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ECB Strikes Back: Threatens With Greek Deposit Haircut If And When ELA Found To Be "Illegal" On Wednesday
The threats are flying fast and furious now.
Moments after the WSJ quoted a Greek official as saying that Greece will not make its IMF bond payment, the ECB struck back when Bloomberg reported that the ECB would review the legality of Greek aid should there not be a deal, i.e., on July 1 post an IMF default. According to Austrian central bank Governor and ECB member, Ewald Nowotny, on Wednesday’s governing council meeting the central bank will decide whether it can continue to provide emergency support for Greece once current bailout program expires June 30, as the Wiener Zeitung originally reported.
He added that "all legal aspects will be reviewed” and that another issue is also whether Greece support will continue beyond referendum. Perhaps somewhat needlessly he added that there are differing opinions at the ECB governing council on the issue of Greek ELA legality.
As a reminder, Nowotny is the central banker who a few weeks ago surprisingly announced that Austria would follow in the footsteps of Germany and Netherlands, and repatriate a substantial portion of its gold held abroad.
The subtext of what Nowotny just said is that absent a deal, Greek banks will have no choice but to impose a massive haircut on existing deposits, since the entire ELA will be yanked, and the Cyprus scenario would follow, one that would see existing deposits of under €120 billion, chopped off in half or probably much, more depending on the true state of Greek bank collateral.
It also goes without saying that at this point the odds of a premeditated Grexident are soaring.
More if we see it.
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Is there something going on in Greece we should know about?
Slightly OT, but… ;-)
According to Le Monde, two top Uber France executives have been arrested.
Also, 200 police officers have been assigned to catching all illegal taxi drivers operating without a proper taxicab license, i.e. Uber drivers.
So, if you buy shares of a company whose business model is based on an illegal activity, be it Napster (remember that piece of fecal matter?) or Uber, you are… umm… fucked? ;-)
Looney
The real fireworks start when the rich Greeks quietly get liquidated while the banks are "closed" and everyone else has a shit sandwich and a spidey towel left in their accounts.
Or hand out 2 to 1 Drachma, cut the price of everything in half, including tourism of course, and promptly default on all outstanding debt
Tourism will be priced and paid in Euros.
Yeah, and if the Drachma is introduced, it will take more and more of them to equal 1 Euro. Internally, price doesn't change. As a tourist exchanging your dollars, you get more and more for your buck.
yeah more fuck for your buck
I'm not excusing the Greeks for getting themselves into this mess, but they had a lot of help from Goldman Sachs and the rest of the EU who looked the other way and accepted the buy up in bond ratings through derivatives to qualify an country for entry into the EU that should have never been allowed to enter in the first place. Kind of like all those predatory loans that were made to home buyers who had no business buyng homes...only the home buyer and the investor got fucked on those deals...the middlemen made out like fucking bandits. I say if Greece goes down, take out the fuckers who helped them get into this mess in the first place and by that i mean the bankers and the politicians.
Like that's going to happen...
Your analysis is spot on, but instead of getting tried and sentenced they will just move on to the next country they can suck dry.
So the Greeks have depositors and the ELA on the liability side of their balance sheet. What do they have on the asset side? Any Greek government T bills maybe? So what if Greece tells the ECB to fuck off and offsets the Liab with canceling Greek T Bills?
The next step will be carpet bombing Greece, from side of Air Force EU and NATO?
Someone at the SNB forgot to turn off their "Buy all Euro" program.
1 day into Greek bank holiday and the Euro is UP 100 basis points from Friday. ....... uhm, errr yeah
Do you think that it is the Swiss best interests to let the Euro fail?
For instance if the Euro devalues then Swiss exports become more expensive to the European Union trading partners with the result of declining demand from Swiss manufacturers. A weakened Euro hurts Swiss Manufacturing.
That is just one of many examples to choose from.
The SNB must defend the Euro to defend their own economy. They are in a quandry.
Let us know when the french start rolling out guillotines for those illegal Uber drivers.
I've been curious about how foreign or regional Uber offices often get in trouble with the law but it never, ever seems to result in extradition proceedings for anyone at Uber head office. Let's see if that that changes at all this time.
