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Goldman And SocGen Unleash The "C"-Word: ECB Alone Can't Contain Grexit Risks
Unnamed "officials" have proclaimed a new set of Greek proposals received by Brussels tonight as "a good base," according to AFP, and thusly the Euro is very modestly bid. However, both Socgen (without a 3rd bailout of €60-80 billion over the next 3 years, Greek uncertainty remains high and leaves Grexit risk merely semi-stable) and Goldman (a deal will come only after the introduction of capital controls, a technical default on the IMF and issuance of IOUs/and a further build-up of arreas... and the damage resulting from a breaking of the integrity of the Euro would not be fixed by monetary policy alone) leave us wondering just who is buying Euros and US stocks and selling Swiss Francs as D(efault) Day looms and the 'C' word (contagion) spreads.
Sure why not...
A good early start to the rumor mill...
#BREAKING Brussels receives new Greek proposals, which official says provide a 'good base'
— Agence France-Presse (@AFP) June 21, 2015
But SocGen remains unconvinced...
At best, a semi-stable agreement is in the making
In calling Monday’s emergency summit on Greece, European Council President Greece warned Friday that we are “close to the point where the Greek government will have to choose between accepting what I believe is a good offer of continued support or to head towards default”. He further added that “there is still time, but only a few days”. In Athens, the weekend saw a flurry of activity that concluded with a conference call with Prime Minister Tsipras, Chancellor Merkel, President Hollande and Commission President Juncker. Few details have emerged, however, on what was said on the call.
Back in early June, both Greece and its creditors presented proposals for an agreement. At the time, Prime Minister Tsipras was told that any measures replaced must deliver the same fiscal impact. The proposed alternatives have, however, so far not been deemed credible by Greece’s creditors.
Reducing tax exemptions: According to the news flow, the new proposal contains scrapping of a range of tax exemptions and a further reduction in early retirement schemes. The aim is to protect broader pensions from further cuts (the creditors want to see savings of 1% of GDP annually by 2016-17) and avoid a VAT increase on electricity. Furthermore, the creditors want no reversal of labour market reforms. Combined, Greek tax exemptions amount to around €3bn.
A six-month extension: Press reports suggest that in addition to unlocking the remaining €7.2bn of bailout funds, Greece’s creditors are preparing to offer a six-month extension of the current programme, allocating €10bn of bailout funds initially set aside to recapitalise banks to ensure that Greece has sufficient liquidity to meet its obligations until year-end. The Greek authorities fear that a short-term solution would leave the economy in a state of lingering uncertainty that would weigh further on confidence and thus growth. The next batch of PMI data will give an idea of how much damage the crisis has inflicted on business confidence. Meanwhile, bank lending rates remain high, and notably for SMEs (cf. charts below).
CHART
No talk yet of debt rescheduling: An important point for the Greek government is rescheduling of the debt. At the press conference after Thursday’s Eurogroup, President Dijsselbloem not that “We have not discussed this proposal, because the logical order of things is that we first reach an agreement on the terms of fiscal measures, reforms, etc. , before we look into the future. The Greek proposal was part of their vision of the future”. This confirms our view that there will be no “unconditional” debt rescheduling for Greece, i.e. this would come only after measures are delivered and is more likely to be part of the discussion of a third bailout programme.
At best semi stable: If agreement is reached along the lines outlined above, it would to our minds be only semi-stable. First, implementation risks and political risks would remain elevated. Second, negotiating a third bailout programme for Greece is likely to be a challenging exercise. As a result, uncertainty would remain high, leaving Greece at risk of further economic disappointment. We estimate that the country needs €60-80bn over the coming three years, and that is assuming a still fairly benign economic environment and no new bank recapitalisation programme. Given the frail stance of the economy, the risk to our estimate is very clearly biased to the upside.
And Goldman Sachs even less so...
