This page has been archived and commenting is disabled.
Greek Banks Considering 30% Haircut On Deposits Over €8,000: FT
Last week in "For Greeks, The Nightmare Is Just Beginning: Here Come The Depositor Haircuts," we warned that a Cyprus-style bail-in of Greek depositors may be imminent given the acute cash crunch that has brought the Greek banking sector to its knees and forced the Greek government to implement capital controls in a futile attempt to stem the flow.
The depositor "haircut" would be a function of the staggered ELA haircut that the ECB could impose to escalate the rhetoric between the two sides, and could take place with as little as a 10% increase in the ELA collateral haircut from its current 50% level.
Unfortunately for Greeks, the ECB has frozen the ELA cap, meaning that as of last Sunday, Greek banks were no longer able to meet deposit outflows by tapping emergency liquidity from the Bank of Greece.
Now, with ATM liquidity expected to run out by Monday and with the country's future in the Eurozone still undecided, it appears as though Alexis Tsipras' promise that "deposits are safe" may be proven wrong.
According to FT, Greek banks are considering a depositor bail-in that could see deposits above €8,000 haircut by "at least" 30%.
Via FT:
Greek banks are preparing contingency plans for a possible “bail-in” of depositors amid fears
The plans, which call for a “haircut” of at least 30 per cent on deposits above €8,000, sketch out an increasingly likely scenario for at least one bank, the sources said.
A Greek bail-in could resemble the rescue plan agreed by Cyprus in 2013, when customers’ funds were seized to shore up the banks, with a haircut imposed on uninsured deposits over €100,000.
It would be implemented as part of a recapitalisation of Greek banks that would be agreed with the country’s creditors — the European Commission, International Monetary Fund and European Central Bank.
“It [the haircut] would take place in the context of an overall restructuring of the bank sector once Greece is back in a bailout programme,” said one person following the issue. “This is not something that is going to happen immediately.”
Greek deposits are guaranteed up to €100,000, in line with EU banking directives, but the country’s deposit insurance fund amounts to only €3bn, which would not be enough to cover demand in case of a bank collapse.
With few deposits over €100,000 left in the banks after six months of capital flight, “it makes sense for the banks to consider imposing a haircut on small depositors as part of a recapitalisation. . . It could even be flagged as a one-off tax,” said one analyst.
Earlier, via Bloomberg:
Liquidity for Greek bank ATMs after Monday will depend on the ECB decision, National Bank of Greece Chair Louka Katseli tells reporters in Athens.
Meanwhile, Yanis Varoufakis swears this is nothing but a "malicious rumor":
FT report of a Gk Bank Bail In is a malicious rumour that the Head of the Greek Banks Association denied this morning http://t.co/3xtnQvpS7R
— Yanis Varoufakis (@yanisvaroufakis) July 3, 2015
And moments ago Bloomberg reported that according to an emailed statement by the Greek finance ministry, the "FT report on deposits bail in is outright lie, provocative, and targets undermining July 5 referendum" and as a result the "finance ministry demands Financial Times to retract report."
»
- 149698 reads
- Printer-friendly version
- Send to friend
- advertisements -
the big disaster is on the corner,
at the moment that Grexit will officially anounced,
LOTS AND LOTS OF MONEY WILL BE LOST FOR EVER,
and then the real monster will suddenly appear,its name is Italy.
in few words,if we do care about our wealth,kids and eveything that matters in this life.
we have to be responsible.to those who know financial world Greek contagion to Italy,is having the simmilar probabibility with a nurse which is treating an ebola victim, to be caught by the ilness,within the hygiene . security standards of a Sierra Leon´s hospital.
this is the actual picture that makes people of fin to be awake and with fear!!
for this euroleaders should abandon fire playing games.
ok Fucken Greeks can´t get more austerity anymore.Those guys in brussels now are playing with our lives and not just with small and unimportant (bullshit,it really matters!!!ask ur agent)Greece.
but what u can expect from bueocrats who were civil servants for most of theyr lives?
who know nothing beyond theyr hammam equiped luxurious club?
If you buy a beach house in Greece in two years you will make lots of money.
If haircuts happen then government will be blamed.
Better for government to wash their hands of it and let the banks go bust. Then the Germans and Brussels get the blame.
Iceland style.
The Jooooos will get blamed. Watch Golden Dawn and ZH.
Yes, if you have your way FF, well known, but somewhat under cover zino-troll. A better target would be the Zionist Banksters.
I'm not undercover. I've been designated by the resident Left-Handers, CAIR rectum snooters, Goebbelites, and KremlinHabratrinas as a Jooo/Jew/Khazar/Zio et. al.
Mind a little friday music? Coffee for my breakfast, shot of whiskey on the side...its a dark and dreary morning with the clouds covering up the sky...the forecast calls for pain...its all coming home, and the forecast calls for pain. :-).
I love you all. I just dont care anymore
https://www.youtube.com/watch?v=Hz_ZLvIvYMc
Only one reason they haven't tried this in America.
guns
<< Only one reason they haven't tried this in America. guns >>
... and an unlimited printing capacity.
...and in any Empire, the periphery dies before the core.
I demand you print me money or I shoot@!
I want my PAPER!!!
