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Equities Soar As Tsipras Said Ready To Accept Most Of Expired Bailout Offer, European Response Muted
It's deja vu all over again.
Just hours after Greece became the first developed country to default to the IMF, as a result being expelled from its existing bailout program, a little before 5am CET news hit that Greek PM Tsipras was willing to concede to virtually all creditor demands, with a few exceptions. As the FT first reported, "Greek prime minister Alexis Tsipras will accept most of the bailout creditors’ conditions offered last weekend, but is still insisting on a handful of changes that could thwart a deal according to a letter he sent late on Tuesday night."
The two-page letter to the heads of the European Commission, International Monetary Fund and European Central Bank and obtained by the Financial Times, elaborates on Tuesday’s surprise request for an extension of Greece’s now-expired bailout and for a new, third rescue rescue worth €29.1bn.
The letter was sent as eurozone central bankers were preparing on Wednesday to raise the heat on Greece and its banks by restricting their access to emergency loans, a decision that could topple at least one Greek bank.
Although the bailout’s expiry at midnight Tuesday night means the extension is no longer on the table, Mr Tsipras’ new letter, which marks a significant climbdown from his previous position, could serve as the basis of a new bailout in the coming days.
Eurozone finance ministers are due to discuss Mr Tsipras’ new proposal in a conference call at 5:30pm, Brussels time (4.30pm BST).
Mr Tsipras’ letter says Athens will accept all the reforms of his country’s value added tax system with one significant change: keeping a special 30 per cent discount for Greek islands, many of which are in remote and difficult-to-supply regions.
As Bloomberg added, "The letter is the latest indication that Tsipras may be more willing to yield to prevent the nation’s economy from cratering after more than five years of crisis-fighting. Today, euro area finance ministers will weigh the bid from Tsipras, while European Central Bank policy makers will discuss whether to maintain their emergency lifeline."
And as per the WSJ, "in the new letter sent to the country's lenders late Tuesday night, Greek Prime Minister Alexis Tsipras proposes changes on several key parts of measures at the center of a five-month standoff between the two sides over funding Greece desperately needs."
Those include a later start of pension overhauls and exceptions on sales-taxes for certain Greek islands, measures that lenders already rejected when talks broke down last week.
"If Friday's proposals (from creditors) are the baseline, these measures would significantly increase (the) fiscal gap," said one official. "And lots of clarifications would be needed on other aspects," the official added.
A second official said that the proposals from Mr. Tsipras are a weakening of the measures that have been discussed and would not be well received by the three institutions that oversee eurozone bailouts--the European Commission, the European Central Bank and the International Monetary Fund. A third official echoed that assessment.
A senior Greek government official said that the Greek government was not planning to send additional proposals with more concessions on Wednesday.
The letter is the latest in a flurry of drama over the bailout. In the last week, Greece has called a referendum on demands made by creditors and closed its banks to stop a flow of money out of the country. On Tuesday, it became the first developed country to default on the IMF, as the rescue program that has sustained it for five years expired.
The full letter, which was not denied by the Greeks, can be found below:
To be sure, equity markets around the globe, and especially in Europe soared while bond markets tumbled, when the news firstt hit just around 11am CET.
Curiously, this happens even after news that in one of the first polls conducted since the referendum announcement a majority of the Greeks would be willing to side with Tsipras gambit and vote No:
Efimerida ton Synatkton poll:
- 54% Greeks plan to vote NO
- 33% Greeks plan to vote YEShttp://t.co/fY082tNqKl #Greece
— Open Europe (@OpenEurope) July 1, 2015
And yet, the question is: just what offer is Greece conceding to - the one which expired yesterday? And then there is also the question whether Europe is even willing to budge at this point, since it goes to the very core of the matter: just who is it that wants a Grexit (recall: according to Goldman, a Greek exit is just what the ECB wants to boost QE).
To be sure the first countr headlines from the Troika were anything but supportive.