Our central case that a deal will come only after (or thanks to) the introduction of capital controls, a technical default on the IMF and issuance of IOUs/and a further build-up of arreas. The logic is that it is only when the cash constraint is fully binding and associated economic and financial stresses escalate that the Greek authorities would be able return to the negotiating table and compromise with official creditors. With many precedents to point to, we recognize that going into Monday’s policy meetings risks are skewed in favour of a last minute appeasement. This would allow a partial disbursement of funds withheld under Greece’s 5th review upon the passage of new measures, avert a credit event on the IMF and the ECB and buy time for more strategic discussions, i.e. push the problems to a future date. Should this not occur, and the base case be realized, risk would flip in the direction of outright Grexit.
Mapping Market Response to Three Possible Scenarios
To start, it is important to recognize that the financial risk emanating from developments in Greece is very specific. An increase in the correlation between Greek public debt securities and those of other EMU peripherals has not given way to a decline in asset prices of the proportions seen during 2011-12. There are good reasons for this. The majority of Greece’s public sector exposure is now with the foreign official sector (the roughly EUR 40bn of government bonds held in private hands are for the most part marked-to-market). As tensions have increased since the new Greek government took power, private claims against Greek banks (deposits and credit lines) have declined, with the ECB filling the void. Finally, the ECB has also been active in the secondary government bond market, and is expected to absorb between 40 and 80% of the gross supply of Euro area government bonds this year. The main effect of Greece thus far has been on volumes, and market liquidity. This is particularly evident in fixed income, especially in Euro area corporate credit. In our view, Greek risk would materialize on broader asset prices in much more prominent way if the chances of Grexit were to increase.
Our market stance since the start of the second quarter has called for higher core rates and wider, more volatile peripheral spreads as the July bond redemptions approached. Here we map the three possible scenarios mentioned above to market responses, using the average spread between 10-yr Italian and Spanish government bonds to their German counterparts as a gauge (for brevity, we refer to this differential as the ‘bond spread’ henceforth).
The ‘base case’: Should the imposition of capital controls and the introduction of IOUs prove to be the only way to reach a compromise, we would expect the bond spread to drift wider from the current 150bp to eventually as much as 200-250bp. To be sure, a ‘default’ and ‘capital controls’ are now consensus (going by our client interactions, we would say that at least 2-in-3 investors expect these joint events to occur). But by the same token, those anticipating Grexit remain a minority, as most point to opinion polls suggesting that the Greek population still wants to stay in the single currency. The reasons we are more pessimistic are twofold. Capital controls in Cyprus were an integral part of a negotiated package designed to restructure an insolvent banking sector.
On the reverse, in the case of Greece, they would come because efforts to agree on a plan have repeatedly failed. Once cash is blocked and state payments are in other means than the EUR, the distinction between being part of the Euro system and not could start becoming more blurred. Also, the political and social reaction in Greece to a failure to find a compromise is unpredictable. After all, Europe has so far not offered a ‘growth strategy’ for its member states and too frequently remains a synonym for myopic austerity. As the base case unfolds, we think the market would adjust upwards the probability of Grexit.
The ‘accommodation’: Probably spurred by news of a gathering at the highest political level, investors have started to hope that an appeasement is in sight. After all, this would conform to the pattern of Euro area negotiations seen in the past. A compromise could be centred around the structure contained in the 5th program review (e.g., higher direct taxes, some changes to access to pensions, etc) and -conditional on the Greek government passing measures in Parliament - unlock just enough financial resources to allow the government to make payments to official sector creditors during the Summer months and pay wages and pensions. This would probably lead to more strategic discussions over the second half of the year, with no major concessions until after the Spanish election booths are closed. The market would likely salute another ‘kick to the can’ with a relief rally. This could take the bond spread 20-30bp tighter to the 120-130 area, as hedges are covered and quick gains are sought. German Bunds in this scenario would still stay in the 80-90bp range. But without indications on what the strategy for Greece entails, however, we doubt that intra-EMU capital flows and market liquidity would materially improve. The Greek government would still operate on a very tight cash constraints, deposits might continue to decline, and the economic contraction extend.
