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It Begins: ECB Hikes Greek ELA Haircuts; Full "Depositor Bail-In" Sensitivity Analysis
Earlier today we reported that as Bloomberg correctly leaked, the ECB would keep its ELA frozen for Greek banks at its ?89 billion ceiling level last increased two weeks ago. However we did not know what the ECB would do with Greek ELA haircuts, assuming that the ECB would not dare risk contagion and the collapse of the Greek banking system by triggering a waterfall solvency rush in Greek banks if and when it boosts ELA haircuts. Turns out we were wrong, and as the ECB just announced "the Governing Council decided today to adjust the haircuts on collateral accepted by the Bank of Greece for ELA."
Full Press Release:
ELA to Greek banks maintained
- Emergency liquidity assistance maintained at 26 June 2015 level
- Haircuts on collateral for ELA adjusted
- Governing Council closely monitoring situation in financial markets
The Governing Council of the European Central Bank decided today to maintain the provision of emergency liquidity assistance (ELA) to Greek banks at the level decided on 26 June 2015 after discussing a proposal from the Bank of Greece.
ELA can only be provided against sufficient collateral.
The financial situation of the Hellenic Republic has an impact on Greek banks since the collateral they use in ELA relies to a significant extent on government-linked assets.
In this context, the Governing Council decided today to adjust the haircuts on collateral accepted by the Bank of Greece for ELA.
The Governing Council is closely monitoring the situation in financial markets and the potential implications for the monetary policy stance and for the balance of risks to price stability in the euro area. The Governing Council is determined to use all the instruments available within its mandate.
What does this mean? Since it is almost certain that the haircut is being increased (as decreasing the ELA haircut makes no sense since Greek banks still have about €20 billion in ELA collateral buffer and instead the ECB would have simply raised the total ELA amount), it means that the ECB just took its first practove step toward launching a Greek bank bail in. [ZH: it has since been confirmed that haircuts are being raised].
And for the convenience of our readers, previously we prepared precisely the sensitivity analysis showing what ELA haircut results in what depositor bail-in.
Here is the summary sensitivity analysis indicating what a specific ELA haircut translates to in terms of deposit haircut. Basically what the ECB just did is to increase the haircut from the existing level of about 50% which was unusable anyway due to the freezing of total amount of ELA at €89 billion, to 60% at which point the collateral buffer - unusable as it may be - was entirely eliminated from €24 billion to virtually nothing.
Another way of showing this dynamic is presenting the ELA haircut on the X-axis and the corresponding deposit haircut on the Y-axis once the critical "haircut" threshold of 60% in ELA haircuts is crossed.
Further confirmation that this was a haircut increase comes from Reuters reporting that the ECB will hike the haircut just enough to reduce the collateral on Greek banks to slighly above the current level of use which is about €90 billion. In other words, the ECB increased its haircut from roughly 50% to just about 60% above which level depositor bail ins begin.
Needless to say, this decision makes it quite clear that it was not Greece, but the ECB pushing all along for "burning the Greek bridges" - just as we warned in "Goldman's "Conspiracy Theory" Stunner: A Greek Default Is Precisely What The ECB Wants" - and as a result any chance of a compromise resolution with Greece may have just been, well, burned
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why can't they just call it stealing?
Who in their right mind still has money in a Greek bank? Having your bank/investments at risk due to Greek bonds is one thing, but money in a Greek bank? That's like the roadrunner laying its eggs in the coyote's cave.
Many used to look at those who were adults during the great depression as kooks or old and senile, but it looks like the latter generations will have to relearn the lesson they knew so well. Banks cannot be trusted. The one thing that generation used to protect themselves from the banking system was cash, and surprise surprise, they want to ban the physical cash now.
Dear Mr. Tsakalotos,
Hello and welcome to fight club. We knew your predecessor well. Now, please do your patriotic duty, and burn this fucking thing to the ground.
Thanks!
- Haus
I'll miss Yanis it was nice to have a human politician rather than the usual preprogrammed robot.
IF, that is a big IF, this is true then Greece is on the fast track to civil war. Ukraine anybody?
http://www.infowars.com/us-preparing-coup-to-prevent-greece-from-falling...