- EURO ZONE SOURCE SAYS TSIPRAS LETTER CONTAINS ELEMENTS MINISTERS WILL FIND HARD TO ACCEPT.
Schauble made it quite clear that the Greek offer has now expired, and "any further negotiations on aid to Greece would be more difficult and fall under the European Stability Mechanism, which incidentally is just what Tsipras had requested overnight. He had a few more comments:
- SCHAEUBLE SAYS SECOND LETTER FROM TSIPRAS HAS ACHIEVED NO CLARITY
- SCHAEUBLE: TALKS BEFORE GREEK REFERENDUM MAKE NO SENSE
- SCHAEUBLE SAYS ACCORDING TO IMF RULES, GREECE IS INSOLVENT, IMF CAN NO LONGER PAY OUT AID
- SCHAEUBLE SAYS SEES NO UNCONTROLLABLE RISKS TO GERMAN BUDGET DUE TO CURRENT DEVELOPMENTS, INCLUDING FROM GREECE
SCHAEUBLE SAYS NOTHING CHANGED IN FACT THAT THERE WAS NO AGREEMENT BETWEEN GREECE, CREDITORS BY MIDNIGHT - SCHAEUBLE SAYS OLD EFSF PROGRAMME FOR GREECE HAS EXPIRED, NOW A NEW ESM PROGRAMME WOULD BE NEEDED WITH DIFFERENT CONDITIONS
- SCHAEUBLE SAYS THERE IS NO BASIS TO HAVE SERIOUS NEGOTIATIONS WITH GREECE AT MOMENT
- SCHAEUBLE SAYS GREECE HAS TO MAKE CLEAR WHAT IT WANTS
- SCHAEUBLE SAYS WE ARE IN A COMPLETELY NEW SITUATION WITH GREECE, WE ARE ALWAYS READY TO TALK
Others joined in: Reuters cites Italy's PM who said that Greek Prime Minister Alexis Tsipras announced plans for a referendum on European bailout conditions for political reasons and the vote is "highly risky."
Austria's FinMin Schelling said should the Greeks vote no in a referendum on Sunday on whether to accept Athens' creditors' bail-out terms, no new talks would be possible with the cash-strapped nation. "If Greece votes no, no further talks will be possible," he said on the sidelines of an economic event.
More from Reuters:
Euro zone officials said a letter sent to creditors by Greek Prime Minister Alexis Tsipras on Tuesday contained conditions for Athens' acceptance of a loan offer that at least some governments would find hard to accept.
The letter, seen by Reuters on Wednesday, said Greece would accept terms published by the European Commission on Sunday but with a number of amendments, including maintaining a reduction on value-added tax for Greek islands and maintaining a pension supplement for the richest beneficiaries for the time being.
"There are still a lot of loose ends," one euro zone official said. "The letter mentions, for example, reform of the labour market from autumn. It's just one sentence, not more.
"I don't think the Eurogroup still believes those promises just like that. By the way, they're asking for the extension of a programme which has already expired."
But the biggest hurdle by far is that Greece still seems intent to proceed with the Referendum. Clearly at this point withdrawing the popular vote would be political suicide for Tsipras who just two days ago, full of bluster, addressed the nation and saying it would not be blackmailed. Flipping on that position would hardly win him any popularity points.
Which begs the question: is this merely the latest ploy in the blame game, in which Greece can say: look, we tried absolutely everything, and they still did not budge, just to assure a "No" vote.
Ironically, it is Europe who now appears to desire a referendum as much as Greece.
And what happens then?
To be sure, many "game theoretical" elements and nobody really has any idea what happens next as the Grexident unfolds.For now, however, at least the algos are happy if gradually fading the initial kneejerk bounce higher even as the EUR has now seen right through this latest diplomatic ruse and fallen back to unchanged since before the announcement.
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he will be considered a traitor by those who voted for him
that's normal for a politician
Puerto Rico needs its Tsipras.
OK...paper it over...the problem is still there.
It will only grow bigger.