ECB President Draghi stated at a press conference on 03 June that a ‘strong agreement’ for Greece should have four characteristics: ‘produce growth’, have ‘social fairness’, be ‘fiscally sustainable’ and ‘address the remaining sources or factors of financial instability in the financial sector’. The order in which Mr Draghi chose to order these elements is significant. What, in our view, would meet the criteria for a strong deal is (i) an emphasis on deep structural adjustments and their timely implementation, (ii) realistic growth and primary balance targets and (iii) an explicit re-profiling of public debt, possibly going beyond the promises made to Greece in November 2012. Realistically, seeing this happen on Monday is far fetched, but a move in this direction in coming months could see the bond spread returning below 100bp by the end of the third quarter.
The Road to ‘Grexit’: As discussed previously there is a myriad of possible interim currency arrangements, including dual currency circulation, which would qualify Greece still being formally ‘in’ but de facto having a foot out the door. In the extreme event of Greece introducing a new currency and defaulting on its exposures vs the ECB and the other Euro area member countries, we have stated that the bond spread could widen to 350-400bp, involving yields on BTPs and Bonos of around 4.00%.
A widespread assumption is that if we were to head this way, the ECB would intervene to stem financial contagion in other EMU members. An effective way of doing so would be, for example, instructing national central banks in the core countries to purchase bonds issued by peripheral member states, signalling cross-country risk transfers (currently, each central bank is buying its own debt so that credit risk is not mutualized).
Provided they are pre-emptive, policy countermeasures of this sort would support financial asset prices. But the damage resulting from a breaking of the integrity of the Euro would not be fixed by monetary policy alone, in our view. For all its specificities, the failure to keep Greece in the Euro would highlight the limitations of the growth and fiscal arrangements of the current Euro area policy framework, offer a precedent to other governments (and their oppositions), and crystallize the convertibility risk on all Euro area securities. Institutional upgrades to the economic and monetary union, along the lines of those included in the Four Presidents Report which European leaders are to discuss at the end of this month, would be required to overcome the ‘shock’. A key dimension over which these upgrades would be judged is the degree of ex ante risk sharing among Member States they involve. Examples include Euro area-wide bank deposit guarantees or an embryonic Euro area Treasury.
* * *
Crucially - as we already noted - the most important factor tomorrow will be the ECB's decision and implicitly the potential collateral availability. Before talking heads spout their usual blather on last minute deals and how great they are, perhaps a detailed read of the collateral problems ahead is in order (or - quite simply - you are entirely unqualified to judge the next steps).
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What about the Guardian report of a new bailout deal?
http://www.theguardian.com/world/2015/jun/21/greece-and-eurozone-leaders...
And can ZH use my Tsipras obamicon sometime this week, plz:
http://img846.imageshack.us/img846/8647/tsirpasxgdftw0hedge.jpg
I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... www.earnmore9.com
Throw those pathetic Greek deadbeats out of Europe already.
buy stawks and don't worry bout anything sheep.......
It's funny when the bank can't foreclose and they instead have to loan you the money to make the payment back to them!! LOL!!
that almost sounds like a ponzi
Sitting the batting circle up to bat next:
Portugal
Followed in the lineup by:
Slovakia
Hungary
Croatia
But don't worry, it's contained.
It's fortunate that the IMF already fixed the Ukraine.
Meet the new can, same as the old can.
. . . . if i didn't know any better, i'd agree, kilguy
you're actually more annoying than the guy spamming $7k a month working from home
I don't necessarily disagree with you but STFU
Who are the real deadbeats, the Greeks or the dickheads who lent to a debtor that didn't have a snowballs chance in hell of honoring the debts?
If you want to be ruthless about it all the Greeks have done well. Just keep borrowing and borrowing while there is someone stupid enough to keep lending. The fools, and I mean real dumb assed fools, thought that the Greeks wouldn't default. These dumb asses fools thought that others wouldn't be as ruthless as they. Well, well, well, maybe the Greeks are just playing the game oif global banksters.
