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The ECB Suddenly Has A Huge Headache On Its Hands
Last week we reported that as a result of the relentless surge in the Greek deposit flight, which may finally end tonight if, as now appears almost certain, the Greek government imposes capital controls, the ECB's claims on the Greek banking system have now surpassed the total amount of Greek deposits...
... when one factors in some €38 billion in collateralized EFSF bonds and other collateral usage.
We previously explained that on the surface, this is terrible news for Greece as it implies that the moment the last linkage between the ECB and Greece is severed, Greek deposits will have to undergo a massive haircut as without ECB liquidity backstop funding the banks at ridiculously small haircuts on what is essentially worthless collateral, the Cyprus "Plan B" will be immediately imposed.
However, a quick glance at a different balance sheet reveals that a full-blown Grexit with all bridges burned between Greece and its former "irreversible monetary union" implies someone else may have an even greater headache on their hands. The balance sheet in question: that of the Eurosystem in general, and the ECB - which is the anchor behind the Eurosystem and the Eurozone's official monetary authority - in particular.
The chart below compares total ECB claims to Greek banks (excluding SMP purchases of Greek bonds) side by side with the latest total Capital and Reserves of the Eurosystem as of June 19.
Incidentally the chart above is why earlier today Varoufakis said that "if ECB were to stop support for the Greek banking system would mean that Europe has failed." Because if indeed the ECB were to pull the carpet from under Greece as it hinted it would do on Tuesday when the Greek program runs out, when it froze the Greek ELA despite the ongoing Greek bank run, it would promptly set off a chain of events that would not only crush the Greek banking system but destroy any credibility Greek sovereign collateral had as a state, impairing all Greek national and corporate collateral, including bonds and loans currently held by the ECB, to zero.
It would also mean that as that €126 billion or so of total ECB/Eurosystem claims on Greek banks were "charged off" in case of a terminal Greek "event" then the entire ECB capital buffer would also be wiped out, leaving the ECB with negative equity. Translated: dear Eurosystem members: we need more cash.
And yes, while in theory the ECB can always print more money (and it will, in fact as we first showed Goldman's entire play has been that the ECB wants a Greek default precisely so it can boost its QE, and print stocks to new highs), an event such as this may well crush what little confidence the ECB has left: if not so much with Germany, whose commercial banks are well capitalized, but with the rest of the periphery, leading to a slow at first, then quite dramatic bank run across Italy, Spain, Portugal, Ireland and so on, in other words all those countries who have yet to address their €2 trillion bad debt problem, which the ECB eagerly brushes under the rug with every single stress test.
Finally, keep an eye on that old favorite, Europe's TARGET2 balances: if indeed Greece is kicked out, watch as the imbalance promptly blows through all time high levels, and Germany is suddenly left on the hook for perpetuating an "irreversible" monetary system which just became very much reversible.
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This is exactly why I said they cannot allow Greece to leave.
I just pulled out an additional 1500€ in cash -- in Germany. For all my other ZH readers in Rainbowland, yanking some cash out of Rainbow land banks right now might be in your best interest.
Tyler -- I would start monitoring flight aware, to start monitoring flights other than retail commercial into Greece tonight.
All my EU über Alles koolaide drinking German friends are going to get a crash course in what Target2 actually means.
Here’s another interesting bit of non-MSM news:
Today in Argentina, a federal court arrested $156 million and other assets belonging to British and American oil companies and ordered them to immediately halt any and all work on the Malvinas Islands (a.k.a. the Falkland Islands) and its territorial waters.
This decision re-asserts Argentina’s sovereignty over the disputed islands.
Looney
Cash is easy, just press the print button.
But confidence is delicate and easily lost. System built on the great CONfidence
"That the power to tax involves the power to destroy; that the power to destroy may defeat and render useless the power to create; that there is a plain repugnance in conferring on one Government a power to control the constitutional measures of another, which other, with respect to those very measures, is declared to be supreme over that which exerts the control, are propositions not to be denied. But all inconsistencies are to be reconciled by the magic of the word CONFIDENCE. Taxation, it is said, does not necessarily and unavoidably destroy. To carry it to the excess of destruction would be an abuse, to presume which would banish that confidence which is essential to all Government." - John Marshall
...hmmm, the "excess of destruction."
