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Presenting The ECB's "Tools" To Stem Contagion
On Sunday, Greek PM Alexis Tsipras put his political future and, more importantly, the future of the common currency in the hands of Greek voters. It was the political equivalent of pushing one’s chips all in at the poker table and after Sunday’s referendum, Tsipras appears to have been holding a better hand than Junker, Dijsselbloem, and Merkel.
With his grip on power in Greece now virtually unassailable (at least in the short-term), the PM will need to switch gears quickly. Having won the political battle, they must now fight the economic war, and while Sunday’s plebiscite may have given the world some clarity in terms of what the Greek government’s mandate truly is, we are no closer to solving the stalemate which has brought the Greek banking sector to its knees and threatens to plunge the country even deeper into depression.
In fact, Sunday’s vote represents a kind of worst case scenario for financial markets. The fact that Greeks’ resounding repudiation of austerity may well have been influenced by the IMF’s tacit admission that the country should indeed hold out for debt relief from EU creditors sets a dangerous precedent for Europe. Christine Lagarde effectively forced Brussels and Berlin to blink on the eve of the referendum and you can bet that Podemos in Spain, the Socialists in Portugal, and the Five Star movement in Italy are watching closely to see what happens next.
If Greece proves that the will of the people and the threat of a voter-supported EMU exit is sufficient to secure debt writedowns, the experiment that is the currency bloc will begin to crack as soon as this fall when elections are expected in Spain and Portugal. This threat alone will likely be enough to push spreads on periphery bonds wider in the short-term and may well introduce quite a bit of unwanted volatility in EU equities as well.
But that only captures half of the story.
In addition to the negative impact on capital markets from the political turmoil that Sunday’s vote may well spark, the market will now have to cope with the economic fallout as well. The Greek banking sector is teetering on the edge of outright collapse, as is the Greek economy where consumers will soon face a shortage of imported goods as credit dries up and ATMs go dark. Any spillover from this — and make no mistake, there will be some spillover — will exert still more pressure on financial markets as negotiations between Athens and Brussels drag into their sixth month.
Through it all we’re told that Mario Draghi will save the day and that the ECB has the “tools” in place to combat contagion. Here with a rundown of those tools and a look at when and how quickly they can be deployed, is Soc Gen.
Tools to stem contagion
- Accelerating QE. QE is not designed to assist individual countries, but with a monthly firepower of €60bn, it remains a powerful force. Moreover, contrary to the OMT that requires agreement on an ESM programme to be activated for a specific member state, the QE tool is already fully active. Should contagion from Greece become more substantial, the ECB could front-load QE without further notice. The ECB could also seek to step-up QE from its €60bn pace, officially to fight an unwarranted tightening of monetary conditions but within the 25% issue limit and 33% issuer limit. We are doubtful, however, that the national central banks (NCBs), where the bulk of the risk of the QE programme is assumed, would buy anything other than their own national debt. Moreover, were the ECB to substantially increase QE it may be open to criticism of monetary financing at a time when the German Constitutional Court is still reviewing the OMT. If contagion is limited to a few member states, arguing on the grounds of deflation risks for the broader euro area – the justification for QE – may also be more complex.
- ESM and MoU for countries facing tension. Different facilities exist in the ESM: loan, credit lines, bank recapitalisation and primary or secondary market purchase. The latter is likely to be the most efficient and easiest option. The ESM may buy bonds either in the primary or secondary market of any Member States that requested it. The primary market facility is only opened to countries under a programme (i.e. only Cyprus as of now) while the secondary market is also available for non-programme countries whose economic and financial situation is sound. However, in that case a Memorandum of Understanding (MoU) detailing the conditions attached to the facility would need to be approved.
- OMT. The tool to deal with the risk pertaining to individual sovereigns is the still untested OMT (purchases of bills and bonds having a maturity lower than three years). The OMT programme requires the backing of an ESM programme as well as a clean bill of health on debt sustainability. If that is not the case, step one in the prescribed process as set out in the ESM Treaty is restructuring.
The implication here certainly seems to be that the preferred contagion containment tool is the acceleration of QE ("more cowbell" so to speak).