By listening to the Big Three (S&P, Moody's, Fitch), the lenders will get what they deserve.
Unless they're bailed out.
Again.
Which is only 94% probable.
Should have called Egan-Jones.
The Greece situation is very simple: Greece cannot and does not want to pay. Consequently, early or later, Greace wil ldefault. Eventually, Spain and Portugal will follow.
These new Greeks are deadbeat cheats. Have nothing in commmon with the ancient Greeks.
Spain and Portugal have more honor than the Greeks. I don't see contagion there.
Greece never had the ability to repay loans-yet they were forced upon them by banker connected people in the previous governments
The International Community Reinvestment Act.
Predatory Loans anyone?
I think dickhead is flattering but am not sure that SHITHEAD goes far enough either. Owe the bank a little money, you have a problem....owe the bank a buttload of money and the bank has a problem...
We are about to leave that reality because the central banks have lifted most of the crap off the European bank balance sheets at this point. Poof they have monetized it all. So now what?
The banking cabal in Europe, et. all has to make sure that Greece looks like a pin cushion in an effort to demonstrate to other Goldman/JPM leverage clients like Italy Portugal, Spain, etc. etc,....that non repayment of loans is very painful. The narciscitic cabal would love to push lots of pain down south. The only mitigating factor is if they push too hard Russia may put on its lilly-white angel cloths and pick up a warm-water port on the cheap. So while the banking issues are managable, the military industrial cabal has yet to sighn off on Greece going to the bottom of the Meditteranean
The Deadbeat Club are ALL who are involved in the European SOCIALIST Union.
But you really have to hand the Grand Prize on a platter to Brussels.
Wolferi believes the "Final Solution" is to throw the Greeks out of Europe. But since they live on the European continent, well...It is kind of funny how the Germans think about Final Solutions all of the time. It is difficult to shed their NAZI National Socialist roots and Gestapo/Stasi Mentality.
The better solution is to throw the Dutch out, especially those who are in Brussels.
See? They have been blowing Bubble Markets and running Ponzi Schemes...for CENTURIES.
Got tulips, anyone?
Yeah. Only National Socialists will place their faith in that...Socialists and fools..but I repeat myself.
"Just keep borrowing and borrowing while there is someone stupid enough to keep lending."
So are you referring to the deadbeats in D.C. or Greece?
It's getting so hard to tell the difference without a program.
You seem to write that same thing over and over, are you even a human ?
Look like a program that send that each time the word Greece or Greek is on the tittle or the text...
I wonder how much semen you can drink before you throw up.
The lender makes the decision to lend "before" the borrower agrees to borrower
the lender(s) knew that Greece couldnt pay.....ever
that is what loan sharks do
to raise more euros to 80 billion - which is what they admit to today - means it will be more - the debt was less than 60% of GDP 6 years ago - mangeable then not ever again
Greeks should walk - let Europe blow up - Greece will then be a minor problem overall
do what Victoria Nuland would do: FUCK THE EU !
go for broke
Wolferl , if you offered a tid~bit of reasoning? I'd gladly up>vote you.
Why does he need to offer any more reason.
I'm fucking pissed and concur with Wolferl
THROW THOSE PATHETIC FUCKING CHEATING DEADBEAT GREEKS OUT OF THE EU ALREADY
Fucking last minute proposal my ass.
Show them the fucking door!
I hear Sinatra's ghost singing High Hopes, "Oops, there goes the global government dream".
Think political, not fiat financial. Greece is a welfare queen and the Globaloney crowd are Ponzi socialists. They cannot exist without each other, then, Tapered Ponzi is an oxymoron, gotta throw in massive illegal immigration to keep the Ponzi going. Many demographic studies have come to that conclusion for Japan serves as the test model for the last few decades.
Therefore, relax, Greece will be the catalyst for all sorts of errant policies beyond our control, and theirs. Greece can't be tossed because the whole Keynesian model will collapse and freedom and libertarianism, supported by sound currencies, would rise like the Phoenix. Scam over.