I think the colors of that chart show that the next domino to fall might be Italia
I agree F0ster. God help us all.
No. Translation: The EUROPEAN CENTRAL BANK IS INSOLVENT.
A similar event right here in the USA was REPORTED by the St. Louis Federal Reserve, in February, 2008, when OVERNIGHT, the "capital buffer" MEANING FRACTIONAL RESERVES, FELL OFF THE FUCKING CLIFF.
Those "RESERVES" DECLINED from an average of $20 Million per Bank to NEGATIVE $30 Million per Bank if my memory serves correct...and it usually does.
And...well...gee....golly...What happened afterwards was a CASCADING SERIES OF BANK FAILURES, QUASI GOVERNMENT HOUSING FINANCE FAILURES and with the CRESCENDO of the failure of an INSURANCE COMPANY, AIG, that insured TITLES TO HOMES...
...and THAT STILL HAS NOT BEEN SORTED OUT from 2008.
WE had a CREDIT FREEZE back then...GLOBALLY...as no Bank could not have TRUST that any other Bank extended an overnight loan would exist the next day as they may also have been INSOLVENT.
And if you really think that a Bank Holiday and Capital Controls will just be restricted to Greece then you are smoking way too much HOPIUM.
The stupid myopic people at the European Central Bank have just NUKED, NOT ONLY GREECE, but themselves. And when ECB Banks start failing, since they are so interconnected to AMERICAN BANKS, the cascading failure events will HAPPEN HERE ALSO.
Really...Just what did Greece have to lose? NOT ONE DAMNED THING. What did the ECB have to lose? The ENTIRE GOD DAMNED BANKING SYSTEM.
So you tell me which Bank over in Europe is INSOLVENT and which Bank is not?
You can bet that EVERY SINGLE BANKER IN AMERICA will be asking the SAME GOD DAMNED QUESTION anytime they are asked to extend an Overnight Loan, come Monday Morning. That is a GOD DAMNED CERTAINTY.
Whether or not a DEFAULT IS DECLARED IS IRRELEVANT..IT IS MOOT.
AND YET I AM CELEBRATING THIS. YES I AM CHEERLEADING THIS. The FRAUD and CORRUPTION is coming to an end.
Of course the consequences for many will be fatal as they are totally dependent or are invested into the system; and; they are totally unprepared for this life changing event.
And of course it will take time for the manifestation of all of the consequential events.
For instance it took from February, 2008, to September, 2008, for that manifestation of events from the Federal Reserve Banking System's INSOLVENCY.
You have very little time left to prepare. VERY LITTLE TIME.
Do you get it yet?
WAKE THE FUCK UP.
Sjeesh Tom, I agree that it's all fucked up, but f.f.s. take a chill pill and wipe that foam off your mouth.
Tall Tom is the kind of man I want on my side if things ever get a bit tense.
I would want him on my side just after things had already gotten a bit tense.
Nah, to bold
It's a TT weekend nonetheless
You agree that it is all fucked up? It is a little worse than that. LMAO.
As for being "chill"?
Just what did you not understand about my statement about celebrating and cheerleading the destruction of Fraud and Corruption?
Hell. I am throwing a party.
No one lives forever.
https://www.youtube.com/watch?v=-CZCKP-H4C8
It is a Dead Man's Party after...
To the junker...I saw it in 2008. I see it now.
It is too bad that you cannot take time to invalidate any of my premises.
Or do you support Fraud and corruption, are INVESTED INTO FRAUD AND CORRUPTION, CELEBRATE FRAUD AND CORRUPTION, and are just too much of a pussy to make a stand on your support of that?
So you hide behind a junk? Bring them on. The crew here needs to know just how many are Fraudulent and are Corrupt, you wolf in sheep's clothing.
You're right about all of it, and your tone is appropriate to what you're saying. I tease because I love.