RIPS
lol. like nobody has ever been "defaulted " in america.
Whilst technically the Banks offloaded the debt onto the EU taxpayer, what do you think they did with the newly released funds ?
They loaded up on EU debt thinking that the ECB (which is now up to its neck in it) would stand behing them.
Well tough luck buster.
Greece is broke, what cannot be repaid will not be repaid.
There is no money left for any bailouts, printing is not an option anymore.
Nai or not 'you are never getting it back'.
Everybody is broke.
Scaremongering at its most disgusting. Deposits are insured up to 100k and it's the ECB's legal mandate to fill the gap on any shortfalls.
Again, the EU press cheers on antidemocratic rhetoric.
Sad.
funny you should say that, only today I came across a news item re UK deposit insured amount... going down to 75k gbp from 85k gbp
(that got me thinking that it sounds like the ECB is the "insurer", i.e. in euros - 100k EUROs - and with euro/gbp exchange rate moving downwards towards 70p per euro...)
No, the ECB is not the insurer.
The EUR 100,000 insured limit was set by the EU but is translated into GBP for the UK and is the responsibility of each member .gov. The change quietly announced today in the UK down to GBP 75,000 reflects the stronger GBP vs EUR recently.
The ECB is ultimately responsible. Recap operations are subordinate to deposit insurance. That's the law.
NO it is not. The UK is not even part of the EZ.
Please get your facts right.
I didn't mention the UK. The UK is irrelevant to this discussion. They are not part of the EZ banking system which the ECB is responsible for...
Your graceful retreat is accepted.
What retreat? I didn't retreat. I never mentioned the UK... They are not relevant here...
If you check my previous comments they were mainly about the UK and bank bail-ins. You switched to EZ banks.
Wrong.
The deposit protection schemes only takes effect if a bank becomes insolvent. Bail-ins are intended to prevent the bank from doing that and won't be insured.
Sorry but that is just not correct. Without government support haircuts are impossible. Haircuts in Cyprus happened because the government agreed to them. The banks are already insolvent - we know this. The last 50bln in ELA should have never been extended. The ECB has to keep it going or they have to write off the full 86bln which is all backed by Greek TBills.
I don't support these syrzia clowns - however they are just highlighting the issues in this broken down unworkable system.
Apart from supporting "the highlighting the issues" I see positives in the emergence of anti-austerity movements around europe. It seems to me that they will have to be integrated into the decision making EU political landscape - in a gradual transition of EU leaders and policies - so that the disproportianality of impact from this "broken down unworkable system" does not continue much longer
You're wrong about the DPS. I suggest you read the terms of it in the UK and read carefully under what conditions it kicks in.
It is only effective when a bank becomes insolvent (goes belly up) and your deposits are lost. Banks which get bailed-in are not classified as insolvent because that's the very purpose of the bail-in. Ditto if the 30% skim mentioned is classified as a tax.
Moot anyway in a widespead banking collapse.Fine for one off building societies,
anyone else and you're sol.
True. But in the UK, the BoE/Treasury identified 4 banks which they classified as "systemic". These banks will not be allowed to collapse and will be bailed-in by depositors and other "investors".
In this case, the depositors will not be able to activate the Deposit Protection Scheme because the bank will not have gone bust. And because if that were the case, the .gov wouldn't have gone to the trouble of creating the bail-in process in the first place, the whole point of which was to transfer the burden from taxpayer to investor. It would have simply continued with bail-outs as before.
Bail-ins in the UK are a very devious way of the .gov absolving any liabilbity for failing banks.
good point
So it's a matter of still socializing the losses....again; amongst the EU membership, just maybe a politically more palatable scenario?
If the Greek depositos get their money swiped away, I predict violence as a response. Violent revolution. Or a secret society of Greek assasins targeting figures in the financial industry. And you know what? I am NOT a prirori opposed to such a response.
Since this will be classed as a "tax" or "bail-in", it won't qualify for the pan-EU EUR100,000 deposit protection guarantee scheme.
The FT, right. Another tbtf yes vote. All creditors with fiath in their dropboxes, poor souls.
Coming soon to the USSA
Rubish by FT another mouthpiece of the interconnected Oligarchs
Mass Media = asswipe
Pensioner and small business owners will likely be most affected. Destruction of the middle class was their plan all along.
Read this for more fun n games :
http://uk.businessinsider.com/yanis-varoufakis-says-he-has-a-deal-he-can...
Oh Yea. Stick it to those rich people. LOL.
What a fucking farce.
When I bend over, I want the bat to be "roughed up" before you shove it up my ass. I like it "Cyprus style".
whatdfuckis?
Hey - got to take care of the banks - fuck the little people who slaved to put that money in their blood sucking bottom feeding parasitic 'banks'.
I'm trying to figure out how this "haircut" would work.
Let's say Demitri has 10,000 euro in the bank. He . . .
Aw shit ... never mind.
If there is no bail in and this is a malicious rumour to sway the people then the EU banksters are criminals and do not want to let democracy live. They want to continue the enslavement of the Greek people, starve the poor and kill the sick.
OXI
To be a slave you actually have to be in a job ....
Media Matters (Think Progress) intern?