Sounds like he's had a visit from an Economic Hitman
http://www.democracynow.org/2005/5/17/confessions_of_an_economic_hit_man
http://www.democracynow.org/2007/6/5/john_perkins_on_the_secret_history
http://www.democracynow.org/2009/11/10/hoodwinked_former_economic_hit_ma...
This is more of the same blame game. Tsipras (and his handlers) know full well the ECB/EU is an amalgamation of very strict procedures and processes. Now that the memorandum has expired, a new one would require to restart from scratch (as Disselflower said yesterday), which would take weeks (at least) and would require an even more drastic memorandum (as the bank holiday will have had an impact on GDP).
The end-game is to precipitate a crisis severe enough to force further European economic integration. We're not there yet. The crisis not-to-be-let-to-waste hasn't happened yet.
If Tsipras cancels the referendom then the people will eat him alive. All this finger pointing and drama is making my head hurt.
Guillotines are good for that.
BTFD
This was posted by Ploutos74, yesterday, and (s)he was red arrowed to smithereens. Man, sometimes we have a rabid response for somebody whose posts go against our biases. And the participants here consider themselves to be open-minded.
"Greece just folded. The Yes vote has a clear lead, banks are all but out of money already, which means that till Sunday everyone will want Tsipras's head on a platter. Tomorrow they'll arrange for a new MoU hoping to save some face or alternatively their lives from lynching"
http://www.zerohedge.com/news/2015-06-30/these-are-greeces-5-possible-pa...
More people around the water cooler, so to speak, are watching and talking about this and related world issues then last week which is an improvement. I mean really? This is just unbelievable.
But, but, but, but you told me IT was really happening this time! For the 16th time, I might add. What will all the goldbugs do now with all those stiff cocks? I guess they could finish themselves off watching Walking Dead reruns or maybe The Road movie.
Just because you bought Gold at its highs and sold at the lows dont fcking blame us.
No offense to normal folk who buy gold. I'm talking about the doom fetishists who dream for the collapse so he can finally be the "richest" guy in town because he has gold, guns and canned goods.
No one want to be the richest guy in town after a collapse.
These people simply are just another herd of sheet that run together.
They are read the same stuff and the sky is always falling.
It does not mean that they want for the SHTF to happen. They just expect it.
Frankly, if you look at history, there is a very good chance of some major SHFT in Europe.
Just because it managed to stay somewhat peaceful since 1945, it does not mean it will forever.
Yugoslavia was also very peaceful until the 1990s. Then it was not.
Fuk all the elected ruling political elite turds everywhere. Fukem.
Like McConnell, Boehner, and Ryan?
Yes, if you're only to mentioning 3 of the 536 criminal representatives in the feral federal government.
Like McConnell, Boehner, and Ryan?
Are Key Republican Leaders in D.C. Being Blackmailed?
http://townhall.com/columnists/wayneallynroot/2015/06/30/are-key-republican-leaders-in-dc-being-blackmailed-n2018837
as i said dozens time last year before get spam disabled, greece cannot exit, it is not allowed...
Only compromised person can be blackmailed like that.
The other alternative is blackmail by threating the safety of one's family.
Knowing that these are politicians they likely have some very nasty stuff in their closets.
It would be great if WikiLeaks got hold of all the blackmail material and released it to the public.
The leverage over politicians would evaporate instantly.
Only compromised person can be blackmailed like that.
The other alternative is blackmail by threating the safety of one's family.
Knowing that these are politicians they likely have some very nasty stuff in their closets.
It would be great if WikiLeaks got hold of all the blackmail material and released it to the public.
The leverage over politicians would evaporate instantly.
Just thinking of the "trade agreement" when nothing has been done to bring back jobs sent overseas, curb the H1B program, or close the borders and enforce the immigration laws to keep illegals out of the job market.
It's all Bullshit!!! Greece will get it's money to pay back the money it already borrowed. all printed out of thin air. Said it right along. Rally on!