A key point you made that some might miss is that the trigger events are not immediately followed by the result. As you say, we spent February through September 2008 just standing there with our dicks in our hands staring at the obvious collapse of our banking system, and then in late September all of a sudden everybody started freaking out. Since then, all we've done is paper over the collapse, not address it in any real way.
So when the next unmistakeable sign of collapse happens, and it might happen in about 12 hours, it may very well take until January for people to start running around freaking out, though it would have been obvious the whole time.
I think a lot of people are expecting to see a news item while eating their cornflakes, and then immediately the power to go out and people resorting to cannibalism before lunch.
Its a shame the ECB didn't consult with you first, so all this could have been avoided. I guess they misplaced your resume. Oh well, next time.
I will not ever have given any consultation to the corrupt and fraudulent.
I promote the COLLAPSE and DESTRUCTION of those that are.
My resume was not ever submitted and it will never be.
Perhaps you might want to buy a franchise to Guillotines ~R~ UsTM and Gallows ~R~ UsTM?
I believe that is the new growth industry...Sales will be booming.
I was thinking about announcing the launch of the IPO here on ZH. I believe that I will have many buyers.
I'm still reading but have a tangent. Weird list in many ways on Wikipedia. But Greece is up there.
Gun ownership by country, per 100 people, Rank
Cyprus, 36.1, #5
France, 31.2, #11
Canada, 30.8, #12
Austria, 30.4, #13
Iceland, 30.3, #14
Germany, 30.3, #15
Finland, 29.1 #16,
Oman, 25.5, #17
Bahrain, 24.8, #18
Kuwait, 24.8, #19
Macedonia, 24.1 #20
Montenegro, 23.1, #21
New Zealand, 22.6, #22, Small firearms not permitted to general public. 26.8[2]
Greece, 22.5, #23
UAE, 22.1 #24
Croatia, 21.7, #25
Panama, 21.7, #26
Lebanon, 21, #27
There is a topic which I have discussed with my Father about.
Where are the Capital Reserves, which kinds are they, can we quantify the requirements, and stratify them for bullet charts or discussion.
Basel III plays into this.
- There are Bank Reserves deposited at the US Federal Reserve
- There are Fractional Reserve Deposits held as Deposits on which Banks make Loans
- There are Capital Reserves for the Bank itself which are separate from deposits, and which could be located in different places or accounts
- There are Capital Requirements which maybe different or the same from those at the Federal Reserve and which exist at the Bank or in an account or place of their choosing
All I'm wondering is if there are 4 different Capital Reserve Accounts, what are they, and what are the percentages to deposits that they operate under. Basel III would seem to be the standard.
I replied to you on the other thread.
With the Fraud and Corruption I cannot have any trust in the veacity of any institutional reports due to the massive institutional corruption. Frm the fixing of LIBOR to the constant manipulations of the PMs, and then back to the MBS scandal we have not a clue as to how many multiple accounting entries exists.
But with a Derivatives Market that is 15 times that of the hard goods which actually exist then it is not to hard to come to the conclusion that many instances of double accounting has taken place.
I just do not know, sir. I do not believe it possible to know.
But what I do know is that I cannot trust them.
Tom, Sir, I believe you. I don't have the answers either.
I will push myself to learn about this banking system.
@Looney, Black Goo, Texas Tea, eh?
So, losing a war to the British wasn't enough to satisfy them and they just had to antagonize the US at a time the US government is itching for a war to divert the attantion of the sheeple? Brilliant...
Here is a very tired looking and frustrated Wofgang Schäuble on South Germany's ZDF: http://www.heute.de/schuldenstreit-mit-griechenland-finanzminister-wolfg...
"They cannot allow Greece to leave."
"They" are the ones orchestrating this.
Time to wake up.
I am fully awake. Thus if Greece does leave it is by design to accomplish an objective of "theirs."
Whomever "they" are is unknown, some call them the NWO, others call them Bilderbergers -- I call them evil fuckers.
This idea makes sense; I think the US is trying to destroy Europe with the goal of eventually taking all of Russia's resources.