I wonder what the polls would look like if the referendum had been been framed:
how does this translate in greek?
kick can -> Nai
crush can -> Oxi
Correction:
Try to kick the can
or
Try to kick the can
The situation is still totally fucked whatever happens.
Can't kick the can.
Take Euro 8,000 and move to Cyprus. Lightning doesn't strike twice.
Worthless shares in my Greek bank, try to sell them on Craig's List.
In socialist eurozone, bank robs YOU!
Greek banks borrowed 80 bn Euros...never mind the Rothchilds, it be the Greek banks themselves who are impoverishing a nation. I suppose, employing ZH KremlinHasbra agitprop, if it's a bank, it is Jooooooo.
http://www.theguardian.com/business/2015/apr/24/greek-debts-what-does-it...
Anyone that keeps anything of value in a bank deserves to be shot through the head multiple times.
Take a lump of coal and put in a sock, and knock the shit out of anyone that thinks otherwise.
According to FT, that being the Financail Times, a UK publication which pampers to a readership predominant of the City of London whose bankers and financiers have no interest in a "no" vote.
i don't go to a British paper to read the Greek news, specifically a journal whose ownership has a vested interest in mis-informing.
every country in the eu now have their bank deposits held hostage by the maggots. do what we say, vote like we say, or your bank account gets it. troika is now de facto dictator of the ez.
Note the 2012 figures...look what happened after that 2011 EU bailout....then what Greek governance and populism did the following two years.
Greece: Debt evolution
Millions $ % GDP $ Per Capita
2014 421,259 $ 177.10% 38,348 $
2013 423,841 $ 174.90% 38,309 $
2012 391,467 $ 156.90% 35,217 $
2011 495,488 $ 171.30% 44,516 $
2010 437,867 $ 146.00% 39,185 $
2009 419,838 $ 126.80% 37,470 $
2008 389,208 $ 109.30% 34,826 $
2007 328,908 $ 103.10% 29,525 $
2006 282,843 $ 103.40% 25,451 $
2005 243,123 $ 100.00% 22,404 $
2004 227,829 $ 98.60% 21,437 $
2003 190,070 $ 97.40% 17,882 $
2002 150,553 $ 101.70% 14,210 $
2001 136,014 $ 103.70% 12,909 $
2000 130,201 $ 103.40% 12,585 $
1999 132,385 $ 94.00% 12,968 $
1998 129,291 $ 94.50% 12,694 $
1997 131,446 $ 91.60% 12,234 $
1996 138,457 $ 94.46% 12,870 $
1995 127,874 $ 93.01% 11,982 $
1994 108,191 $ 92.36% 10,233 $
1993 103,131 $ 94.23% 9,857 $
1992 87,802 $ 75.14% 8,483 $
1991 74,415 $ 70.17% 7,262 $
1990 67,593 $ 68.73% 6,653 $
1989 44,702 $ 56.21% 4,429 $
1988 41,152 $ 53.62% 4,097 $
1987 32,454 $ 49.25% 3,243 $
1986 25,088 $ 44.29% 2,516 $
1985 21,087 $ 43.80% 2,123 $
1984 18,260 $ 37.64% 1,846 $
1983 15,722 $ 31.56% 1,597 $
1982 15,173 $ 27.54% 1,549 $
1981 13,239 $ 25.07% 1,361 $
1980 12,107 $ 21.17% 1,256 $
http://countryeconomy.com/national-debt/greece
You are making a big mistake in MHO.
The GDP went to negative growth starting in 2008, it was collapsing. You have to show the GDP numbers to make sense of this.
2008 was the US Financial Crisis. The Great Recession. Top of US Housing Bubble was Oct 2005, but some parts of the Housing Bubble continued after that.
When the USA gets a cough or becomes corrupted with fraud, counterfeit Financial ratings, Accounting Control Fraud, Crony Collusion between Legislators, the FED, Banks, Auditors, and Financial ratings organizations... well the whole world gets sick with more than just a cough.
I am surprised that there is no mention of a possible war between Europe and the USA for the Fraud. But that is why the FED had an open window of Loans and a lender of last resort operation for Europe. Surely part of the $700 Billion was intended for European Banks.
2008 Greece GDP was $342 Billion USD.
Shrink that by 33% and the Debt % to GDP... gets hit by Greater Recession, EU Recession, Mistrust in the EU for Credit & Business, Mistrust for Communists in Greece, ... what else?
Greece took the biggest Private Restructuring of Debt in History in 2012, then a pop in GDP, then... a fall, then an election of Communists.
Sounds like a European Crisis in Trust... or that the industries in Greece where hit hard by the Recession... like tourism or Russian Sanctions or EU Countries clamping down on Trade Deficits or Trade in General.
Or like the Effects of Austerity... slowing down the velocity of money moving within the Country.
2010 seems like a key year.
This was the EU Recession. All countries would be suspected of protectionism of some kind by 2010.
appreciate your analysis, but wasn't there a EU bailout of the Greek gov't in 2011?
FT propaganda of the best kind! But why not? Take care of your people FT. See if the YES vote wins.
Start printing the Drachmae.
Well shit my conferdrated grits.
YES or NO?