It fuckin' figures...I wouldn't be surprised if the District of Criminals jumped in there and caused another shit storm in a country they have no fucking business messing with. Fucking sociopaths...
Gee, I thought by now people would realize that governments have a license to steal...
http://galeinnes.blogspot.com/2015/07/a-license-to-steal.html
I believe that we should eat the rich. I have no use for idolators. Why can't America be an evangelical theocracy.
They break your country then steal your bank account. Who was stupid enough to vote for this crap???
"All your deposits are belong to us."
Answer: Because it is an act of war, not of mere theft. In war, it is called Appropriation or Confiscation. In this case, it is the central banks ex Greece acting on behalf of unknown "overlords", waging financial war against Greece, for Greece's failure to pay off the bad debts of Germany.
It can get worse. Message to all Greeks: Slaves must do as they are told or suffer the consequences.
It's all so Supercalifragilisticexpialidocious. (that is highlighted and funny font because of copy/paste 'cause I can't spell it.)
it's not stealing when it was there's to begin with
can't own something you borrowed and never paid for lol
They nothing is owed on it...
problem solved
not
WE ARE FREE THEN!
PRINT MOAR GREECE! PRINT MOARRRRRRR!!!!
(brought to you by the Information Liberation Movement...
"THIS IS SPARTA!" comes to mind, in response to that.
But of course the US government only wants to help
http://cdn.bitoffun.com/images/here-to-help.jpg
HOW DARE. YOU CALL THAT WORTHLESS PIECE OF PAPER IN YOUR POCKET YOURS!
IT IS EVERYONE'S! IT YEARNS TO BE FREE!!!
Change the innocuous 'haircut' to 'scalping'. A more accurate word by far.
Rape and pillage is more like it.
… if Greece DOES have the paper and machinery to print additional Euros (which the ECB would declare invalid), do you suppose they’re smart enough to print Euros DUPLICATING existing ones with valid serial numbers?
Print GOLD colored inter-bank bonds of very large denominations (50Bn to 500Bn), with the correct misspellings and errors.
No need to actually cash them; just show them around at the banks and international check points. On the other hand, maybe the Vatican would cash them!
Yes, it's been done before.
I believe that Nobel Prize winner Paul Krugman suggested the U.S. Treasury mint a $1trillion platinum coin to get around the annual debt ceiling debates.
Greece could mint a few and put them on deposit to eliminate all debt and even run a surplus.
The U.S. could mint 16 or 17 of them and eliminate the national debt. It is so easy?
My suggestion is to print enough money and pass it out so no one in the world ever has to work again. That is real humanity, equality and Nobel quality thinking.
Why do that when you can just print euro's?
"Make everyone else in Europe pay!"
"If you want real money you can COME to Greece Europe!"
k you wallet! If you have EURO bills with a Y (for GreeK issued) before the serial number, your in danger!
Why did the ECB/IMF let Greece go over the top? Was Greece the cheapest and most removed (geography/borders) to use as an example?
Haircuts make my head hurt.
The future of banking...
https://www.youtube.com/watch?v=szLCkEBB6xs
Next to Cyprus, yes.
Captain , what do you think will be the order of unwind and time-line ?
I am looking at Portugal 24 months , Italy 24 months , Spain 36 months , Ireland 36 months , France 4 (5) years.
What would be your take on that ?
And if you follow the rules of fight club...if its your first night; you must fight.
I always figured the roadrunner was a he. But these days, who the hell knows or can tell.
Agreed, so I'm guessing pensions HAVE TO BE direct deposited, therefore requiring a bank account. Plus almost all businesses are forced to have one.
Funny to listen to the folks who say "can't happen in the USA" even though it already has.
"When businesses start paying only in cash...
ON THE OTHER HAND IF THE PAPER'S NOT AS GOOD AS BEFORE, AS EVIDENCED BY THE HAIRCUT
HOW MUCH SHOULD THE SAME PAPER BE WRITTEN DOWN ON ECB AND BANK BOOKS
METHINKS Y'ALL JUST TRAMPLED ON YER OWN DICKS IN CLEATS, FELLAHS
THIS IS JUST THE BEGINNING OF THE FIRST ACT
Gotta look on the bright side
They will be stymied from buttfucking children with their mutilated members...
Good news.