Either a Bush or a Clinton will preside over the funeral within the next 4 years. Other psychos need not apply. Cashless society, my ass!
@ Yen
We are well beyond reasoning in the Greek case. The Greek proved over decades that they are just a hopeless basket case in Europe. They are just a third world country and worse, the Greeks just have a third world mentality so there´s no place for them in a union of first world countries. I guess even the most delusional greccophile here in Germany and in Europe now gets that. The Greeks and their mentality are like cancer for Europe and we must not allow this to spread and destroy what has been achieved in Europe. That´s why the only solution is to throw the Greeks out of Europe now and forever.
Thank you, Wofie, for the blistering example of "European solidarity".
Funny thing is, when 10+ years ago people tried to convince 'Northern European happy nodders' like you that it's a really bad idea to be in the same monetary club as, among others, Greece, Spain and Portugal, you were laughing your asses off and told those same people to remove the tin-foil hat.
So, let's conclude: if you enjoyed the good times, then STFU and swallow!
P.S. Personally, I'd let Greece default and have you 'N.E. happy nodders' pay for banksters' losses through deposit haircuts a-la Cyprus... As a token of my appreciation for being "vigilant brainwashed sheep".
Solidarity with Greek liars, cheaters, thiefs and blackmailers? No way.
Rolling, is this you?
http://www.toilette-humor.com/funny_work_cartoons/working_at_home/index....
If it weren't for the fact innocent people, many of them suffering through hardship and unemployment, the ones who paid their bills in the past, saved and tried to do it right, I wouldn't pay any attention to this stuff.
The games people play....
I hope this is the real deal and that it leads to a free Greece nation. No more bankers.
Hang the bankers
There will be no last minute deals, no stick-saves, no backtracking, no EU mercy...
Ladies and gentlemen we have arrived: "D"-day is upon us. Place your seats in the upright position and brace for impact cuz BABY, this SUCKER'S GOIN DOWNNNNNNN!!!! YEEEEEEHAWWWWW.
or not....
Expect the EU to cave today.
Caving as we speak.
Banksters will get their due. That is the one constant in the financial universe.
Its a fiat money scheme that must keep expanding to pay the VIG and it will never allow Greece to "grow". Its all bullshit. The "creditors" want resourses and that has always been the case. They think they own Greece and they want their pound of flesh. The "people" behind the curtain and pushing and likely threatening for what they believe they own. This is an old, old system and now they cannot operate in total secrecy as they have for centuries. The gig is up and the whole thing is blowing up. Not just Greece. Its all over the globe and the tremors are getting louder by the day.
If the Greek government had any balls whatsoever they hold a press conference and default on all outstansing debt. They would initially be despised by the people due to the initial shock and suffering but would then be held as heroes, heroes who finally stoof up to the global cabals and said "FUCK YOU".
I would prefer they default, with no "press conference", no public announcements, etc.
JUST DEFAULT.
Get it over with already.
And any Greek who is asked about the default should simply change the subject to ANYTHING ELSE.
Set an example, for the world to follow, Greece.
I'd love to see them send a check drawn on a Goldman Account for the full debt.
Naturally, there would be insufficient funds...but it would make this even more epic.
And the $35 overdraft fee would be hilarious.
cannot default, they do not generate money for themselves, so they borrow money.... if you default, you have no more debt, but still not money to make country working, so, what remain to do after default... exit or not.... borrow money again, whatever the form or name used... it is endless problem
they just want to set a stable infinite digging way to maintain the whole plate stable.
such affair will go for decades, picking on its own way other nations until the request is globaly superior to the offering, then, you got a global reset with masive boom and what some call global civil unrest.
expect it around 2030-2040. you have time.... political time is slow as a penis entering a pussy for the 1st time, they like to dilate the pink before hammering like crazy.
The Greeks have Gold.
A Gold Backed Currency, even a Fractionally backed one, will be the ultimate slap in the face to the World Central Bankers...