Not only completely orchestrated, but this is why they planned and moved forward the Jade Helm exercises; we have been set up and sold out, anyone not liking that will be controlled.
There's obviously a plan for the Elite when they can't control it anymore, but I don't buy that every event is orchestrated. Sure, Poppendreahu (however you spell it) was just another technocrat, but Tsipras and this movement seems to be the real thing. They've just been playing ball long enough to squeeze every last cent out of the EU. It was just a matter of time before someone pushed back against TPTB. As far as Jade Helm goes, it may be nothing more than crowd control when the Shit Hits the Fan, and though more or less nefarious might be nice to have around if it was used to control roaming mobs .. Then again, they may be the roaming mobs
All that has to happen here is for the Bank of Greece to print (in paper and electronically) a boatload of euros.
I f Greece were to leave the euro, the larger countries in the euro would implode. Germany, France, Italy and Spain would enter recession just like Japan did and stay even longer.
Germany would suffer the austarity they imposed on Greece untill the people voted in new actors. Same with Spain, Italy and France.
good one!
(is he surrendering or is he scrambling - like the rest - to be greece's friend now? - or he might just getting ready for a cheap vacation in the sun:-)
The Vulture has landed.
I bet Greek realtors are licking their chops just waiting like vultures for the housing reset.
Will the Greek people allow the euro banks to foreclose on 100000 homes? i doubt it....keep your home and increace Drachma denominated property taxes....have a euro mortgage bonfire party....ignited with olive oil
Been doing exactly that since Cyprus HT.
I still have too much in various bank accounts though, I was expecting another few months.
All the false flag bank cyber attacks were lined up in advance by TPTB, as cover to lock down
the system.For our own protection of course, while they rob us blind..
Doesn't hurt holding cash, gold and silver. Just in case.
You are not seeing the situation properly.
Change your mindset to: As Germany, what do you need to do to ensure your currency (the Euro) remains viable and is trusted as much as the old Deutsche Mark? Then do the same for Netherlands, Luxembourgh, Austria, etc.
When this is all said and done, the Euro will be a powerhouse currency composed of only the member states that before the Euro knew how to balance a budget.
Getting Greece out is the first step. Like walking into a room of conspirators and shooting the ring leader in the head. Odds are high that the others in the room will clean up their own affairs and fall into line.
Germany and the productive countries of Europe need Greece out (they can't reform) and it needs to send a loud message to Italy and Spain that they have a narrow window of opportunity.
One thing is for certain - Podemos of Spain is dead as a party. Wait until the people in Spain see Greece turn into a country with per-capita GDP below Subsaharan Africa. The Spanish peope will see what Syriza did for Greece and run from Podemos.
"The Spanish people will see what Syriza did for Greece and run from Podemos."
Or the anarchists will burn Spain to the ground, with the immigrant's help.
There isn't enough troop strength to go around.
The Lucies motto is, "If we can't have it, no one can have it". The people at the bottom feel the same way.
Good luck to the innocent in the middle.
"Good luck to the innocent in the middle."
you mean the fucktards that think their vote counts and continually vote for their own demise ? LOL and fuck them too.
I never include those fucktards but good point.
Need more cash?
START the (printing) PRESSES!!!
After all, what's a few hundred billion among (bankster) friends?
Methinks Deutsche Bank could be about to get a nasty lesson in derivatives.
No wonder the ECB kept kicking the can
When it is no longer possible to sweep
the massive problem debts under the rug…
Go long on paper shredders. Winks.
Boiler Room "Reco" Scene - YouTube
You could always do a reenactment of WT7.
but in order to do that, they'd have to have singular copies of all incriminating evidence in one location...
jeez, kinda like all those SEC investigations into Enron that had only one copy in building 7...
or the singular copies of stuff destroyed in the pentagon
and hell might as well do it somewhere where the gold's kept, so your friends can get theirs out and your not so friends get told sorry it disappeared into a hole in the ground...
So what was kept in Bldg. 6? The one no one wants to talk about?
Dupe.