Unfortunately when the pension retirement age is 55 and you live on a doled out social security net, going to the bank every week to get the next check is inevitable.
Duh! Forced direct deposit for your pension!
pensioners and businesses
Because the only ones being stolen from are savers. Translated into banker-speak "Saver" means "Sucker".
i don't want to give lessons to anyone (since was a "sucker" myself for a long time) but isn't the purpose of gold and silver precisely to enable to save money outside of the banking system ?
It perfectly possible, thus, to save and be totally independent from the bankers domination. Gold ans silver can be bought everywhere, online, with relatiev ease.
That analysis ignores the banks own the markets by which your gold is valued, and they take an active role is manipulating prices. Therefore, it's only worth what they say it's worth until the system collapses. In other words, you are correct, you can save outside the banking system, but you can't invest, and you can't even withdraw your savings without going through the banks' market (i.e., slavery).
That analysis ignores the banks own the markets by which your gold is valued, and they take an active role is manipulating prices. Therefore, it's only worth what they say it's worth until the system collapses. In other words, you are correct, you can save outside the banking system, but you can't invest, and you can't even withdraw your savings without going through the banks' market (i.e., slavery).
Everything is always manipulated all of the time. Even possessing a truly unfettered and 'free' market as a libertarian or constitutionalists might define them, human greed will always interfere when money is involved. Plus Silver and Gold Dollars take longer to burn than paper ones,, just saying. Additionally specie doesn't harbor bacteria and drugs like all debt money does, quite the opposite. Fiat money is dirty. http://tinyurl.com/pl6ddor
Physical gold and silver can be bought, and you pay a premium to do so. And it may be worth less or more when you want to convert it to cash as only gold dealers will take gold (for a fee, again). The grocery store wants cash and most everybody else wants cash. So you lose when you buy and lose when you convert. And in the meantime it earns nothing but costs to store, assuming you have enough to matter.
The gold brokers always scream that you must buy gold and that it's going to the Moon. If so, why are they selling? Because they make more off the spread and don't have any risk. They put the risk on you. Gold brokers take your worthless dollars and give you gold, think about it. Doesn't that seem strange?
I'm sure someone will be along to explain how I'm wrong, and I'll listen since I like building wealth.
Gold is insurance against the banksters crashing or at the very least fucking up the system. The question is how much "insurance" (whatever your insurance is ;)) you will need to survive after the crash.
Did the ECB just shoot themseleves in the head?
Those fuckers really want Greece to explode in riots now.
"What we have here is a failure to communicate Some men you just can't reach. He wants it, well he gits it.""
"I wish you'd stop being so good to me cap'n"
Headbanger - In my opinion the old bankster/fascist playbook is being employed here.
-Pump up asset values with CTRL-P and ZIRP/NIRP while creating the illusion of a recovery
-Hammer precious metals through manipulation via paper contracts and rehypothication while using your pet media to talk down barbarous relics to the muppets and keep them buying stawks.
-Create unsustainable debt and use the debt number to scare the sheeple into voting to raise taxes (then skim as much as you can). This is even easier when you point to the income inequality that you've been creating with CTRL-P, using it to manipulate voters in a divide and conquer strategy.
-Rinse and repeat until the people can no longer be fooled by a fake stock-market recovery, then tap the insiders on the shoulder so they can be the first to sell their assets to the remaining muppets who are still in denial AND short the market before the cord is pulled.
-Pull the cord. Asset values plummet; the economy collapses; rioting and civil unrest ensue; governments crack down and take away liberty (for the children); the elites use all of their dry powder to buy everything back at pennies on the dollar; the sheeple point fingers at each other and create pain, anguish, misery, and death while the the elites watch from their luxury bunkers.
I don't think the ECB is shooting themselves in the head, at all. I believe it's all going according to plan.
There is no plan
Just greed and the belief of the elites they can control the disaster they set in motion with their financial schemes years ago.
The ECB has set the stage for a major revolt against them by numerous EU members fed up with their financial dictatorship
This blunder today could well prove to be the spark that ignites the fuse to the powder-keg.
We'll agree to disagree. I believe there is a plan.
It reminds me of the Bourne Supremacy when Nicky Parsons, while responding to a claim that Jason Bourne had made a mistake, says, "It's not a mistake. They don't make mistakes. They don't do random. There's always an objective. Always a target."