Just betting it's a Yes. Greeks trust their own political institutions even less than the EU. Would you trust Amerikan politicial governance over any others at this point? I wouldn't w/o evidence. Anyway, Happy 4th of .... nothing to do w/ current Amerika.
Haircut or Steal, wouldn't make any difference even if they stole 100%, 6 months time they would be back to steal again. You can't kill a parasite by keep feeding it, you have to starve it.
Haircut or Steal, wouldn't make any difference even if they stole 100%, 6 months time they would be back to steal again. You can't kill a parasite by keep feeding it, you have to starve it.
..
Yeh, so why doesn't ZereHedge changes its headline to reflect the truth? It kinda helps the Yes vote.
Hey Greece, remeber this.......way back in 2012???
Greece Spends Bailout Cash On European Military PurchasesSubmitted by Tyler Durden on 01/09/2012 13:33 -0400
"While European leaders and International Monetary Fund representatives continue to blame Greece for the impasse in negotiations over the terms of Greece’s bailout, a Saturday report by the German newspaper Frankfurter Allgemeine Sonntagszeitung reveals the IMF vetoed a compromise that cut military spending proposed by the European Commission."
http://www.faz.net/aktuell/politik/spannungen-zwischen-eu-kommission-und...
http://www.change4all.eu/change-in-greece/detail/europe-offered-greece-a...
Well if the government of Greece believe that allowing banks to steal money from the people of their country is in the best interest of the people then I guess that is what they will do.
Most likely they do not believe that thievery is in the best interest of anyone except the banks.
The government of Greece should nationalize ALL of the banks and then create the money out of thin air that they plan to steal. The banks have the ability to do so. They are just deciding not to.
So called haircuts are THEFT. Giving it the name of "haircut" changes nothing. Thou shall not ...
A real holocaust of the Greek people.
You are all looking at the wrong man with a razor.
Russia has already shown the way by confiscating the monthly pension payments of the population.
Sure, the monthly checks go out-- but now the principal is in the hands of the govt.
And there's that lovely fat US 401k piggy bank sitting all alone on the shelf with a hammer in the drawer beneath it.
This is capital that is very easy for the authorities to get their hands on with an overnight decree and very slow and hard for the actual owners to move to safety (i.e. to someplace beyond the grasp of the authorities).
One rule change aaaaaand... it's ALL gone.
Screw the pennies sitting in your checking account. This is where the big money sits. You think desperate governments anywhere will leave such a pile of loot in peace while their own finances go kablooey?
Tarabel, already done in the U.S., and most victems don't even know it......yet. Those that sold their equities and went to money market usually end up with U.S. Treasury bonds in that money market account.
This FT story about a bail-in is spurious. Governments, not private banks, decree bail-ins. If Greek banks are preparing for a bail-in, they're engaging in conjecture. Therefore, the FT is reporting about mere conjecture, which is lousy journalism.
Or is the FT's agenda to add to the fear-mongering?
OXI
You notice they're not offering a referendum on whether the banks can steal the depositors money, are they?
Where is Leonidas when you really need him?
This is another way of saying, come next week we will allow all bank suckers (I mean depositers) to keep up to €8,000 but anything above that gets replaced with drachmas. Opa!
The author of this article is ignorant on how the credit money system works.
When you are hypothecated for a loan, the bank creates new credit and then posts it to your account. Some call these numbers just created as on accounts. These numbers are a liability to the banker and an asset to you.
Pay attention now, I am speaking slowly: WHEN…YOU …HAIRCUT…YOU….TRIM…. THE …..DEBT…INSTRUMENT. Haircuts are not the taking of general purchasing power, what today is mostly bank credit about 97% of the money supply.
The debt instrument, created at hypothecation, makes demands of its credit over time. The credit is what we call money today. Your debt instrument recalls its credit in its accounting period.
OK.. Got that? Demanding on-account credit (money) is NOT THE SAME AS HAIRCUTTING THE DEBT INSTRUMENT. Haircutting releases the credit to circulate in the supply.
A BAIL IN IS NOT HAIRCUTTING. Geez. The monetary ignorance is astounding. A Bail in is the opposite of a haircut; A Bail in reduces money in supply.
When a bank does a bail in, they typically SWAP bank stock for your credit as money. Banks do Magick swapping as part of their “power.” They will swap something for your money I will guarannnnnnteeee it.
Bank stock is a banker liability swap for your money .. also a banker liability. The bank says to you, OK we took your general purchasing power and traded you our bank stock, now you are a part owner in our bank. Banker then says, thanks for your credit money that we created for you anyway from nothing.
Why are bankers doing bail ins? Because they are on the hook for derivatives, especially interest rate swaps. Derivatives pay first, so if banker gets in a jam, then need general purchasing power to pay the derivative holders. Yes, the law was changed so that in court, a derivative holder has more power than a stock holder.
Another sneaky tactic of the banker for bail ins, is to convert the credit as money to bank stock, and then sequester the stock. What is general becomes specific as it is a named stock. Then the stock can be swept into a shell company, and then the company collapsed.
Good luck in court getting your money back. Bail ins in Cyprus were aimed at the Russians, and were really an act of war. Russian money was confiscated for the most part.
As usual, Putin held his fire and took it.
Excellent post, but I don't think you're exactly correct.