This guy changes his mind every time he gets a death threat
i am elated! it gives me moar tyme to prepare...
TIC TOC MUTHERFOOKERS (bitchez, too)
lemonade from lemons
FML
Hopefully they were able to frontrun a little on their own decision.
.
Pussy
Tsipras has the awe-inspiring boldness of a homeless shoplifter.
Not even that.
Look the guy needs to pick color,
At this point he's lying to his voters and the EU fucks.
I'm wondering, maybe they didn't expect the majority of people would vote no...
He picked a color.....YELLOW!
How do you say "No Mas" in Greek?
"What is your favorite color.."
https://www.youtube.com/watch?v=pWS8Mg-JWSg
Step by step, heart to heart,
Left right left,
We all fall down like toy soldiers.
Turn those machines back on.... https://www.youtube.com/watch?v=B71HytDmEso
They made him an offer he couldnt refuse
So in other words, he found John Kerry's head in his bed?
What's the half life of these deja boooo!!s
3 hours?
Wait for it.
And prepare to witness golden dawn so to speak in the near future.
Not a chance.
The Europeans don't want to deal with this clown any more. They will concede nothing and make sure people know that he is to blame.
So in other words Tsipras, you're ready to open your mouth to catch MOST of the EU bankster's spunk. Sounds pretty much like every other politician when it comes to the hard choices.
Fucking sell out!
Blankfein: "All the retail players short yet?"
Drooling, insignificant underling: "Yes sir!"
Blankfein: "Good, fry them."
Another day at the casino...lol.
They will come with an added condition that Tsipras now has to leave. His left wing fraction doesn't want him now anymore either.
But it is not over until the fat lady sings. Could be just more delaying tactics.
Who knows whats going on?
I will belive it when it is actually a done deal.
And Tsipras really want to U-turn at the last, having worked up the Greek people, got them behind him, and then dump them after the first date. They will be very angry, next will be Golden Dawn govt, military take over?
The Geeks will go nuts at this 'apparent' sell-out at the last moment,
another nation surrenders to the fiat regime. debt servitude til there is no soul. hollowed til no hope and down it falls with nary a breeze...
How do you say "Bend Over" in German?
Benden Sie Over or in Greek, assume the position.
"Bück dich"
.
You don't need to say anything. The Greeks are bending over automatically at every turn.
At the FKK clubs, they assume the position when I say, "Hundestellung."
Greece can not pay back its debts. Period. Why this pathetic drama, when the end is inevitable? The EU is not solving Greece's problem, it's trying to solve their problem of failed currency union, by putting population of the peripheral countries trough immense suffering. If they wanted to solve Greece's problem, they would have acted differently and the proposed solutions would be different. Can kicking is not a solution, it's a pastime for teenagers who got nothing better to do. Does this mean that EU's leadership are bored teenagers? Maybe not, but they certainly behave so.
Ihre bum I believe
Its never been about paying anything back, its about rent and servitude.
absolutely. +1
"the beatings shall continue until morale improves" - very German
Politics - theatre for ugly people...
The EU institutions.. occupational therapy for drunk psychopaths
The IMF.. lovely place.. full of fake tanned, somewhat hot older French 70's porn stars --- yeah you know you would!!
www.teamramgold.com
I'd rather put my dick in an old Hermes bag. Or is that the same thing?
LOL>>>. lesser chance of an STD from a Hermes... .i'd imagine ..
somewhat hot, eh?
If he caves before the people can give their opinion then he is sailing extremely close to the wind
it's always the same, only worse...
This has longer to run. Much longer. All you popcorn eaters from yesterday must be getting real bored by now. We're talking about the wholesale rape of an entIre nation. Best get yourselves a good book...
BUY THE FUCKING DIPS
Would that be KFC chicken dips? ;-)
Was he just promised a job at Carlyle??
The Chinese have made a move. Offering to save the EU in exchange for some concessions. The EU have caved and part of the deal is to be better to Greece. Therefore, the Greeks will go back, newspapers will start taking a slightly different tone. And the uneducated West will scratch their heads.