Meat Hammer - Your analysis above and this comment that it is intentional is bang on. Quite simply, it is a business model.
Politicians love it too, no restrictions on putting there dough into stocks and knowing exactly when booms and busts will happen.
They can create or rescind laws and know exactly where the roulette ball is going to land. Banking should become a public utility but outside of WW3 shocking the hell out of the political class I doubt it is going to happen in my lifetime.
Best to make hay while the sun shines a little between storm clouds in this hurricane cycle and buy hard assets like PM's and real-estate. Though the latter doesn't have as many deals now at least here in my area.
Land is cheap in East Texas. A lot of soil needs remediation for row cropping, but the low price allows that. Pine trees grow like the tall weeds they are. You can get ag/timber exemptions on your taxes if you keep the land in production.
Texas is not exactly the bastion of freedom everyone makes it out to be. Try starting a lemonade stand in front of your house..
meathammer , problem with any plan is unintended consequences.
I don't think there is a plan. Like war , it's all made up bullshit as you go along after the first bullet is fired despite the best possible advance planning. Property is not an asset in a declining market , it's a fucking liability , even gold if you have to pay more to protect it than it;s worth. The elites know that a functioning society has much more extractable value than a shitstorm debt based fuckup system in collapse.
One can only hope.
Yes, exactly. It's just like a sub-prime borrower buying a house they couldn't afford while lying on the loan(liar loans). The bank expects to get it back after collecting a few years of astronomical interest. The Greeks joined on false pretenses, everyone knew it. Many said it wouldn't last 10 years and wouldn't have without depending on the kindness of strangers, their new overlords.
http://www.youtube.com/watch?v=DSTd1LuiVUs
.
For a bank property is a liability. Banks don't want property on their books , they want employed people paying off interest bearing mortgages. Some sub-prime is now selling for a buck a house in auction , you think the banks really want that ?
Exactly: ”God save the Queen! It’s a fascist regime!” A system made by and for the owning class (and no, you’re not in that class if you bought a house, a car or even a business on credit). The real owners – the people owning all the productive assets of importance – comprise of only a fraction of a 1%. In the upper echelon of society, you have rich people, but they too are slaves/servants. And they too will be sacrificed when time comes. It’s the 0,01% that controls the shit show (and they’re not counted in the list of the world richest people provided by ‘Forbes’ – those are just small fish).
On ZH many – I think mostly US-based ‘libertarians’ – see this as socialism/communism. Maybe socialism for the rich/ownership class(?) – but that’s an oxymoron as I see it.
I did not have sexual relations with that woman.......
The depends on what the definition of is, is.
Fuck the ECB along with the Draghi Dragnet on top, and Merkel in the middle.
Aunty Semite!!!!
Have the Greeks run out of fiat again?
Hopefully they are smart enough to start printing Drachma's.
I would say trade with South America, Asia, Africa, and maybe East Europe. They are not as controlled by the Western bankers as Europe, North American, and Australia. Greece needs to find something to trade with countries outside the West. If they can build their economy back up without the Western bankers there is a chance the Drachma won't be worth diddly squat.
1) print drachmas
2) outlaw commerce in anything but drachmas
3) make it easy for tourists to exchange, at a fair rate
4) build foriegn reserves
5) trade with outside world
6) collect taxes in drachmas
Edit:
1) Don't 'print Drachmas' - make 'em! From silver and/or gold - or just back the Drachmas 1:1
+
7) Stop fractional reserve banking
8) Make counterfeiting illegal again = take the control of the money supply/the power to create fiat away from the private banks
When the game is so stacked against you the only way to win is NOT TO PLAY
Could be from Varoufakis, himself! (Master of game theory).
So, if I understand this Greek thing correctly, it's okay to steal from savers through a "haircut", but bloated government pensions are sacred and cannot be given a "haircut"?
They will have their own haircut soon. From a devalued Greek Domestic EURO (GDE) or Drachma. Name is your choice.
The pensions probably would have been affordable if the Greek government had collected taxes.
By the way, in what way are pensions not a form of savings?