It will be hard to justify the killing of Tsirpas if he tries it. But the USA murdered Qadafi when he attempted it in Libya and North Africa with a Gold Backed Dinar.
The Banksters hate Gold because it exposes the fraud..the fraud happening in Washington, New York, London, Brussels and Berlin.
Fuck the EURO, fuck the Nationalists, the Socialists, the National Socialists, and especially fuck the Central Banksters. Hoping for the Greek Default as it will bring the whle God Damned Ponzi scheme down and consume it in a raging fire.
The people who support Central Banking need be lined up and shot for the thieves that they are.
If we survive this then the War Crimes prosecutions here in America and elsewhere will be fun to prosecute. I believe the guillotine to be the appropriate penalty for the likes of Wolferi and his minions.
I would prefer they default, with no "press conference", no public announcements, etc.
Au contrarie.
Nothing needs to be hidden. Will anything be hidden on Judgment Day? All will be revealed. Only those who have done wrong seek that it be hidden.
Likewise that announcement is necessary for the CDS to be activated. There will be no excuse not to activate them. The shock will send the Derivatives into a spiraling Meltdown and we can be done with the fraud, once and for all.
Let the whole damned FRAUD implode. Do not give any support to the corrupt. They deserve the Hell which they have created from their scheming.
That announcement is necessary for the cleansing to begin.
Well stated, Indy.
The trustees are merely shifting the pea under new a shell. Peasants won't see the magic trick. Until they plea for their life and forgiveness.
Here is on example of someone not accepting TARP Funds.
http://www.scotusblog.com/case-files/cases/ford-motor-co-v-united-states/
Devo - Whip It (Video)
http://www.youtube.com/watch?v=IIEVqFB4WUo (2:46)
An old favorite.
My "Goldmean weekend wish" moves a step closer. If Goldmean Suckers goes down it will be a blessing.
The "C" word? Did they call Merkel a cunt?
Rand Paul is done
http://m.youtube.com/watch?v=RyJBZYz858M
The link is to a video of Paul Ryan.
Yes it is. God what an asshole he is. I don't get the Rand Paul is toast statement. I personally don't give two shits for either Paul or Ryan but Man Ryan makes me want to puke he is such a dipstick. I'd say Ryan will be beat by Paul not that it matters as neither of them stand a chance in hell of becoming the Republican candidate.
Relax people. You aint bankrupt 'til you're super-duper bankrupt, like the United States.
Without the FED swaps, - the European Central Bank and Drachhi are full of crap. Germany cannot carry EU financial contagion alone.
That is the ultimate end game.
This circus is for Spain and Italy.
Again...if the borders start going up the growth will go down.
"Greece" to me is more like an idiom for Europe as a whole than meaning anything about Greece and "the global economy as a whole."
Greece is absolutely contained within the EU and purely an EU problem.
No need to wonder "just who is buying Euros and US stocks and selling Swiss Francs".
It's Ma Fed of course.
The same guys that are buying yen. It's risk OFF.
If you're hedged , short the carry trades. You're probably (buying calls) on the opposite side of the trade.
Hey Yen...long time....whatcha shortin and long-in?
sHORT $USDX. Thanks for the kind comment.
I like a short gbp/usd scenario. The long term averages have been tested twice over the last 3-4 weeks.
If you really want to get exotic?
The spreads(pips) are wide. . I like eur/aud and gbp/jpy and gbp/aud. These trades aren't for the " feint of heart".
UST yields taking it on the chin tonight. Flight to safety is in full swing.
C word? Merkel “Can’t Understand Normal Thinking”?