Banks (unconstitutionally, at least in the U.S.) create money via fractional reserve lending. i.e., lending out depositors money without deducting that money from the accounts, thus money is created (imagine an infinite loop where everyone borrowed the same $100 from the same bank and then deposited it into the same bank, the total money supply on the books would be billions, yet only $100 would ever exist).
I don't see how confiscating some of depositors miracle money and giving it to the EU will not work in the (very) short term.
JPM & GS needed our deposits for FDIC insurance for the next phase of banking after the broke down Glass-Steagal & caused the 2008 Financial Collapse.
Private Credit by Deposit Money Banks and Other Financial Institutions to GDP for United States
2011: 189.51640 Percent (+ see more)
Annual, Not Seasonally Adjusted, DDDI12USA156NWDB,
https://research.stlouisfed.org/fred2/series/DDDI12USA156NWDB
But the Trend indicates they don't rely on Deposits to create more loans or Debt instruments. Unless you think there is a case for exponential increases based on larger deposit holdings.
Or do I have the wrong chart??
Largely think I agree with... what I think you said. In the end you said the stock could be quarantined/sequestered and the Depositor end up with nothing.
"Bank stock is a banker liability swap for your money."
I did not get this from my Pleb Business Education. Bonds were Liabilities and Stocks were Equity. Somehow Stocks just come in last and are not entitled to priority or claim in Bankruptcy.
If I have $100 grand in the bank and it reduces my balance to $70 grand, that is theft. Plain and simple, regardless if they give me worthless stock or not.
That money I put in the bank was not 'credit' money, it was money I earned without credit being involved.
There is nothing magical about it. Your theory may be correct if I borrowed $100 K from said bank and held it in my account, so the $100 k was not mine to begin with anyway and I end up getting shares of the bank I still have to pay for.
How is this even possible? How can a government contemplate the wholesale confiscation of personal wealth? In the U.S., wouldn't that violate the 4th amendment? Would it be implemented as a One-Time Tax? Perhaps, a "Personal Mandate" to support the banks?
What. The. Hell.?
Today: Greece.
Tomorrow: France, Portugal, Spain, & Italy.
Next weekend: Your turn in the barrel.
To A Latvian, in case you were aiming your comment at me:
Fractional Reserve notions are not really operative anymore.
When somebody who is credit worthy shows up to get a loan, they get the loan. Banks loan first and find deposits or reserves later. If they need reserves they can always go to the FED discount window, especially if they cannot get it on the overnight market.
In other words, people think that reserves are a lever for managing credit formed, but that is not the case. In the days of gold, when gold was held as reserves that was somewhat operative.
Banks loan first, then find reserves later, and they always find reserves. The Central Bank is a creation of the banking system, and was created to do this ultimate backup function. Central Bank is lender of last resort to banks. Notice that QE money tends to buy debt instruments out of reserve loops, and hence those "assets' are held high, thus re capitalizing banks.
There are some excellent sites where you can learn about modern monetary theory. I would recommend starting here first though:
www.sovereignmoney.eu
Why? Because MMT theorists do conflate government wtih private credit issuing banks, thus confusing cause and effect.
By the way, the volume of credit created is a function of Open Market Operations. Only the interest rate lever controls volume of credit. Reserves have little or nothing to do with controling credit creation.
The main evidence of this is the interest rate on my savings account. I have no Incentive to keep money in the bank after 15 years of low interest rates in a fee environment for ATM withdrawals. The banks care nothing about my deposits.
But also I don't disagree with what you say about MMT and the FED.
ECB-IMF SHELL GAME ON GREECE
A €7 billion trench from ECB should have been released to Greece on 11 May 2015 but that never happened. Where would this money have ended up?
From Bloomberg figures*** we learn that by 13 July 2015 €2.8 billion should have been payed to the IMF but Greece defaulted on the IMF but by 20 July €3.8 billion has to be payed to the ECB.
So according to plan A, a Total of €6.6 billion should have been payed to the IMF and the ECB by 20 July. So, if indeed the ECB would have payed to Greece the €7 billion bail-out, €2.8 billion would have immediately flown into IMF’s coffers and by the 20th July the ECB would have received €3.8 billion.
So the simple calculation learns us that €7 billion minus the €6.6 billion makes a minor plus of €0.4 billion= €400 million. One time pensions pay and ….. it’s gone! https://www.youtube.com/watch?v=-DT7bX-B1Mg
Greece €400 Million Short For Wage And Pension Payments, Rushes To Pass Troika-Friendly Laws http://www.zerohedge.com/news/2015-04-28/greece-%E2%82%AC400-million-short-wage-and-pension-payments-rushes-pass-troika-friendly-laws
Greece Owes $1.2 Billion To Drugmakers As Government Can No Longer Afford Basic Medical Supplies http://www.zerohedge.com/news/2015-05-27/greece-owes-12-billion-drugmakers-government-can-no-longer-afford-basic-medical-supp
***Bloomberg Figures http://www.bloomberg.com/news/articles/2015-04-23/greece-s-scary-calendar-of-debt-payments-due
THE ECB TAXPAYER IS FUNDING THE IMF NOW INCLUDING THE UKRAINE WAR!