This will come as no surprise to the Zero Hedge faithful. Less than two weeks ago in “Goldman’s Conspiracy Theory Stunner", we remarked that the bank (and Mario Draghi's former employer) seemed to be suggesting that the ECB would actually be just fine with Grexit, because it would give the central bank an opportunity to expand QE. Sure enough, just a little over a week later, the ECB effectively primed the pump by expanding the list of PSPP-eligible SSA bonds.
So get ready, because just as we predicted before we knew what the results of Sunday's referendum would be, "€60 billion/month is about to become €70 or €80 billion and then, once the EGB and SSA markets have been sufficiently cornered, it will be on to euro IG corporate credit before Draghi finally becomes Kuroda by throwing the ECB's balance sheet at the DAX, CAC, and IBEX at the first sign of trouble."
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so it's not just us commentors, even Tylers do dupe posts...
This whole Greek mess is looking more and more like a SNL skit now.
Maybe it really is!
Bloomberg Economics has calculated the total exposure of each euro-area government to Greek public debt. In the chart below, the most-exposed taxpayers appear to be those of Germany, at 65 billion euros, France at 49 billion, and Italy at 43 billion.
The nominal amounts at stake do illus- trate the motives for German resistance to restructuring. Yet a more relevant mea- sure would adjust for a country’s ability to absorb those losses. The picture radically changes when that exposure is expressed as a share of 2013 nominal GDP. On this ranking, Germany falls to No. 8 with an exposure amounting to 2.37 percent of its economy’s size. France falls to No. 7 (2.38 percent) and Italy to No. 4 (2.74 percent). Slovenia (3.06 percent), Malta (3.03 per- cent) and Spain (2.78 percent) top the rank- ing, meaning these countries have the most to lose if Greece decides to write down its public debt.
http://www.bloombergbriefs.com/content/uploads/sites/2/2015/01/MS_Greece...
Watching bid/ask spread dynamics on EURUSD this morning screams CB/Algo intervention
So-called "contagion" has been mild so far.
"It's contained to sub-prime" - Ben Dover
I bet the Germans have also calculated their exposure to Franc, Italy, and Spain, to name a few.
One has to wonder where Germany, France and Italy got all of that money. Oh, right, their banks created out of thin air when they created the debt.
It is all a bogus game.
Has everyone watched the movie, "The International"?
lol. We've been in an SNL skit since everyone was criticising Pres Bushy about weeks of vacation time at his TX retreat in early 01.
Only this skit was written by Stephen King.
"We've been in an SNL skit since 1971" -- fixed. Other than that, pretty spot on. I would say 1913, but even after the Fed, money creation still required PMs up until 1971. After that the world returned to enforcing reserve status with a gun.
So... it's the "morning after" in Greece.
I have a feeling that, even though they voted "no", Greek people still lost. Obama and Brussels will not allow Greece to exit the union as Greece is a strategic NATO partner. So, "toxic" Varoufakis resigns - and here comes the new financial deal, Greece will retain the euro, maybe lessen the austerity for a while (placate the plebs), and welcome back to status quo. Can kicked down the road one more time!
Resistance is futile - you will be assimilated...
This from George Ure's Urbansurvival.com:
Well, not all Urban readers, just a fixed income guru who offered this idea:
“If I were running Greece – I would re-submit the last compromise they offered which is I believe a 75% haircut and a repayment schedule of 1% for 30 years on the balance – and give them 24 hours – that’s our negotiation. It would be turned down at which point I would inform them that they the EU will be sued in the event they try to kick Greece out – there is no such mechanism for them to do so. Then I would arrest Papandreou (sp) I think he was running Greece back then and all members of his Gov’t that worked with Goldman to cook the books to gain entry into the EU. I would arrest every Goldman employee in Greece and bar Goldman for any future business for ever and I would rid the country of every EU bureaucrat- I would declare all EU debt null and void as entry was made on false premises – bankers get zero. I’m sure they have already been printing Drachma. I would finalize the gas pipeline with Russia as well as the trade agreement for fruits and vegetables – I would ink a lease in perpetuity for a deep water port with China and let the EU get ready to pucker……..”