Pensions should be savings. But today all ‘money’ is ‘debt-based’. There’s no savings in the system – only hoards of fiat/IOU’s. The only way to truly save anything in the current ‘economic’ paradigm is via PM’s. Some pensioners – actually quite a few in Greece – know this and have silver/gold for a rainy day.
In the old days in Denmark we had something called ‘inherited silver’ (translated from ‘arvesølv’). It basically means: what you inherit with real value.
Nationalize the banks.
Cut off the internet to the banks
Arrest the bankers
Ban the Greek Central Bank
Mint silver drachmas
Bank any and all future paper fiat with gold and silver
Fuck the E.U.
I keep hearing about "Silver Drachma's." I skimmed the "Silver Drachma Plan," but never saw a part about there actually being a plan to institute silver drachma's.
Where would Greece get the silver from anyway?
Greece have their own silver mines. Greece are known for their silver – as a tourist there I’ve always bought silver and gold to my stack.
because nobody tips their thieves
"Just a little off the sides please."
https://www.youtube.com/watch?v=84QzVPA3rrY
Just the tip...
Drachma? anyone? Can you hear me in the back?
My god, it's full of Sweeny Todds.
Well, Monthy Python saw what was coming and also the outcome of the match :)
https://www.youtube.com/watch?v=ur5fGSBsfq8
Thanks!
Forgot about that one.
Almost as funny as "Ministry of Silly Walks"
Not the best goal Socrates has scored though...
https://www.youtube.com/watch?v=Vkq4fVKzibY
That penalty against poland in 82 was something else as well
Still laughing at substitute Karl Marx lmao
This is fucking brilliant
"Stick it to the IMF, now pay me."
Mario Draghi and the Goldmanite whore.
None of this solves anything.
The ECB is NOT the Fed you fucking dopes...
Full retard requires it. I find it amazing that they have decided to turn an entire country into a martyr, this will give every radical, both left and right, a huge rallying point and supplies all the ammo they need to start collapsing EU governments. "Lord of the Flies" as a howto manual.....
If this doesn't cause a full blown bank run in the next country to be at the "mercy" of the ECB I don't know what will.
This should be a boom time for asset prices as people dump their cash and head for higher ground.
Agree with the first part...but what cash will they have to dump?
Folks will dump the DEBT causing the market to crash...
No wonder Varoufakis bailed.
Will he end up with a Squid subsidiary?
its official:
1. europe is completely fucked: this is the ECB showing their hand (nothing). greece bluffed (and won, possibly with less of a hand than the ECB, which folded after knowing greece had nothing)
2. nothing matters, until it matters (which is not yet & hopefully not in my lifetime). this shit will be allowed to go on until it simply blows the fuck up.
3. all this shit today makes me wonder how long & what happens when us here in the U.S. actually hit the wall. seems like greece is getting more rope (drugs) from their dealer. im guessing people will consider UST "safe" until they realize $19 trillion & growing is completely unsustainable.
question: anyone else hear the obama administration froze the U.S. national debt clock? i heard that yesterday and just LO fucking L'd. "most transparent administration in history"
buying bi-annual trips to vegas & megamillions/powerball with my 401K the rest of the way
"anyone else hear the obama administration froze the U.S. national debt clock?"
Yep, it seems they have.
I had long maintained that the Fed would NEVER raise rates, because the US would never be able to service it debt. Boy it looks like I was wrong, all you have to do is magically cap the debt and presto, raise rates to whatever you want. Janet is the third Jew Fed head in a row they've had, perhaps this debt forgiveness and the shemittah is the way they're going to play around it.
http://cnsnews.com/news/article/terence-p-jeffrey/90-days-treasury-says-...
Maybe the battery just went dead. Did they think to check?
Laugh or cry but this clock is still running: http://www.usdebtclock.org/
And this one, on the bottom;
http://www.usdebtclock.org/gold-demand-by-country.html
Anyone take note of these numbers?
Median income 2000- 28,490
Median income now- 28,826 Median income rose 336 dollars in 15 fuukn years.
Quitchur worrying. We're exceptional.
Got phyzz?
Hopefully Greeks are buying rope for bankster tow hitch drag races.
Q#1. Why is this a surprise?
Q#2. Who didn't see this coming?
Q#3 Seriously?
Have the Greeks run out of fiat?
double entry.