Ctrl+p.
Works in Muhrka!
Do not worry!
This is just like Lehman in 2008 when the Fed opened up the swap lines and provided liquidity assistance!!!
Everything is still the same today and WE ARE SAVED!
We're all Greek now!
Can you spare a € to a broken down Central Planner?
Greece still has Euro printing apparatus in country. All they have to do is seize it and modify the die a bit and they can print Euros that appear to come from anywhere in the EU.
If the EU fucks Greece, Greece can fuck the EU, and HARD. I suddenly wonder if this isn't part of the reasoning behind the push for a cashless society.
If they were crazy enough to try that, you would see goose-stepping German troops on the main square in Athens within 24 hours.
Getting ready as we speak.
Germans have become weak and soft. The Yanks will have to do it themselves.
Yes, the Yanks will send their Bi/Les/Gay/Trans brigades. Fresh from 16 trips to the sand box.
Are the red and white stripes going to be replaced by a rainbow?
1 small problem, that constitute an act of war.
Giving the eu country's a reason to invade Greece, not a smart move.
as though, as has been oft recently demonstrated,
a "reason" could not be fabricated (e.g. "humanitarian", "mushroom cloud",
" Russian aggression", etc.)
Short of dropping nukes on population centers, nothing
seems to be an act of war anymore, if done by nations states.
Some fanatic beheading a journalist however, does count for some reason that escapes me.
The new management in the lunatic asylum we live in, hasn't improved it.
Maybe the Halperidol has run out ?
i had to look up Halperidol, but seriously.....
The ILLusion is strong and crazy....
Sadly, I had a close relative that required it.
Four separate personalties that argued with each other in real time.
One could turn quite violent.
kinda like John Roberts.
Out of patent ,so no money in it, is probably the reason.
Keep in mind it won't be the banks that get
hit when the Greek thingy blows. The banks
had these assets bought by ECB national
governments/ ECB/ IMF...
The key here is the Too Big To Fail paradigmn.
If a TBTF is allowed to tank, the derivatives market
starts to umwind... and THAT is uncontrollable.
So what do you suppose happens in the derivatives market
when a nation(s) ... note the plural(!)... gets it in the
neck over the Greek default...
Don't think tooo hard here...
THIS IS A BANK ROBBERY!
SHUT UP OR THE ITALIAN GETS IT!
Had no idea there were that many Italians
... on Wall St...
!
Bend over please, Trokia sticking up your asses June 30th. You are on your own motherfuckers.
Well, yeah. The thing about abstract debt-based fiat money in a fractional reserve system is that it doesn't really exist. That's the beauty and the curse of it. Money doesn't exist until some debt is created that calls it into existence, under this system. So that's pretty groovy if you always have it so other people are asking you to create some money for them, like you're summoning a fucking genie or something, and then they have to figure out how to pay you back with money they have to go get from somebody somehow.
But as soon as they say, "No, fuck you, the genie didn't do shit for me; I'm not paying you for that;" well, it's all different then, isn't it. Because you never actually had any of that money in the first place because it didn't ever really exist, did it. And you lent it out another 9 times, didn't you. You're fucked. You can bluster and puff all you want, but if you aren't willing to just kill the shit out of the other person for real, or send in tanks or whatever is appropriate in such a situation, you're not getting the money you'd planned on and probably already pledged to somebody else.
Yeah, the EU needs the Greeks more than the Greeks need the EU. If it weren't for the Greek Elites wanting to be able to use a stronger currency to be all rich and shit outside of Greece, the Greeks would still be using the worthless Drachma, pretending to work, pretending to pay taxes, and have a slack and inefficient economy. In other words, they'd be just fine, like they've been since, oh, Socrates drank the hemlock. So the average Greek didn't get shit out of all of Goldman Sachs' derivatives flim-flam to make Greek public finance look like it passed Maastricht, and he sure as hell isn't going to get anything out of impoverishing himself to pay the imaginary debt to the EU and the Banksters.