Seems like a plan to me…let’s see if the Greeks are ready to stand up and kick some post-Icelandic Euro-ass, shall we?
Which gets me to the point: The real reason the markets are down globally has less to do with Greece than “You can’t fool all of the people, all of the time…”
And that list included Iceland and now includes Greece.
A couple of more and we’ll have a trend.
And that would mean the leach-class of bankster’s who own the money-changers franchise would have even more trouble ahead.
Couldn’t have happened to a nicer bunch of pricks.
But the money-changers aren’t throwing in the towel yet.
Ever walk off a used car lot saying “No, not interested”? That’s what Greece just did.
On a used car lot, the salesman would shout after you “Wait…If I could sweeten the deal to (xzy) would you take it?
That’s what’s going on now as the banksters are lining up the “If I could sweeten the deal…” pitch.
If the Greeks have 2-drachmas of financial brainpower left, they’ll keep walking /…no, make that run from the used paper lot as fast as they can.
The finance minister of Greece has quit.
Bye.
Bet me he’s sent a resume to the bankster side?
One of the clear views on this comes from Nick Farage who writes it’s the European Union dying before our eyes… My, that has a familiar ring to it, doesn’t it?
You know how the US is going through a Mexification as South Americans flood in and drive down wages? Well, same thing in Europe. Just wait till the container ships start bringing in goods made by people who don’t have unions and who don’t get 9-weeks vacation…
That’s the real reason markets are down: the global trade game is dying.
http://urbansurvival.com/
From Risk.net 01 July 2003
In November 2001, the Greek finance ministry’s public debt division made a public statement about its debt management strategy. It acknowledged that its debt was a ‘critical macroeconomic parameter’, and pledged to reduce debt servicing costs by means that included ‘the extensive use of derivatives’. Apparently, this was not enough for Brussels. In February 2002, the European Commission pointed out future deficit forecasts by Greece relied ‘primarily’ on achieving reductions in interest costs. It called for Greece to reduce its ‘very high’ debt ratio, and to provide ‘more detailed information on financial operations’.
Although Greece’s public debt division points out that it uses 18 derivatives counterparties, there is no doubt that the division, which is headed by Christopher Sardelis, has a particularly close relationship with Goldman Sachs. Indeed, the account has been handled personally at Goldman Sachs by Antigone Loudiadis, the London-based European head of sales for the firm’s fixed-income, currencies and commodities unit. Highly respected by other dealers, Loudiadis has enjoyed a successful career at Goldman, joining the firm’s partnership committee and attaining her present position in 2000. According to sources, in 2001* Loudiadis and her team put together a deal aimed at alleviating Greece’s problem of debt ratios and high interest costs.
Cheebugga, Cheebugga, Cheebugga!
Have you considered a tourniquet around your neck to stem the contagion?
I'm probably wrong again but I don't see how Greece can't exit the euro. The troika members will do everything short of a blockade to keep Greece down and out in order to make it an example of what happens when a member doesn't accept centrally planned austerity. All this in an effort to scare voters in Portugal, Ireland, Spain and Italy straight. Meanwhile, draghi has to spend a couple of hundred billion euro over the next few years buying the debt of those countries.
Fuck. how many morons parrot this line?
Whether or not Greece leaves the Euro is immaterial. Contagion is a factor of debt forgiveness. How much is the haircut to bondholders, and which type of creditors get preferential treatment. And how much more capital will be spilt at the alter of god-forbid-bondholders-should-ever-suffer-the-austerity-that taxpayers do ?
At some point (that the world has likely already passed beyond), debt forgivness isn't possible without nation-state default. Think Lehman on a nation-state level. We've all seen the nation-state fractional reserve leverage levels. . . They make Lehman look AAA-credit worthy in comparison.
The central bankers will be playing pocket pool for as long as their ship's deck remains relatively level.
Which nation's bankers get broken over the ship's propeller?!?
Isn't this just another step closer to one world government and one world currency?
We around here know those one world currencies...and they aren't Bitchcoin. Give me the phyzz....
Its a huge step towards something, I see it going to extremes of either Globalism, or the world fracturing into small states. In the US, I could easily see a Republic of Texas, and a "Peoples democratic republic of Californian" in the next 20 years.