Can't they just print more? I'ts always worked before!?!
Have the Greeks run out of fiat?
Uh didn't they vote no so that they would not have to pay the banksters? They'll probably just have to rustle them up and hang them then.
Ah, referendums and votes are more like guidelines, ECB doesn't care about that. This is a stern warning to any uppities that stray off from the flock...you'll get the lash too.
"I gave you Greeks the chance of aiding me willingly, but you have elected the way of pain."
The ECB has placed the head of Greece on a pole in front of its headquarters so S,I,P will know the consequences. "Get your economies and people in order, or not"
Draghi, King of Europe, with Hollande and Merkel pretending to be deciders.
Gold drachma in 5,4,3...
Hilarious...
....How people here are cheering on Syriza, fuck the bankers, no to austerity, etc, etc.
...and then expecting that spendthrift socialist government to link the drachma to gold?!
WTF? LOL
If/when they go back to the drachma they're going to print the fucking shit out of it.
That's the whole POINT of the exercise.
That's what the left has been crying about since 2008 re the "shackles of the euro." They don't like how the common currency prevents them from printing unlimited amounts of money to finance their welfare-states.
you nailed it. as exporters G sucks. as importers they will be overcharged for everything - the risk of everlasting devaluation. all until they get a sugar daddy - who will it be ? how long will it take? until the creditors accept less!!
May not be long.
http://redefininggod.com/2015/07/globalist-agenda-watch-2015-update-56-p...
I see, The Every Player is a Puppet meme. The author shares a lot of quotes from the likes of LeatherFace Legard calling for a multi-polar world, but ignores IMF decisions to deny emerging countries a greater role as requested. Maybe those holding the western puppet strings are just trying to front run the collapsing empire.
Does Greece hold gold? In their own possession?
Given recent price moves, Gold is not in Greeks mind. And if, I hope they hold it at home because banks will deny access to their vaults starting at banks reopening day.
all of this shit show could have been resolved eaily and swiftly by the simple fact of the greeck people buying massively precious metals months ago.
Again, i'm don't throw them the first rock but it's quite surreal to see a whole population swimming in a fucking FIAT induced endless drama when they had the simple solution available to them for years : precious metals
oh sweet jesus has it really come to this?
If I ever needed convincing that PM's are doomed, this comment provided it.
These are the people buying PMs.
Good. Now sell all of the Precious Metals that you have. The poor peasants in China and India, as well as the poor elsewhere in the World, will be ready to buy all of yours from you.
Enjoy your paper paradise...until it burns to the ground.
Have you ever wondered what Thermite can do to a Natural Gas Line or Meter on the side of a Bank Building?
Thank you US Government. You have taught me well that Thermite removes skyscrapers.
+1...but does thermite melt concrete and guns together like the monument in the NYPD museum?
http://911smokinggun.blogspot.com/2010/02/blog-post.html
Me thinks someone get dirty with it....look at the temps
RIPS
ECB is suppose to provide liquidity to EU banks. Draghi is a traitor. Hang the bitch.
And if you are bald they'll just cut your head off.
But but the greeks just voted 'no' to a deal that wasn't even on the table, so that means the Germans' backs are against the wall and they will now have to forgive all the greeks' debt and give them more money...right?
I mean, I'm being logical aren't I?
people vote no to a meaningless question and that gives them more negotiating power. It's so obvious. Why doesn't the ECB see it? Why?
Grexit is their best case scenario. Fuck the Germanic Franco trading bloc.
ank runs are as old as banks. People never learn. Deposits = unsecured loans to the bank bearing a token interest rate, nothing more, period. Anyone with a penny left in a Greek bank is simply beyond educating/saving/helping.
Pensioners receiving direct deposits are a possible exception, but not really - pensions are similar to bank deposits in that, in the end, they can vanish in an instant and there is for all intents and purposes no recourse. A few decades of a system working as advertised (to the plebs) says nothing about the likely behavior of the system under any other conditions, but is far more than adequate for fooling people into trusting that system with, effectively, their very lives.
Your country is about to run out of money, has been functionally insolvent for years, relies on monthly bridge loans, can't print/create its own currency, has no plan b, and has been in an economic crisis for almost a decade - it is definitely not insane to keep anything more than pocket change in a savings account.