Tsipras is Insane.
No,he isn't,but a master in shifting the coming grexit blame back direction IMF,Germany,..
No,he isn't,but a master in shifting the coming grexit blame back direction IMF,Germany,..
So they're not voting on whether they're paying back their debts now?
This is going great. Who are the idiots buying this?
So now lot of ZH articles about how lefties in Greece will break EU - can be flushed in toilet - as usual.
GO HOME TSIPRAS. YOU'RE DRUNK.
Per the FAZ - "Schaeuble: Neuer Tsipras-Brief hilft nicht weiter."
New letter from Tspiras not helpful.
A Greek official has sought to douse suggestions that Greek Prime Minister Alexis Tsipras has caved in to creditor demands.
Now, we can understand what byzantine means.
Theatre.
The tragedy that just keeps giving.
Welcome back my friends, to the show that never ends....
......we're so glad you could attend - come inside come inside.
Witnessing this shit show is like negotiating a new car with a car salesmen...
boring as fuck'en hell....
The banksters win again.
Do they ever lose?
"The banksters win again.
Do they ever lose?"
Only when they argue with a nail gun, fall off the top of a 9 story office building or are found hanging under a bridge.
Revolt will come.
Yep, it's all brinksmanship, fun, and games until people start getting into fights and killing each other over the last sandwich at the quickimart.
What a marooon!--Bugs Bunny
At this point in time words matter.
"Most" does not mean "All". With neither side willing to budge, this is just a rumor... so it can be bought.
However as soon as the facts on the ground indicate otherwise, selling will resume. I would not recommend buying this dip with the weekly SPY indicating a clear slowdown and consolidation. A much larger correction has been forming based on prior ZH articles focusing on longer term charts.
If it's not Greece, it will be Ukraine. If not Ukraine, it will be China. And if not China, it will be more social unrest in the US. Doesn't matter. The tinder is everywhere and there is a huge burn off forming.
The bad part is, the Western Economy now has so much risk in the form of derivatives, that it can't correct without a crash. We're in a very tight spot.
Anyone who thinks this consumer driven economy perpetuated by debt and fractional reserve lending is sustainable is either ignorant to the facts or is so hopelessly dependent on the current system, that they refuse to be open to the truth.
The current model is not sustainable. It will not last. The sooner we can collectively realize this, the greater our chances are for survial. The longer we live in denial, the greater the chances that we destory humanity completely.
https://www.youtube.com/watch?v=tPImdMknAO4
Ok, so is this a default, or is it not a default?
Are they going to agree to shit that was wrote prior the deadline and then make up new rules and claim its not a default?
I'm confused.
They'll let you know as soon as Goldman Sachs calculates which way they make the most money.
Don't be confused. In Greece haggling is a way of life. You never buy at the asking price. You offer a lot less, you call the seller a crook, you walk away saying you would never pay that price. You come back and argue some more. Finally you agree. This is only confusing to one price shoppers. It doesn't happen this way at Walmart or Nordstroms so if you are used to that frame of deal making it seems confusing.
As far as I can see the IMF madame is calling it "arrears" not default.
Bwwwwaaaaaaaaaaahaaaaaaaaaahahahahahahahahahahahahahhaha!!!
Repeat after me.
Debt has to continually expand under a debt based monetary system or it collapses, there are no exits, only expansion and sudden death.
LOL, rip your face off rally.
All The banksters are long.
This Greek theater just was more dramatic.
Print, extend and pretend for years.
Sell the hype , fake news to sell into.
Tsipras denied the report, there are a lot of gross lies and propaganda circulating which the mass media gladly and unquestionably carry supposedly as 'news'
The letter also promises to do a lot of reforms in the future - looks like a con to me. Well played if it works - take some more of the sucker's money...
Banksters 1
Idealists 0
Were we expecing a different outcome?