The IMF doesn’t want to negotiate anymore because they know Greece can’t pay anymore and that it all depends on the ECB now taking an haircut on which they hypocritically insisted on.
The IMF is making even more blunt proposals for a Greek takeover than the Troika. Both want to pirate Greece like the IMF did with the Ukraine which war is directly sponsored by them. The IMF didn’t want to further finance Greece which Germany insisted on in the beginning.
With the IMF sponsoring a NATO war in the Ukraine and both Germany and Greece in it, NATO alliances become a bit murky. I am sure that Merkel and Schäuble are not happy with the Ukraine war and IMF’s money in it while refusing to back NATO Greece.
The U.S. will fight the Russians till every last Ukrainian.
IMF Says It Will Continue Lending To Ukraine Even After A Default http://www.zerohedge.com/news/2015-06-13/imf-says-it-will-continue-lendi...
Here’s who is most exposed to a Greek default http://www.marketwatch.com/story/heres-who-is-most-exposed-to-a-greek-default-2015-06-23
Excerpt:
As of March Greece’s outstanding debt stood at €312.7 billion ($349.6 billion).
Of that, €231.2 billion is in the form of loans, with €205 billion belonging to the institutions, or the “official” sector (as opposed to the private sector). The institutions include the International Monetary Fund, the eurozone’s European Financial Stability Facility and bilateral loans from eurozone countries.
The fact that so much of Greece’s debt is seen in the hands of official creditors is one reason analysts say investors have remained relatively sanguine throughout the latest chapter of the drama. “The private sector “has almost no direct exposure to Greece anymore,” wrote strategists at J.P. Morgan Cazenove, in a Monday note urging clients to get back into German stocks.
Needless to say that Greece is on plan B now but will there be a Plan C,D and E later on or will there be a firm plan B?
Or maybe the ECB is so used to working on fire alarms that they like to kick the can, as usual.
But with the IMF acknowledging the Greek problem situation Germany can’t all act as if their noses are bleeding.
They must give a reaction on this ‘new’ reality. The Parrot is dead https://www.youtube.com/watch?v=4vuW6tQ0218
By Sunday we know …
Time for the Greek people to start Lynching the banksters.
BY STUDYING THE CHINESE ELITE AND THEIR INTIMATE TIES TO THE ILLUMINATI, IT IS CLEAR THAT MODERN CHINA IS AN ILLUMINATI CREATION
The Chinese elite is a merger between the Communist leadership, Hong Kong tycoons, and the criminal Triads. All three factions derive derive their power from Illuminati collaboration.
China has appeared autonomous because the Illuminati developed the country internally, funding 'revolutionary' political parties spouting nationalist slogans. The reasoning was that the Chinese people would revolt against overt foreign domination, but embrace their place in the NWO if they believed they were in control.
Lord Bertrand Russell revealed this plan in a report on China published in 1920:
'Out of the renaissance spirit now existing in China, it is possible, if foreign nations can be prevented from wreaking havoc, to develop a new civilization better than any that the world has yet known.'
The fascist superpower we know today was created in the second half of the 20th century by the bogus Cold War dialectic of communism vs. capitalism.
The stage was set in 1898 when Britain and China signed a contract stipulating that Hong Kong would be handed back to the Chinese in 1997. This meant that the fierce Communism of the mainland and laissez faire capitalism of Hong Kong were always destined to merge.
The process of unification gave rise to the current China power elite.
Because Communism is an Illuminati creation, the Chinese Communist Party (CCP) are by definition, Illuminati agents.
Mao was a Soviet agent. He was a product of the Yale in China "Missionary" i.e. OSS, Skull & Bones program.
The CCP implemented policies that set the foundations for an Illuminati super state.
Wang Hao, a historian at the China Institute of International Studies, has recorded that Mao's deputy Zhou Enlai met David Rockefeller in June 1973:
'When meeting David Rockefeller, Zhou said to him that it was necessary to find appropriate methods conducive to the development of the trade between two sides under different political systems.'
The corporate-communist merger began when Deng Xiaoping came to power in the late 1970s and introduced his market reforms with the slogan "to get rich is glorious."
The most powerful HK tycoon is Li Ka-Shing, the richest Asian in the world and an Illuminati insider.
Other prominent tycoons are 'HK's godfather of real estate' Henry Fok, 'The king of gambling' Stanley Ho and the man who would be chosen by Beijing to head Hong Kong after the departure of the British, Tung Chee-Wa.
It is important to realize that these men rose to power and prestige in a British colony, i.e. they were vetted by the City of London to be colonial leaders. This is illustrated by the rise of Li Ka Shing.
The Triads is a collective term for the secret societies and criminal groups that originated in 18th century China with the aim to bring down the Qing dynasty.
For over a century the Illuminati waged war against the Qing dynasty. The Triads were their vehicle for subversion and revolution, in a similar fashion to Freemasonry in Western revolutions.
Today the Triads are best known as the world's largest criminal entity, involved in drug trafficking, prostitution, money laundering etc. They exist in any country with a large Chinese population, notably in Canada, Britain, USA and Australia.
Of the Triads enormous global reach Fritz Springmeier has written:
'The Triads are the most powerful criminal fraternal group in the world, except for the Illuminati and the families that make up the Illuminati's Committee of 300. The Mafia Is small peanuts compared to the Triads.