Nothing will change and we will still be talking about Greece in December come the FOMC mtg. Greek people will have taken all their money out of the banks, even w/capital controls, if they have to stand in line for $100euros per day until grexit happens by becoming a suburb of Germany.
deadline deadline deadline rumour 15 pt jump in the /es. over and over and over for 4 years. forgitaboutit. boring as sheep shit
Greece default, if not this week, will be only a matter of time, and it's for sure they will leave the eurozone. It shouldn't have joined in the first place as the countrys balance sheet was way out of line what was required, but due to the magicians and their "Abacadabra" of Goldman Sucks it was all very well fixed. (at a very good profit for the Sucks boys ofcourse). The following is a documentary on how all was constructed.
https://www.youtube.com/watch?v=QWDKK0mpDSo
(The hole eurozone project was forced down our troats. In The Netherlands, over 70% of the people voted Against joining, but as "good" politicians behave,they didn't listen to the people who elected them.)
As for the Greek people: I sure hope PM Tsipras has the balls to stand up against the Troika and all of its criminals and leave the failed eurozone-project.
Sure, it will be some very tough years for Greece, but eventually they will be far better of while the rest of Europe will collapse even further in misery.
Time will tell who was right just from the beginning.
It appears Iceland is progressing nicely...
The banksters have been pushing this scam since 1649; Will this be the end of the line?...
Cowardly Germans will taking their marching orders from flatulent Central Bankers and strike a deal no matter how bad.
Until Germans vote for the national alternative that means NEIN when they say NEIN
80% of German parliament is saying STOP ELA NOW and NO FUCKING 3RD BAILOUT EVER
So this is the end of the fucking road for fucking Greece.
Let 'em eat feta.
Feta > Fiat
So the focus has shifted once again. Where to run and hide where? Haven’t you heard about “The Plan B”?
Ten people and resources to feed only nine. What happens to the tenth and why?
If you are not solving this problem then which problem are you trying to solve?
Utopia – A bliss or a curse? : just a thought from thinair
If they could make a series of this ' is she or isn't she ' then it would probably be the longest running porno evva.
I feel for the vested interests, all that tossing and tossing, fucking tossers.
The powers that be want to keep focus on Greece because it's not economically relevant. Once focus gets off of Greece it will then move to other parts of the world, ultimately including Japan, Europe, the US and everybody else with unpayable debts.
This can has been kicked before and I fully expect it will be kicked again this week. What the central bankers learned after Lehman Brothers was that nothing can be allowed to fail, otherwise there will be contagion which, in reality, is just the market trying to clear itself of what it already knows to be ultimately unsustainable.
Ireland and Spain will be looking for early meetings, with Spanish Elections 6 months off. Podemos will be onto Mutti and Drughi half an hour after the NEW DEAL FOR GREECE.
WE need a WAR to take our minds off of this Punch & Judy Shitshow. Oh yes and i can think of a C word i could use for Goldman.
CNBC, Bloomberg, and FT will have reporters on the scene tomorrow
Key & Peele - Pegasus Sighting http://m.youtube.com/watch?v=7uG9PGqaWeoHappy Father's Day Zerohedge members!
I, for one, had a fantastic Father's Day.
Thanks!
I heard a Greek economics Professor Status tell Brinker that the Greeks have been broke since they won their independence from the Islamic Ottomans in 1821. No exports. Only the promise of a Russian pipeline. Take that, Euro and Nato. Is this the 4th or fifth bailot? Lost track.
"leave us wondering just who is buying Euros and US stocks and selling Swiss Francs "
Most likely the people doing the fear mongering, because there isn't a hope in hell Greece will leave the Euro anytime soon; the Greeks have been sussed out completely - either face chaos or accept the reality which it created for itself - their only card is a de facto threat; to damage Europe... not a great strategy really when looking for favorable terms. If you are going to quit something, and see a clear benefit in doing so, then you just go ahead and do it, you don't enter a prolonged bargaining scenario because at best that means you are in two minds, and if you are in two minds you converge on the safest option - stay in the Euro, better the devil you know.
At worst it means they are playing a desperate game where the only card is mutual destruction; the Greeks like to think they have big balls, but it's not the 6th century, they are deluded paupers with nothing but a begging bowl and suicidal threats. If those are the qualities Russia looks for in a debtor, god help it. Time to stop yapping and pay the piper.
Why should a German give two shits about how the Greeks feel about the Germans?