Economically speaking, Texas and California already are pretty much independent.
I wish that were true.
We have watched effective defaults on debts for years...seemingly by everyone. The US has not paid off a debt in decades (if ever) as it simply rolls it over into new, even greater unpayable debt. This is simply a matter of paperwork. The money never really existed anyway as it was just numbers in a ledger. They could roll up ALL of the Greek debt into a "new" financial instrument and make it mature a hundred years hence, and not a soul would care. As a matter of fact, the more financial instruments in existence, the richer the powers that be become. This is a play, a creation to generate the desired effect...or opportunity, as it were. Do you think ANYONE thought the Greek debt was sustainable or repayable?? If not, then why did they do it or allow it. Greedy bankers sure, but they still answer to a higher power. There are rules, maybe not made by us, but everyone answers to someone. This is much worse than a conspiracy as it is being done with the full knowledge of its victims.
Load up that crack pipe knowing full well it will likely kill you. Yes, you are a victim of the initial addiction, but this is not the first time this has happened. We should have known.
Why is it that collectivists depend on there being no collective memory? Debt has been derided and warned of since the recorded word.
Have you noticed Oldwood, the number of people out 'n about today on media, almost all established usual suspect left-wingers (funny that) who are stridently trying to pin all economic problems of Europe on the fault of a currency (a mere trading exchange settlement mechanism), and not due to ubiquitous massive debt growth - so large that it has more gravitational pull than Jupiter, and now threatens to dislocate earth's orbital geometry, and may bring the moon so close, that the rises in tides will exceed the rise in sea level, from AGW, by about 9 orders of magnitude?!
Yeah, well, anyway, apparently the unprecedented debt burden, and interest burden, and imparted ZIRP and mark-to-model 'accounting', has no effect on economic activity, aggregate demand, savings or investment, markets, housing foreclosures, or all govt policies ... according to these people.
Nope, what really ails Europe, is a stinky currency, because it's like, stinky 'n stuff. And if we get rid of the stinky currency, apparently all the toilets will suddenly straighten up and fly right, thus the economic stink will dissipate, of its own accord, at that point - PRESTO!
"Well, ... what about the debt then? ..." </crickets>
When will someone point out the idiocracy of Krugman's "Debt is a zero-sum game" statements? Especially in light of all these defaults.
I brame Boosh!
I think ZH-ers have an over supply of popcorn. So here's the over supply of entertainment to meet the demands.
Send oversupply of scotch to me.
I'll make my own ice.
call it what you will. Central banks in reality have only one tool. ................CTRL-P
This is all they do, thrown conjured so called money at the problem hoping it goes away when all it does is dilute the currency and pass off the losses to the population.
Omitpotent my ass. Nothing more that a common criminal enabled by political common criminals
Conjured money
that's all they got
but they got alot
but it's a naught!
Whats even more absurd it that Wall street, the people, this very board exploding with glee on QE announcements and everyone else cheer for it, thinking, alright free money, now my portfolio will go up 10%. When the reality is, 10% of their wealth, labor and savings was stolen at the start and your only hope is to try to gain it back.
Yep free money. A dumbed down population that not only stand in line to get sodomized but willingly drop their collective pants and purchase their own lube saying "Please do me first".
just print money and bail everyone in the world out, then we are all debt free!!! Then crush those old currencies.
What debt?
"Money" is created from the ether.
Banks/corporations/insurers are then gifted it to engage in usury on the back of the people.
There is no debt, only: lust, greed, and avarice that is condoned and celebrated.
Mm,mm,mm. Ether!
MOAR will solve the problem, ha ...
Time for Plan B from the loan shark's playbook: starve Greece into submission. When there is no food, and no gas, and no cash, and no economy, and the Greeks are killing each other in the streets for a cup of rice dropped from an AID plane ... only then will the ECB anounce "check mate"
Nobody is gonna drop cups of rice.
Peace bombs however are more likely.
So the ECB is evil for loaning them money....and now they'll be evil for NOT loaning them more money?
Events like the one in Greece have the potential to easily upset the fragile balance of our economic system. As look back through history and different economic cycles it is clear we have seen this before. It is difficult to predict what event might trigger a negative feedback loop, but contagion is a powerful force.