A key source of this power is that they partner the Far East Lodges of Freemasonry in running the Asian drugs trade, notably the production of heroin in the 'golden triangle' in South East Asia, second only to Afghanistan.
n the early 80s, the Chinese government convened a secret meeting between the 'Dragon Heads' of the major Triad groups operational in Hong Kong. The communists informed the dragons that if they agreed not to interfere with the takeover transition, they would be allowed to continue their criminal activities without interference.
The mainstream media portrays China as hostile to Western power. However, by studying the triumvirate Chinese elite and their intimate ties to the Illuminati, it is clear that modern China is an Illuminati creation.
The Chinese elite must never stray from the NWO agenda, for it follows that if the Illuminati made them, they can break them too.
http://www.parenting-healthy-children.com/News3.html
Shorthand; Jooos
yeah no jews in banking or finance, and certainly not disproportionately so and commented on by people all over earth for 2200+ years.
fuck.
You.
If you werent a racist yourself, one might take your zealous defense of a group of people seriously.
but you're dishonest and hypocritical and fuck!
Excellent summary.
Question: if China and the U.S. one day go to war, does that mean that China has gone off of the NWO reservation?
If Greece would just exit the euro, there would be no need for any haircuts. They could avoid the destabilization from the new drachma by switching from the current central banking paradigm to a cryptocurrency. http://1984nomore.com/why-bail-ins-and-bank-runs-should-never-happen/
Teeth,
Having money on hand in on-accounts means that bank's capital position does not need to be as high. In other words, the ratio of loans to capital backing up the loans is reduced if people keep a high portion of their credit within the banking system. BIS sets capital ratios. For example, a house mortgage needs less set aside than a car loan. If people pulled all of their credit out of banks, it would mean that banks ultimately would become more conservative with their loans, as their capital position would constrain them. In general though, credit would re-enter banking system for transactions, as banks have a lock on the transaction economy. Storing money in the bank does help with capital positon, and since Greenspan some savings accounts can be swept into the overnight market, thus lowering cost of capital even more for bankers. BAnks always work on the spread, and right now the FED rate is .2. So a loan of 4% will be a spread of 3.8. Interest paid to depositors reduces the spread and the profits, but helps capital position as money is stored. Since banks are now doing all kinds of securities and other non traditional schemes, they are making money and don't really care too much about paying you for your deposits. But, they do want the deposits to stay there.
Capitol includes debt instruments that can be traded for money easily. For example a TBill is really a bond, and has a maturity date. It also is paid interest. But, it is also considered near money as it can be readily traded for money. Money is general purchasing power, and the TBill/Bond can easily be sold to become general purchasing power provided there is enough "liquidity" in the market.
Note that the FED will always trade their Keyboard money for a TBill, hence QE operations. Liquidity was provided as swaps for TBills, MBS, or any other debt instrument formerly known as capital in a bank. Assets can be debt instruments, and assets can be money, and assets can be hard and physical ...like a house. Real assets like intellectual property and the patrimony of a country are not comprehended by a credit money system as they are not necessarily fungible to become attached to double entry ledgers.
Mortgages held on the books can also be considered Capital. Insurance on the mortgage improves the capital position (hence the housing bubble). Banks want to be able to sell their mortgages or other assets for general purchasing power if push comes to shove, and they need liquidity.
Capital Ratios: If for example, mortgage backed securities are held on the books as capital, and then the housing market goes down...what then? What happened to the Capital position? The Banks became exposed because their capital position was marked to market, and market declined. Rapidly declining house prices and being unable to sell them after repo meant that banks capital was not liquid and declining in vlaue.
Of course a TBill is backed by government, so it is superior and desired above all for capital.
+1
Thx for the primer.
Impressive explanation, thanks, although it will take me years to digest lol!
Great timing, huh? They want a "yes" on the eternal servitude referendum, then they'll take the 30% anyway from the morons who voted "yes" and who have also failed to pull all of their money out of the banks during the many months they've had to do so. And this is why the crooks always win. They only need to easily fool the idiots to get the vote they want in any "democracy."
In the case of Bail In's the bank stock is "presumably" good for money at a later date. That is the conceit that will be passed at the time of bail in.
If the stock is good for money at a later date then who pays it? The market? The banker? Hard to say if it is a liability to the banker or "equity" in a viable marketable company. Whether it is liability or equity is determiined by the small print in the contract at bail in time. If banker gurantees he will pay x amount later for his stock, then it is a liability. Somehow I think that won't happen though.
But, changing names and concepts and law; this in order to morph things, is part of the Magick. Presto Changeo. Economics as taught in school is fraught with errors.
During the presto changeo magick operation a thumb is usually put on the scale; this in order to take rents.
Is this similar to the distressed coal (i.e. Arch) companies and some O&G's now 'offering' company "equities" to retire their bond debt?
You know what would solve all this? If deposits never showed up on banks' balance sheets.
Falcon,
Here is an analysis of the loan I did earlier. There are bad actors all around.
http://www.zerohedge.com/news/2015-07-01/greece-explained-2-cartoons#com...