Far better for the Greeks to walk, bankrupt out, bring back the Drachma, go full Iceland, and go ahead with any deals that might pop up with Putin, as long as they don't have to incur any debt over it. Within two years, Germans will be back in droves to drink ouzo and sizzle on the beach because it's gorgeous and warm in Greece and with the shitty Drachma, it would be really god-damned cheap. So, as I said, it'll be like always.
The idea that this even looks like a crisis is a testament to the propaganda skills of Global Finance. They thought they were going to pull off a big heist and now it looks like they're not. Boo-fucking-hoo.
This is what bothers me about people always complaining about the Greeks "not paying their bills". Such people do not and maybe can not understand that the system we have is designed such that at any given time SOMEONE must be unable to pay their bills.
"If it weren't for the Greek Elites wanting to be able to use a stronger currency to be all rich and shit outside of Greece"
Exactly, all the elites have been well indoctrinated with the neoliberal 'grow the pie' ideology, and of course the only people taking bigger bites from this bigger pie are the elites themselves. Today we have elites arguing over who gets the last bite, using the people as hostages.
The big problem is that as soon as Greece DOES exit Europe, then of course there will be sudden terror attacks there, probably plenty of media reports of Greek nationalists lopping off heads, throwing gay babies off of roofs, a veritable Euro-ISIS, but made up of white people. All the sympathy cards will be played, make no doubt. Greece will go from lazy deadbeats to violent dangerous medievil existential threats to 'the civilized world' overnight. NATO will probably have to invade to save the women and children from all the attrocities, and Greece will just end up under foreign administration anyway.
Just waiting for the next false flag event. Any guesses?
I would have thought having someone assassinated at a certain event last week would have been the perfect excuse to drop the hammer on the rest of us, well................those that live in the South anyways.
Kept the news off the House voting to eliminate US sovereignty.
Maybe they know the South is about fed up and has a bite. Robert E. Lee could have won had he fought a guerilla war. Who concocted that crazy scheme to stand in a line and decimate each other? The one with the most men, money, and cannons always wins those.
West Point still doesn't know Jack. The next wars will not be dick measuring contests. FSA government schools aren't producing the talent to win an intellectual cyber war. The FSA is the world leader at sociology, communications, child development, art, hotel management, false economics, everything that doesn't add to the betterment of mankind.
Since they're really pushing the racist issue,,, I wouldn't be surprised to see another fake black church shooting with the 'killer' wearing a grey confederate uniform.
That should just about do it.
http://rt.com/usa/270142-white-americans-terror-threat/
Even a lot of the black people in the US aren't buying it. LBJ was wrong by about 45 years.
If the past is any guide: markets will be saved by an announcement; announcement will be denied by Greeks; markets will not react.
What makes you say that? Oh, because it's happened about every weekend for the past, oh, 5 years? Is that why?
There's a reason humans are prone to normalcy bias. It's because it's usually right. We like to think we're so clever and originally but we usually do the same old thing, especially if it's always worked so far. The time it stops working is a real bitch because we usually don't bother formulating a Plan B when Plan A is so handy and reliable.
And you're right; there's no particular reason to think this is the time the plan stops working.
TWO THINGS WILL HAPPEN IF GREECE WERE TO DEFAULT:-
(1) QE INCREASE BUT AT LEAST 123 X 5 BILLIONS
(2) PARITY EUR USD AS WE PREDICTED 4 MONTHS AGO
BOTH GREAT BOOST TO EQUITY MARKETS YET AGAIN
GOOD LUCK EVERYONE
The only thing happening is US Financial Authorities suddenly appear to be playing the role of "Monetary Soup Nazi."
Control-P tomorrow will be upgraded to Out-of-control-P.
NO DOLLAR FOR YOU!
Move along...
With enough media support, they can carry this charade on for a while.
"Those lazy Greeks!" As they kick them out and impose capital controls.
Then "Those lazy Portuguese!" as the game rolls on, just keep up the evening news about the "lazy" so-and-so's while pretending your E.U. country is hard working and responsible.
Treasuries raided, "stability levies" (theft) for "patriotic" reasons to "save the Euro and the E.U." for "the children".