The article below explores how potentially devastating contagion can be and is comprised of several subjects. It joins together the idea the system isn't ready, with the danger of derivatives, a growing lack of faith in currency markets, and how this could all be molded to increase calls for a new world currency.
http://brucewilds.blogspot.com/2015/07/contagion-potential-reaching-new-heights.html
Which banks hold the most shadow banking bets on Greece (and Portugal, Italy and Spain)? They got the loans off their books. But ... did they corner the market in drivatives? What haircut amount triggers those derivatives?
TBTF? Financialization?
Liquidity?
Leverage is great on a run up. It smarts when debt is written off.
Mark to market is as good as a firesquad and has more karma.
A loss of faith in all paper promises/bullshit will be the great equalizer. The "rule of law" ended some time ago. Welcome back the robber barrons and another period ruled by men.
ECB smokes dope.
Good stuff or bad stuff?
ECB smokes dope.
ECB smokes dope.
this is a soul destroying repetitive job... pressing ctrl-P
note this little, seldom mentioned but very important part:
"We are doubtful, however, that the national central banks (NCBs), where the bulk of the risk of the QE programme is assumed, would buy anything other than their own national debt."
as a reminder, this EUR QE is 80% an EuroSystem's participants QE and 20% an ECB QE
in other words: it's the Banque of France, the Deutsche BundesBank, BankItalia and the other 16 national banks that stem the bulk of those purchases, on their balance sheets
and so, correctly, the FRED statistics show the whole EuroSystem's balance sheet (ECB + 19 national banks) at the 2.4 trillion mark https://fredblog.stlouisfed.org/2014/05/the-ecbs-balance-sheet-continues...
meanwhile, the FED is at 4.5 trillion https://research.stlouisfed.org/fred2/graph/?id=WALCL
in currency war terms, the smaller is the loser, isn't it?
"in currency war terms, the smaller is the loser, isn't it?"
Why ?
two views, one from exporters and one from the bankers and financial markets
exporters: print, baby, print, and keep that currency down!
bankers and financial markets: print, baby, print, and make us rich!
so from the first point of view, the benchmark is the FX, be it Yuan in Dollars or EURUSD
but for the second point of view, a small CB balance sheet is the sign that the CB does not love them enough
simplified, but I think it fits
So, is it your opinion they will expand QE more, much more? Seems like some variety of that plu sother measures of taking away the bad actors' credit cards, so to speak, are what will happen.
depends what markets are going to do, both in EURUSD and eurozone sovereign debt terms
exporters, bankers,...
what about the general interest ? Too abstract ?
not at all. but it depends from your ideology, your socioeconomic situation, and more
imho, price stability is key. everything else results in more market distortions, more speculation and less real economic activity
on the other side, devaluations hit the small holders of currency the hardest
the hoplessly in debt are relieved, while the seriously rich are nearly not touched by it
No, not too abstract, but not in the interest of TPTB.
The economic system is rigged to benefit the owning class. The financialization of the economy – accelerated especially by Reagan and Thatcher – has made even simpler for the owners to accumulate even more power/capital at the expense of everyone else/the general interests.
"Reagan and Thatcher"
Interesting you do not mention a mainland European politician.
I could as well. Reagonomics and TINA we're, however, US/UK coined terms - and as all western politics it was US who framed the agenda.
And how many knows of Schlüter (the Danish primeminister of the time - and loyally implementing his masters agenda. It's not a new game)?
looking at wikipedia page of Schlüter now.
Never heard of the guy.
Are you Danish ?
*DELETED BY NSA*
The game is to make your currency devalue as much as possible. Inflate the debt away and at the same time boosting the export.
The more fiat is printed (and handed to the corporate overlords) is equal an indirect devaluation of that same fiat. That’s the official story. What’s often left out is the fact, that all fiat is debt-based. That is what’s creating the counter-intuitive price-deflation as a result of the monetary-inflation (the text-book-definition of inflations is just an expansion of the monetary base – in that sense we’ve already got hyperinflation). Debt and the rent on the debt need to be paid. And since all ‘money’ is created as debt there’ll never be enough money to pay the debt back – collapse is built into the system. The Greek scenario is a good example – a deflationary collapse as a result of an inflationary monetary policy.
thanks, my thoughts are not fully formed on this issue, so will ponder it a little longer.