And yes, I always identify Jewish money power perfiidy since it is so pervasive throughout history. I didn't start out that way, but it became learned behavior in order to understand the currents of history. Man is a rent seeking animal, and Cabala/Talmud has codified rent seeking into an art form. It is indurated down to practice and given sanction despite Mosaic injunctions. This is part of our dark side nature, and should be rejected.
Lin,
China has already outmaneuvered the U.S. so I doubt war. The pivot of Russia to China has created a two front problem for the U.S. Also U.S weapons are asymetric and good for air power/bombing, not land armies holding vast territories.
China has their own money, they are sovereign, and they have access to raw materials and energy. Game over. America is dangerous like a trapped animal and will lash out, but probably reason will prevail before suicide. The millenials who will take over in near future are more cool headed than the boomers who are exiting the stage.
Millennials are spoiled brainwashed socialist wannabes
What are you saying? Cypress was not a single case? You tell me that they lied to me or us?
Perhaps it does not apply to Russian banks in Greece.
Silly finance games. Those deposits aren't sitting in little boxes in the back rooms of banks in cash, they are just numbers in a computer with some loosely related cash in the vaults in amounts necessary to satisfy an arbitrary "liquidity", aka hard currency on hand, requirement. The "haircut" is not necessary, is never necessary because the deposit total is just one side of the equation. What is necessary is to temporarily modify the related restriction on liquidity reserves, NOT reduce the deposit total - either of which results in a release of available cash. Cash isn't created by haircuts, some just gets "moved" into another category. And the situation is obviously extreme, which should trigger a different set of rules but apparently does not. Stupid and short sighted all around, and depositors are about to be unnecessarily screwed.
So the €100,000 you thought was insured - isn't!? See what that does to deposits in the next Euro country, and the next....
The powers invested in the UK government as to who and how bank accounts can be skimmed if a bank becomes wobbly is set out in this UK.gov document:
"UK.gov bank bail-in powers implementation-Dec-2014"
It says that bank accounts containing less than GBP 85,000 (reduced to GBP 75,000 w/e/f Jan-2016) are so-called protected deposits by way of giving these deposits a higher ranking when it comes to bank resolution. They are theoretically protected by the Deposit Guarantee scheme.
Further down it describes a UK Treasury power to change the ranking of any investor blah blah. Which seems to me that deposits of less than GBP 85,000 are not 100% protected from being bailed-in, if a bank were to become totally phucked and there weren't enough investor funds in other groups to bail it out.
The UK Deposit Guarantee scheme only kicks in if a bank fails or becomes insolvent. Careful choice of words by the UK gov and BoE could easily mean that deposits of less than GBP 85,000 are bailed-in in a banking crises with no chance of DPS compensation.
As I have said elsewhere in this thread, the whole purpose of bank bail-ins was for .gov to pass responsibility of bailing out banks from the taxpayer onto investors (eg depositors).
TV News & MSM has virtually avoided all mention of any of this.
http://99getsmart.com/the-truth-about-greece-syrizas-creatively-ambiguou...
Shame on the Financail Times I thought they were better than that. Silly me
See... Socialism and communism works - they haven't run out of money
The large daily crowds at shooting ranges across Ameirca are mostly practicing combat style and precision shooting, and they are doing so voluntarily with their own time and money.
They are not practicing how to hunt duck and deer, although the fundamentals are similar.
Planning and preparation for anything is always..........
time well spent.
There's a rumor out that cookie jars are in short supply. Better hold on to those empty coffee cans.
Bitcoin users and physical gold holders are not affected. :)
Yes, yes, yes, put all your money into bitcoin.
The same bitcoin that was $1200 two years ago, $650 last year and $255 today. Hahahhaha, a 30% haircut by the banks is CHEAP compared to holding money in bitcoin.
And gold has faired a little better than bitcoin, but not much.
Both are losing propositions.
So basically you're fucked no matter where you go. Thanks Bankers....
Bitcoin will eat your world.
Austerity is good for you !
you needet to lose some weight anyway, since constipation has clouded your mindset.
come Monday, Tsipras and Varoufakis get no more welfare payments,
those two liars could end up in Jail for what they did to the Greek people.
well, it's gonna be interesting.
stupid national-socialist fascist fucks ,
crawl back in that hole you came out from.
No = No more welfare handouts for you !
WR;)
I don't doubt that everybody has lied. But according to this article, the biggest liars by far are the IMF, Brussels, ECB, Mutti, Dieselboom and Uncle Tom Cobbly an' all. In fact anybody who represents the creditors.
I'm sending plenty of rope over ... ...
This train wreck has been so slow, if you're dumb enough to still have money in a Greek bank you deserve a haircut and slap upside your head.
This rapid fire referendum has given the usual suspects very little time to organize and try to influence the outcome
This shot across the bow by FT is a valient attempt on behalf of their masters to influence the vote
Interesting times
http://www.ekathimerini.com/198935/article/ekathimerini/business/eba-chi...
""I highly doubt that any authority or public body at EU or Member State level could consider this option, as it would be against EU law and the EBA would immediately start breach of EU law proceedings," Enria added."
Let them try. What has happened in Greece needs to go to a supreme court and the Troika needs to be dragged over so all the world can see.