The deadbeat cheating lying Greeks don't give a shit about how anyone thinks about them!
THROW THOSE PATHETIC FUCKING DEADBEAT GREEKS OUT OF THE EU ALREADY!
FUCKING LAST MINUTE LAST DITCH ATTEMPTS AT PULLING MORE WOOL OVER OUR EYES!
No mercy. No love lost. Fuck 'em.
You do realise that you are defending the worst group of thieves and pathological liars in the history of human civilisation, don't you? And you believe their stories? Sad.
If we can't get Greece kicked out then it's time to prepare for Gerxit.
Germany needs to leave the EZ
I'm not defending the banksters. The Greeks could send the message to the banksters but they prefer to be eternal debt slaves.
Last minute proposal my ass.
Yes you are defending the Banksters.
In fact you are defending Nationalism and Socialism as well.
The Euro is FRAUDULENT. The European Union is a LEGAL FICTION.
It needs to crack up and self destruct. That will result in the DESTRUCTION OF ALL OF THE CENTRAL BANKS.
You are defending the banksters as you seem to be somehow INVESTED.
I reside in the USA. By geographical, and another ACCIDENT, I was BORN HERE.
Now I will not lose one moment's sleep if the Federal Reserve imploded and the USD became worthless overnight...even though I have USD.
Principles over profits seems to have been a forgotten attribute of business world wide.
The European Banks defrauded the Greek people by offering loans that they had NO ABILITY TO PAY. That is they had the Greels SELL THEMSELVES INTO BONDAGE, SLAVERY. Debt is enslavement. (And the Europeans consider themselves somehow "civilized"? That is so 18th Century.)
In response the Greek people are defrauding the European Union Banks through refusing to pay the debt...which they cannot.
Well if you are going to own slaves, be a slaveowner, you do have to care for your chattel. Otherwise you will get a slave revolt. Hasn't History taught you anything? That is what you are getting...a SLAVE REVOLT.
Now another option is to decimate them, kill off some of the non productive herd.
Adolf Hitler tried that with killing off the Useless Eaters in his National Socialist experiment. He killed off the Mentally Retarded, the Mentally Ill, and even wanted to kill off the non productive elderly...in the name of efficiency.
But I digressed a bit. It was a necessary digression to DEMONSTRATE that you are DELUDING YOURSELF when it comes down to your civilized "Humanity" because nothing has changed.
And in the long run you actually support it...until it happened to you.
I know that because Austerity is just another word, a EUPHEMISM, a nice way of saying, STARVATION. And that is what you want to do.
Why aren't you honest about it? After all that is who you are. But you are just as dishonest as Wolferi in that aspect.
That is what Socialism is about after all.
And you? You have not abandned your socialist ways. You sit here and defend socialism...in many other posts about many other topics. I have read what you have wrote over the years.
So, anyway, the Fraud of Goldman Sachs, of JP Morgan, of Douchebunk, of Bundesbunk, of the IMF and many others perpetrated upon the Greeks have caused this.
And FRAUD begets FRAUD. (Really it could not have happened to a more deserving lot.)
As far as I care the whole God Damned system can burn down. In fact because of the fraud and corruption it NEEDS TO BURN.
And I will do everything in my limited power to see that through to fruition so help me God.
Understand?
True enough. The EU was so excited to get Greece in the EU that they invested QUITE HEAVILY in Greece, which had not collaterol except it has been the "Cradle of Civilization." That and 5 dollars will get you one of Starbuck's cheaper coffees.
Who gives a sh.. about collateral? When needed, THEY had broken every rule or contract. They will bailout Gr once more, without Tsipras making any real concessions.
According to the latest news, Greece PM Tsipras's spinal cord was removed with surgeal precision by the Troika yesterday. While at the operation table, they also decided to unman him by removing his balls so in future, Tsipras will be a puppet of the EU, ECB and all the other Criminals in charge.
Funny, but I'm sure they are trying everything they can think of. Stay away from nail guns and get a food taister.
https://www.anony.ws/image/DQAN