"collapse is built into the system" sounds so deliciously... like doom
now, if you trade the words "collapse is built in" with "some defaults are inevitable"...
as a reminder, the "collapse theory" is based on the assumption that defaults are avoided at all costs by a system that prefers to face the risk of collapse instead of allowing defaults to happen
Correct! I said it before and I'll say it again, it was all baked into the cake from the beginning and the further financilization of the economy went apeshit starting in 2009, creating a whole new paradigm of the "haves and have-nots." Just using the Greatest Economy in the World as an example, the average median wage still sits at 1987 levels, while corporate executive incomes are 10 times greater than there 1987 levels.
And, do we really believe the "corporate overlords," (ALL of the corrupt "players," the so-called crony capitalist, et al) were really that stupid and dumb? Or, was it by design? We accuse all of the CB players and their cheerleaders of "painting themselves into a corner," or "pushing on a string" or failing to understand "aggregate demand" with neverending QE AND ZIRP, but they don't give a shit - they are drunk with opulence and riches.
Yes, the average person is experiencing deflation more and more as this folly continues. I believe TPTB have displayed a great ability to protract this circus (global QE) and it could extend for quite some time.
It's a fiat world and all fiat is going to it's true value, zero.
I wonder what is on China's balance sheet?
if that is its true value, I am happy to come to relieve you from your fiat.
My fiat has been going to more and more revenue-generating assets. However, the tax benifits of certain charities has actually lead me to do just that.
Sorry sucker, you're a tad late, should have caught me before April, now get the fuck off my land or it's piratepie for dinner.
A type personality ? Not good for your heart I believe
Potentially. I spent 3 hours on a bike and then three hours paddling a river on the fourth. Epic day with family and friends. My guess is that my other hobbies will kill me first. Flying, being the one where I have the heart attack and then go out in a ball of fire. So be it, life is for the living anyway.
I just saw the link seems disputed anyway, so what do I know ?
Paddling a river ? Cool. Where I hang around the rivers seem pretty polluted, unfortunately.
Aim for a bank building?
I'm a cab driver, i'll pick you up and we can both go over there and get some relief.
Someone is buying euros with both hands to keep it above 1.10 (probably the US).... The Germans are the huge winners of a Euro at Parity, as the demand for their goods will sky rocket.... the crash in crude makes this all possible.
The winner is the country with the lowest balance sheet to the most debased currency. Right now Canada is winning, the EU, second, US 3rd, Japan 4, and China Totally fucked.
Don't kill yourself juggling the #'s, this chit show is about to end, prep bitches!
I repeat:
Every EU country should have now a referendum where citizens can vote do they approve ANY further aid / help / loan to Greece. That would be a democratic choice. Because I am sure - NO-ONE wants to give away their tax money to these people in Greece.
see if this sounds better: they've already given their tax money to bail out the eurozone banking system - greek bailout was a misnomer
Taxpayers money has already been used by the IMF and EFSF.
That horse has already bolted.
The contagion is more political than financial. How many other countries are the people going to decide they are tired of debt serfdom. Go Icelandic... Dump the fuckers and jafil the banksters.
The contagion will be felt everywhare
Clowns.
Fuck the EuroCrats!!
Club Med rebellion time.
The world of finance continues down the rabbit hole, seperating itself from the real world in an exponentially increasing manner. Tick tock motherfuckers...
FUCK YOU Draghi!!
Why doesn't Germany just default too? Oh that's right, there would be too much animosity between Merkel and her doms at the next eyes wide shut party.
By doing nothing, the EU is forcing Greece's hand. They will be forced to nationalize the banks and imprison uncooperative bankers.
One must assume that the EU knows this and knowing that, one must then assume that is exactly what the EU wants.
The EU is sacrificing their own Greek bankers (because the bankers have shown no alliance to the country in which they reside) for some other goal.
Time for the Bagholders of all the Greece Toxic Shit alphabet soup mix cooked up by Goldmandamn Sachs to take their losses.