Oh, sure, no reason to think this won't go on for a long time. I'm a hard-working guy who handles all his responsibilities but has a tough row to hoe. My brother-in-law may seem to be in exactly identical circumstances, but you don't see; his problems are due to the fact that he's a lazy irresponsible fuckup who can't do anything right. Just as Mell Brooks said, “Tragedy is when I cut my finger. Comedy is when you fall into an open sewer and die.”
Knowing that people tend to be like that, Media and Finance will have us all sneering and giggling with our own virtue and schadenfreude while they loot up everybody. And then everybody will point and laugh at us when it's our turn, and we'll be squealing like little piggies that it's not "F-A-A-A-A-A-A-A-I-I-I-R-R-R-R-R-R!" And of course it's not fair, but it wasn't fair when it happened to everyone else either and we egged it on.
Except for Austria.
Well, "Hellooo". We've all been clapping for Tinkerbell: No more clapping, no more Tinkerbell. Nothing left to do now but pray folks, "And forgive us our debts as we forgive our debtors."
No worries, sista Janet will provide as much as needed, (sarc)
Ha, except Snowdyke ain't no sista.
Keep in mind that ELA money is officially not lent by the ECB as a whole: the ECB/Eurosystem forbids or permits ELA, but it's the national central bank which is the lender. (This is why both Greece and Ireland were incredibly stupid to postpone their crises by resorting to ELA wheezes.) Of course, once the Greek central bank goes bankrupt and defaults, what then?
you absolve them too much
when you contend they were too "stupid"
to know exactly what they were doing
and for whom they were doing it
Cash and ATM withdrawals spread to Germany, PIIGS, then across the EU. European bank holiday. Equity market closures. It could happen: The skids are Greeced.
The Graphic showing Greek Bank deposits versus the ECB claims is absolutelly Irrelevant in case of a Grexit.
In case of a Grexit Geek Dbt would be Denominated in Drakmas, hence the Value of teh Dbt would plunge ...it would never be repayed back.
The loss would be almost 100%, worst, all Greek Debt would be effected, both public as well as private.
I don't understand on what basis the FRBNY can claim to be solvent when all the central bank does is print money and buy U.S. Treasury debt????????
Rip the fuck band aid off already and let's force the Federal Reserve Bank of New York into Bankruptcy!
Since Chicago and other Federal Reserve Banks are commodity driven we should allow a orderly liquidation of those assets and have a great reset to a silver back currency.
Fuck the FED.
Is it too late to convert to judaism?
Put on a funny hat and say, "I hate goys" 3x.
Would you accept your body parts being mutilated?
And have to marry a Ruth Ginsberg looking zio wench.
wtf Tyler, my ZH pages didnt used to automatically refresh here before, you taking a page from Drudge for hits or something?
It would be nice to see comments update... then we could more efficiently insult each other...
the ecb has less than a hundred billion? lolololol
frigging pikers
We need Russia to invade somewhere or attack someone, STAT!
I expect Poroshenko to announce right on cue that yet another three columns of Russian tanks, APCs and heavy artillery has crossed into Ukraine.
Merkelites beware!
Lets us not forget the tiny 110 bln of Greek bonds on the ECB books compared with their 11 bln capital/
Draghi has a big mouth but a tiny dick. That will not prevent him however to promise "whatever it takes " Unbelievable how bancrupt speculating Central Banks still have the ability to intervene even with negative capital.
Gold to spike to $5,000 by Friday - film at eleven
We wish.
Expect full blown intervention by the controllers at the open.
the money they loaned was fake.
And so is the debt.
The money *owed* could be booked as never created, hence never lent.
All we need is to use the sort of accounting practices JP Morgan and Goldman employ.
Pull it!
They'll have a real headache on their hands as more people realize the money is printed from nothing for the benefit of a few jewish banking families.
I am going to celebrate and drink a bottle of Knob Creek wiskey when this shit explodes .
I wish I could drink!
Geting wasted was so much fun!
The hangovers suck!
Drink more water with the whiskey.