Nope, nothing going on in Greece.
https://www.youtube.com/watch?v=5NNOrp_83RU
I’ve heard that there was a weather report that forcasted snow in the comming months for Greece!
Winter is coming.
Winter is coming.
If the IMF banksters can't set the precedent to loot the national treasures of Greece (under the terms of their "loans"),
then they will set the precedent of stealing all their bank accounts.
The greeks response will simply be "what deposits"?
Pretty much, the ECB/EU think that one more threat will fix everything. Of course if they declare it illegal then it will go to court and I would be willing to fly over there just to watch that trial........
Just skip the foreplay and have the Greeks get in their tanks and head for Berlin.
They can't afford to fill them with gas.
Greek takes are all German made. You've gotta figure there's a kill switch.
I wonder if the Reserve Ratio for ALL ECB banks is still only a pathetic and historically low 1%, because, "...the system of reserve requirements is not needed to the same extent as
under normal circumstances to steer money market conditions."
That is just one lifeboat for every 100 ECB depositors. Thus, if things continue to go badly, then 99% of ECB depositors are going to be left swimming in the icy cold waters of the North Atlantic.
.99 + .992 + .993 + ... = 100.
That's a lot of leverage.
It is a good thing they have a printing press as the fulcrum.
Ouch!
Of course it's 1% why would it be anything else. Banks make loans and the bank that makes the most loans wins. If interest rates are near zero the loan game is one of increasing trade to increase revenue.
The Federal Reserve and ECB administered policy that creates loan shark lending. Since they knew the game they benefitted the most. Thus the super leverage.
And when it falls apart don't think the President's Working Group on Financial Markets won't be short. They have to control the world in the name of the NWO. It is good to fleece the sheep. It means there is wool to sell.
why doesnt draghi launch OMT to do "whatever it takes"? i guess "whatever it takes" does not include bankers eating losses.
Coming to your hometown as soon as can be. You just know they are planning it.
But remember folks, vote "yes" no matter what
They’re going full retard to push the Euro back up.
There’s about a 4% swing in the last 24hours and none of that shot is hitting the wires...
4.5% and rising...
The MAN is shitting now.....all the clown comments, the strong stances, all the we own you attitudes are being puked up by the Greeks....I like it....the banksters must be monkey hammering Brussels to put a deal together before they get their assess handed to them....and now the future is where it should be, in the hands of the people, who can vote on whether to be strip mined forever or carry their own destiny forward as a soverign nation....
In game theory parlence.... F U MALAKA
The Empire Strikes Back?
After all, that's all it pretty much boils down to now.
and Draghi is warming up the death star
But, but, the Greek government said everyones' deposits are safe! (ly in the hands of bureaucrats to steal)
Fuck You ECB! Greek can't pay. What the Fuck do you not understand? If you want to get paid, go after Goldman Sachs. They lied to get Greece into the EU. So, go ahead and take Greece to court. I would love to see all this be made public!
Everyone in the EU knew Greece couldn't meet the guidelines for entry but they looked the other way because they could. It didn't take GS lying to get them in. GS was used as a mob accountant to hide the truth that everyone already knew.
Greece was allowed in the EU so that we could reach this point. CRISIS. Crisis is good for those who look to assume more power. And theresult here will be a power grab and eventually leads to a Federalized Europe where power over the continent is concentrated in a few totalitarians.
We know the plan. It's working perfectly. We will have the USofA, the USofE, the USofI(slam).... and then one big as fucking war.
We know the plan. It's working perfectly. We will have the USofA, the USofE, the USofI(slam).... and then one big as fucking war.
I prognosticate that a BIG ASS WAR happens before that as the plan is fracturing before their very eyes. It s not working according to any plan.
And you forgot the United African States, The United South American States, and the United Asian States...
Of course the United Asian States is something which Japan will never stomach. They will go to war against China before that.
The Japanese are extreme racists and believe that both Koreans and Chinese are inferior.
And then the USA will nuke China.
What plan?