The response has been government lowering Terror Warning Color Codes.
They closed their trades, made new trades, and kicked the can...as predicted. All this horseshit is so a few people can make money pushing the markets around.
It's Wednesday. Tsipras always bends over on Wednesdays.
Thursdays are different (!!)
Then it's his turn to play the man and phuk anyone still alive in the Troika.
Fridays are the best. They take it in turns and Mutti joins in.
so looks like most waterboarding in this "The Plan B" will play out like a soap. After all torture is a process not an accident/event. That is still better than accidents, given that social fabrics are not strong yet. What Mr. Tsipras did is probably known best to him... right or wrong ... we will have to see.
http://just-a-thought-from-thinair.blogspot.com/
The economic platform in the letter appears to be a pretty darn good start to Greece getting its fiscal shit together so that would enable them to fire up the drachma, regain its economic sovereignty while dumping the EU. If instead the letter is a fix to maintain loan covenants (and their associated debt servitude) then I don't see the point. If I were Greece I would say "Fuck the EU."
Maybe I got this wrong.
You didn't BTFD did you?
So if he accepts, then whats the point of the referendum? I dont get it. If he makes a deal, then the vote comes up 'no', what happens? I think this guy is just off his rocker.
When things don't add up, there is usually something they are not telling us.
I wonder how much he made in the stock market. /cynicism
it is reasonable that the EU will make some minor concessionsto let tisipras save face.
This is disappointing to say the least; it smells of cowardice and betrayal - kneeling down before the banksters and begging for forgiveness, HOW can he look anyone in the face or HOW can he look into a mirror?..And besides all that, the Greeks DON"T have the money to repay the debts-NOW that's a problem - taking on more debt to repay debt, if that doesn't sound INSANE, nothing does....
So markets are up almost 1% on news of the Greek deafult yesterday?
YAWN.
There are billions and billions of electronic notations looking for a place to be.
Tsipras should stick to the mandate that got him in power, the majority of the Greek people will stand behind him he stays true to them.
The main stream media is strongly bias towards an yes vote which isn't suprising, just another example of them pushing their pay masters agenda.
I sure hope he's f'ucking with them. That'd be a good prank. Otherwise one might suspect he got threatened with assasination.
A modern military force needs food, fuel, and pay checks for those that serve.
http://www.telegraph.co.uk/news/worldnews/europe/greece/11705421/Most-Gr...
The cattle cars are at the siding...
Get on quietly or make a break for it past the guards?
I don't understand this, its all greek to me.
These Grecian formula bitches remind me of Iran...
So like I said nothing changed, they are going to bail out Greece once again. Shame on german and EU politics:
"SCHAEUBLE SAYS WE ARE IN A COMPLETELY NEW SITUATION WITH GREECE, WE ARE ALWAYS READY TO TALK"
^Above is all readers need to see, all else is trash.
Funny that not long ago Tsipras was humiliating them about WW2 debt revisiting plus something about his "pride" of not being blackmailed etc. Now he is begging like a dog but unfortunately EU politics are just same honorless dogs so they will kick the can all together dont worry.
There are few more things both parties said that make my blood to boil but I am not even going to bother talking about it. Or maybe just this:
"...Greece would accept terms published by the European Commission on Sunday but with a number of amendments, including maintaining a reduction on value-added tax for Greek islands and maintaining a pension supplement for the richest beneficiaries for the time being". >> So the most broke country in europe want to keep paying pensions to the rich. And you bet those retards will still bail them out. I am lost at words here.
He's offering up the same thing he offered up before. Let him sink or swim.
European social mood is waning badly and the future does not bode well for the European Union. The stock markets are collapsing and the EU economies are being sucked into a deflationary vortex from whoch there is no escape.
http://www.globaldeflationnews.com/
The Greeks being Greek, bend over and using both hands spread cheeks to ease entry.
This time the ECB will not even use olive oil on its cock. It will go in rough hard and fast.
All hands, brace for impact.