunnyswanson's picture

See:  Edwin Black's Transfer Agreement.  Holocaust was an inside job.

Sun, 06/21/2015 - 08:57 | 6218866 Niall Of The Ni...
Niall Of The Nine Hostages's picture

Oh, I know. In the halls of power Israel was never intended as more than a Jewish reservation as opposed to a state, a dumping ground for Jews who competed with the sons of the local gentry (of whom few were Jewish) for top jobs in government, industry and the professions, as well as banking. Uganda or Madagascar would have served just as well as Palestine. All were poor and infested with savages who, it was hoped, would make short work of the Jews.

As such, it proved impossible to convince more than a few Jews to go quietly. More drastic measures began to be considered.

Sun, 06/21/2015 - 09:19 | 6218884 nemesis2012
nemesis2012's picture

You fuckin racist jew! Its true that you are the devil's children!

Sat, 06/20/2015 - 19:25 | 6218130 GotGalt
GotGalt's picture

Funny, I don't recall reading anywhere that there existed a Rothschild with the first name of Niall?  Are you the bastard child of one of their outside dalliances?

Sat, 06/20/2015 - 20:15 | 6218210 Niall Of The Ni...
Niall Of The Nine Hostages's picture

If only. I'd leave for Israel tomorrow morning.

Sat, 06/20/2015 - 16:14 | 6217820 TheGreatRecovery
TheGreatRecovery's picture

"We had to nuke the Greeks to save the Greeks". :-)

Sat, 06/20/2015 - 16:49 | 6217898 Salzburg1756
Salzburg1756's picture

Monday Monday, so good to me,
Monday Monday, it was all I hoped it would be
Oh Monday morning, Monday morning couldn't guarantee
That Monday evening you would still be here with me.

Monday Monday, can't trust that day,
Monday Monday, sometimes it just turns out that way
Oh Monday morning, you gave me no warning of what was to be
Oh Monday Monday, how could you leave and not take me.

Every other day, every other day,
Every other day of the week is fine, yeah
But whenever Monday comes, but whenever Monday comes
You can find me cryin' all of the time

Monday Monday, so good to me,
Monday Monday, it was all I hoped it would be
Oh Monday morning, Monday morning couldn't guarantee
That Monday evening you would still be here with me.

Every other day, every other day,
Every other day of the week is fine, yeah
But whenever Monday comes, but whenever Monday comes
You can find me cryin' all of the time

Sat, 06/20/2015 - 17:22 | 6217951 bid the soldier...
bid the soldiers shoot's picture

definitely a golden oldie

Sat, 06/20/2015 - 19:35 | 6218144 smacker
smacker's picture

I didn't know the Mamas & Papas had reached as far as Austria :-)

Sat, 06/20/2015 - 17:16 | 6217944 Trahald
Trahald's picture

Smoke and mirrors; the world will not collapse, the retards will go on governing the countries and the sheeple will follow the propaganda trail.  The Greeks will be better off without the EU, we will be better off without the TTP / TCPIP / IP.  Greece is a great country, it is about time they were again.

Sat, 06/20/2015 - 18:02 | 6218004 Teknopagan
Teknopagan's picture

Appearances are a glimpse of the unseen

 

Anaxagoras

Sat, 06/20/2015 - 17:23 | 6217955 rickv404
rickv404's picture

Utter failure. Raise VAT and business taxes and leave pensions uncut.

Sat, 06/20/2015 - 18:02 | 6218003 I Drink Your Mi...
I Drink Your Milkshake's picture

Give us thuuhh munnnny Lebowski.......

Sat, 06/20/2015 - 18:08 | 6218014 SirBarksAlot
SirBarksAlot's picture

And who knows debt better than the geniuses at JPM?

Let's all go out this weekend and buy some Ouzo or olive oil or a Greek CD.

Sat, 06/20/2015 - 18:41 | 6218062 trader1
trader1's picture

The solution to all problems right now in the financial and economic system is simple.

Cancel all EU-denominated personal (not corporate) mortgage debt.  

 

Sat, 06/20/2015 - 19:16 | 6218119 walküre
walküre's picture

you wish

Sat, 06/20/2015 - 18:53 | 6218081 q99x2
q99x2's picture

So I guess it looks like Greece isn't going to default eh.

Sat, 06/20/2015 - 19:08 | 6218103 GotGalt
GotGalt's picture

It is funny that every Greek citizen quoted for these articles is a govoernment employee.  Guess that is all that is left of the decimated labor force anymore.

Sat, 06/20/2015 - 19:17 | 6218120 Omega_Man
Omega_Man's picture

short the euro

Sat, 06/20/2015 - 19:31 | 6218139 TeethVillage88s
TeethVillage88s's picture

A Little Cover-Up?

A Little Shifting of Blame?

A Little Worming Out of Responsibility?

An Attempt To Keep One's Name out of the News?

A Counter-Intelligence Operation on the people of Greece, Europe, the USA?

Deliberate Lies of Financial Ratings Agencies, Accounting Control Fraud, Racketeering, Mafia Activities, Quasi-Legal-Protection of Criminal Activities?

Rape of Humanity?

Sat, 06/20/2015 - 19:34 | 6218143 q99x2
q99x2's picture

You can get a hotel for $15 a day in Peru with meals included. I think I'd like to visit in the Fall. When the money dries up things get frosty.

Sat, 06/20/2015 - 19:53 | 6218178 brushhog
brushhog's picture

If I were a Greek, I'd have all my assets in gold bricks and I'd be sailing to north africa.

Sun, 06/21/2015 - 09:22 | 6218885 nemesis2012
nemesis2012's picture

But , youre not and dont feel connected to the country...............

Sat, 06/20/2015 - 20:25 | 6218232 1Inthebeginning
1Inthebeginning's picture

obama to make internet gun talk illegal.  https://www.youtube.com/watch?v=Xk5PC30xwys

tpp legislative over reach whats next?

 

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