LOLZ THEY ARE MAKING THREATS AT EACH OTHER WHILE THEIR FIAT SHIP SINKS INTO THE GREAT ABYSS!
THIS SHITSHOW IS TOO FUNNY!
HAHAHAHAHAHA!
It'snot even close to sinking yet. The ECB has trillions and quadrillions more euros to print before it sinks. They can "cure" the problem with the click of one key.
The fiats ship will sink under the weight of the fiat not because of some minor debt default issues. Look at what the Fed did in the US. They will print because they can.
"all legal aspects will be reviewed"
...as well as some illegal ones no doubt.
You are REALLY STUPID if you keep sending money to somone who just said they are not going to pay you back.....really stupid...but I bet they do...
Its the cost of doing buisness. They will give more money if it keeps the euro going.
This Dick measuring contest is painful to witness.
Especially when the rulers are red hot!
Yeah make it illegal after the fact just to justify not continuing it. If they knew their laws it would have never been started in the first place... Arbitrary and capricious alright. Ooops our bad, have a spiderman towel for your troubles.
What a bunch of first graders.
So, if Greece caves in and takes the serfdom "offerred" does that mean that the BS is legal.
Fucking idiots.
They couldn't negotiate their way out of a paper bag
Tell the Troika to fuck off, sit back and watch their stupid derivates bury them all.
German union Ver.di has said indefinite strike action has expanded to 31,000 employees at Deutsche Post as the conflict entered its third week.
http://postandparcel.info/65865/news/companies/union-demands-fresh-talks...
The EU is sure having its troubles all over.
From what I could gather they are on strike due to wage demands not being met. Wages that are probably double the american minimum wage, while social security plus health care is obviously a given i.e. not even part of the ongoing discussion - that's EU troubles for you. People will always demand more.
Since when does any concepts such as "legalities" apply to the banking system?
Do that shit and for sure people are gonna send death squads against your asses. I know people who would go postal if that happened... they would leave everything left behind and their only goal in life would be to get payback... no matter the cost.
So... better think real hard about doing that.
Italy, Portugal and Spain will start to immediately pull deposits. Lesson not learned with Cyprus but this threat to Greece will wake up the masses. Out now or loose all.
Canadians need to wake up as well.
Notice that the ECB has become the self appointed arbiter of what is legal and what is not legal.
Fuck the ECB.
Fuck the ZWO.
Fuck the elders.
so russia buys greece for a coupla drachmas. that will cause some counterparty risk. since russia has effectively derisked itself it would be a lot of fun over a coupla bottles of good potato juice for putin to watch.
There is nothing in the body of this item that supports the headline.
the threat is implied vis a vis 'examine the legality of ELA'....german high court has never really ruled on the legality b/c everyone knows it isnt legal. not legal b/c the ECB is not allowed to explicitly fund a govt like it has been doing via ELA. so now the north will get its way, yank credit and it appears to be implied by the author, take back a bunch of deposits. which would pay down some of the debt greece owes.
greece defaults.....creditors like hedge funds and banks have to eat it, any greek debt the ECB owns will not get written down, smaller debt becomes slightly easier to pay....fast forward 30 months greek still under the euro is back into the global mkts and pays a rate greece should pay, like 6% p.a.
All together now Greece
a one......a two.......a three
Deutschland Deutschland ueber alles
Biting ones nose to spite ones face.
If the ECB do this, the Greeks should nationalize their banks and it will game set match.
And then the real fun will start....
E C B it's as easy as Do Ray Me,1 2 3 and E B T.
EU to Greece:
Democracy has no place in the EU.
Try to vote and WE will break you.
Pivot east and we will break you.
You cannot try suicide before we break you first.
WE are god and you have no choice in the matter.
Do not impede our march of power.
Heil Hitler
Not only winter but more boat loads of Muslims from Syria and Somalia, all coming for a free handout that the Greeks don't have. hahaha!
British truck drivers under seige in Calais from Illegal Aliens. http://foxmuldar-conservative-thinker.blogspot.com/2015/06/unarmed-briti...
Too bad the Greeks don't have nukes. Start targeting the ECB and the various estates of its owners.