Isn't this where Goddamn Sacks touts this as the best deal ever? Buy! Buy! Buy!
just acquire gold ..... ECB cannot print the Phyzz...
www.teamramgold.com
Thomas Piketty agrees with Greece No, write-off, swaps
“Germany is the country that has never repaid its debts. It has no standing to lecture other nations.”
https://medium.com/@gavinschalliol/thomas-piketty-germany-has-never-repa...
Why is the answer to every problem the same - more buying of debt by Central Banks?
Draghi is a TOOL
This could have been a shorter article if the tools were just described as "CTRL+P"
At least POMO tried to be a bit subtle.
Seisachtheia (google it) any one?
http://www.atlanticperspective.com/home/-varoufakis-quits-using-a-seinfeld-tactic
I just got out of the pool! It was cold!
This should send a strong message to the bansters; and I hope that the international criminal court at the Hague will be investigating how they have robbed the Greeks and other countries blind, especially the Wall Streeters!!!!
These unelected Eurocrats think it is all technical...tools...just look at the charts!
They are fucking around with "trust": takes a generation to built, but you lose it in a fortnight.
In 2010, five years ago, the troika (IMF) already knew that greece couldn't pay back its debts.
So five years wasted and a lot of suicides.
EUSSR.
"May you live in interesting times."
Fuck, it's happening
We have been todl by Zh, that if there is a Grexit- markets will collapse....mmm..wishfull thinking?
Lets see the "collapse"
Us markets- flat
Germany Dax = - 1.26%
A collapse doesn't happen overnight.
Like bankruptcy, it happens over a long period of time, then all at once.
Sounds like it will be many many years before we need to be concerned.
The USA has run out of places where to start trouble. Europe is the new playground. Divide ut regnes.
Carrot and stick theory. The butterfly gets whacked.
Do the ECB's "tools" include nail guns?
Wanted: Crooked Accountants. That will fix things.
As a retail investor this sounds like a sign, a clue, a signal to BTFD. That was funny last night to see all the markets go down except Shanghai. The markets will do whatever the ones that control the infinite fiat want them to do. And in all cases its banksters. They won't stop until they are locked up.
They should include Bitcoin. Last Price $276.61
Tools to stem contagion
Notice: The tools don't include telling governments the jig is up. You can't keep getting bigger and survive. People love your handouts but nobody's willing to pay for them. Back off ... way way off.
S&P green.
ELA will be pulled - guessing before 24 July ECB payment defaults. Greece twists in the wind after that.
But never fear - instead of looking at 80B+ Euros per month being thrown down that black hole which is Greek Banks, QE will be stepped up considerably. Gotta save our buddies.
A temporary measure, but consider how ALL temporary CB measures taken everywhere since 2008 have somehow become permanent.
TINA to the New Drachma.
Draghi just borrowed the Fed printing press. The previous EU one was not big enough!
Greeks need a debt writedown to some level that they can pay for so long as they keep their current accounts balanced - CORRECTION - HONESTLY keep their current accounts balanced.
BUT
Doing that makes clear to everyone in the Euro that they'll be bailed out...and everyone has been living beyond their means for decades, and relying on the printing press to bail them out by robbing savers and producers.
It is a government-banking-currency axis that exists for the benefit of the mutually-reinforced-desire-to-steal.
We don't change the unit of measure in any other calculation, when we come up short.
Yet we've built an entire interlocking banking, government, and social system based on exactly that... When coming up short, redifine the unit of measure.
time to go long euro stocks? i mean with so much QE it can't go lower...
The author assigns to the referendum far more importance than it deserves. The average Greek voter had less than half the information he needed to cast his vote intelligently, not to mention the consequences. To put forward such a question in a quickly-called referendum is a clear case of political demagogy and deception. In a horrendous lie, Tsipras and Varoufakis stated that a NO vote would strengthen their bargaining pósition. On the contrary, it demonstrated to the world that Greece is not a creditworthy nation, and can expect little or no accomodation in the future. What the question boiled down to was: are you willing to accept more austerity? The answer was NO, while the consequences of their unwillingness to accept responsibility were already evident in bank closings and ATM lines.