You'd think, with how hilariously easy it is to steal depositor funds, they'd do it much more often.
"Anyone with a penny left in a Greek bank is simply beyond educating/saving/helping."
I've read a lot of comments similar to this over the past few weeks. But is it not the case that if everybody in Greece had attempted to pull their cash out of the banks 1, 2 or 3 months ago, what is happening today would have happened much earlier, because there simply is not enough paper currency in the banks to cover their deposits/withdrawals.
Wait! Fractional reserve banking does not work!?
(!!) Shock Horror (!!)
eventually the paper promises no longer buy shit or are not accepted outright. Fuck you and your bullshit promises, if you want some of my food/oil/shelter etc. then you need to give me something fucking real in exchange. The world has been here before, this time it's global Wiemar bitchez...
Has a USN task force arrived in the area yet to ensure the Russians don't interfere with the EU beatings --- at least until Greek morale improves...?
Yeah, if they see "NATO coming to the rescue" and employees of Goldman Sachs, they can be assured they are about to be re-fucked.
Your move greece.
Why are we all being so polite... are we suffering from "political correctness"????
Replace the many uses of the term "hair-cut" (which implies that it grows back.. is renewable, which in this case it is NOT).. with the simple word THEFT~!
Now everybody can understand..... stealing the money that the trusting, albeit STUPID working people and companies GAVE to the banks to protect...
Bah~!!!
Try to pay attention...
The "ELA haircut" means higher collateral requirements for the Greek banks to receive ECB funding.
That's not "theft" you twat. That's a lender raising collateral requirements on a borrower already in default, with no prospects for recovery, who's telling him to go fuck himself (but also to hand over more money please..).
Get a grip. Your bankster-hatred is making you severely retarded.
"collateral" LMFAO!!!! It has been a "mark to fantasy" world for quite a while asshat, thanks for the laugh. The Fed just printed up trillions with no collataral requirements you stupid fuck. ZIRP is the same fucking thing. What a maroon.
Yes, it's been "mark to fantasy" for a long time when it comes to collateral and for the benefit of the Greeks. The ECB has been accepting dogshit as colateral so that Greek banks can get financing. The ELA "haircuts" = no longer accepting dogshit as collateral (or at least now the dogshit will have to polisged and gift-wrappd; I doubt the collateral requirements are going to be al that high). Yet the retarded "teh banksterz!" brigade somehow views this as theft on the part of the ECB...idiots.
Greece is fucked because its electorate (which keeps voting in Marxist shit like Syriza) thinks like you people.
Not very good at reading comprehension are you? If it were up to me I would have let the Greeks fix Greece a long time ago.
Right. They've always been part of the FSA. They made a pact with the devil way back in the 90's.
http://www.youtube.com/watch?v=lFUVNAF8DWc
What the ECB has done is not only pull the plug on Greece but stabbed it multiple times to kill them faster. May as well kick them out of the Euro and admit they can't pay you back.
Suddenly I don't feel bad for the German war reparations after World War 1 which effectlively choked off and killed their economy "forcing" the kind hearted Germans to try to take over Europe.
Not sure if trolling, or role-playing, or....
I think this means that Draghi must be dragged out of his squid-look-alike plush office in Frankfurt and hung from the nearest lamp post.
so if Illinois or California or Purteo Rico goes bankrupt will they be able to bail in their local banks?
A "bail-in" is what should happen when a bank fails.
The OldSpeak word for "bail-in" was "bankruptcy."
;-)
As in: the creditors and equity-holder take a loss rather than those losses being pushed onto the general public via a bailout.
Yes, let the bad banks and bad bankers/financiers fucking die already!!!
You are not answering his question.
Will California and Puerto Rico effectively be able to commit outright theft of their customer's funds if and when they go bankrupt?
You didn't read/comprehend my post.
It isn't "theft" for creditors (that would include depositors, who are unsecured creditors) of a bank to take a loss when the bank fails.
Who else should take the loss?
Taxpayers who never had anything to do with the bank?
Everyone who holds the currency (who will lose purchasing power if the state prints money to cover the deposits), who likewise had nothing to do with the bank?
Or have you fucks not yet learned that there is no free lunch?