Greek Tragedy: Pension Pandemonium Sparks Bank Crash, Stocks At 26 Year Lows

Tyler Durden's picture

And you thought Greece was "fixed"...


The last 3 days have seen Greek bank stocks cut in half...


Which has slammed Greek stocks to their lowest since December 1989...breaking below Draghi's "Whatever it takes" lows...


And Greek bond yields are back above 10% - the highest since last year's crisis...


Greece is no longer "fixed" as it appears the troubled nation is once again facing a funding crisis (looming in June) unable to meet "Europe"'s demands on its pension reform and refugee aceptance. As MNI reports,

Greece's negotiations with international creditors could take months if Athens does not cooperate fully on its fiscal consolidation plan and officials are not expected to return to Athens before they receive concrete and acceptable proposals, Eurozone officials told MNI Monday.


Furthermore, the officials warn that any attempt by the Greek government to politicise the negotiations in order to get relaxation will not be tolerated by the majority of the currency area member states.


One high-ranking official said that "the talks carried out last week were just exploratory" and that the institutions "did not make specific demands" as they lack hard data, despite leaks from the Greek government on potential taxation increases and pension cuts.


"There is still a big gap between what we ask and what the Greek government has submitted so far. We have not defined yet the fiscal gap for this year, which is a crucial component for the evaluation," the source said.


Another source said that despite the goodwill expressed by Greece's European creditors - the European Commission, the European Central Bank and the European Stability Mechanism - to discuss counter-measures to offset certain unpopular ones such as cutting further primary pensions and the minimum wage, "Greece seems unable to deliver such measures."


"There is a lot work to be done. We agreed to disagree. Judging from (last week's) talks, the negotiations could drag for months. Anyway, I don't see any real funding needs for Greece until June," the official claimed.


The comments come amid massive reaction in Greece by farmers protesting potential tax increases and social unrest for the formation of immigration camps in certain islands and the north of Greece.

In other words - prepare for another ATM-halting, crisis-confronting Spring and Summer in Europe as Schaeuble goes to war with Tspiras once again... obver pension reforms and refugee concessions.


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pickupthatcan's picture

At least they have Poseidon to help them locate all those sunken boats full of PMs.

Poundsand's picture

What's the big deal?  This is a spring ritual now, will run it's course of 'fixed' vs. doomsday.  More sheep will get sheared, more ques at ATM's will form, more lies to the people.  And of course, they will continue to take it.  I think Kevin Bacon sums this up perfectly.

E.F. Mutton's picture

And one of the larger elephants in the room that rarely gets mentioned outside of ZH: States like CA and cities like NYC and Chicago are running out of tricks to pay their unfunded pension liabilities.  I suspect a Biblical Level Shitstorm when that bill finally comes due.

KnuckleDragger-X's picture

They assume that DC will bail their ass out, but that is going to be tough if DC is looking for somebody to bail THEIR ass out. Maybe we can sell Chicao to the Chinese......

cro_maat's picture

DC will turn to its collateralized debt slaves: the American taxpayer. Congress is even now proposing a taxpayer bailout of Puerto Rico which is a wholly owned subsidiary of the United States (District of Columbia). Must be nice to run a corporation that can ask its employees to bail out its ponzi schemes.

Winston Churchill's picture

You think they are going to ask ?

Pretty please with a barrel against your temple.

franzpick's picture

Can't remember the math or details, but didn't the feds bail out CA's unemployment fund with $20 bil or so in 2009, and I think it was media suppressed, and probably never paid back?

KnuckleDragger-X's picture

I think it was a "loan"......

GotGalt's picture

franzpick - you have a good memory, as the Feds did indeed give out interest free loans to several states to keep the spice (unemployment money for 99 weeks) flowing.  I have not heard of any paybacks either in the at all.  Just crickets.  Maybe zerohedge will do a follow up on this. 

TheDanimal's picture

Lol just join the Free Shit Army and hasten the collapse.

Kprime's picture

why not, Zimbabwe bought Detroit in 2012

Lostinfortwalton's picture

Ever drive through New Jersey? Every few hundred feet you drive takes you into another 'township' with it's own high-dollar police and fire department pensions being accrued. Not only that, but when the civil servants there do retire thay bail out for the deep south because NJ is too expensive!

11b40's picture

Yeah, I know.  And they come down to my part of the world to tell us how great things were where they came from, and how we ought to do things here.  There should be some way to make them stay where they draw the pensions.  Maybe the checks should have to be picked up in person.

Only half joking.

Kprime's picture

I think this is a syndicated tv series.  I have watched these reruns so many times I am bored out of my skull.  If I am forced to watch this pointless channel one more time, I may just shoot someone.

buzzsaw99's picture

moar rapefugees on the way to germany. paybacks are bitchez herr bitchez.

overmedicatedundersexed's picture

Damn Tylers: IF YOU DO NOT REPORT ON GREECE, it never happened..reporting bad economic data is soon to be a Hate Crime..

11b40's picture

The Greeks need to have some more conversations with Russia and China.  They have such a fabulous strategic advantage, and Putin especially might like to have a NATO member 'defect'.  A new military based close by that part of Turkey would give that POS Erdogan a little more to htink about as well.

Cult of Criminality's picture


Chuckster's picture

Merkel has her pants full!

NoDecaf's picture

Pfft... Merkel

How do you say cunt in German?

youngman's picture

Dont give them anymore money..and they will have to figure it out on their own...

Seasmoke's picture

And the smartest guy in Greece , has already left the building. So Good Luck with that. 

zipit's picture

Did the Greeks invent bankruptcy (like they invented everything else)?

Yonathan Zwift's picture

Why is it that all Greek Drama features Tragedies precipitated with action that happens OFF STAGE?

starman's picture

I'm sure the EU has plenty dough left after the muslim invasion  to deal with the Greek crises!  

But maybe not! 

RabbitOne's picture

Yes Greece was “fixed”…Merkel cut their balls off…

Goldy Locks's picture

Could the second graph (Greek Stock Market Index) be displaying a potential head and shoulder, starting in 1989 ?

sgorem's picture

i kinda figured they were fixed years ago when they had their BALLS CUT OFF..........just my opinion though...........

Chuckster's picture

Is this the start of Dark Ages 2 ?  Who and what determines when it starts?  Do we have to wait 50 years so academics can look back and then collectively determine when it started? 

Poundsand's picture

It will be Dark Ages 2 when they try to push out the muslim invaders with swords and arrows. That is way down the road yet.  Currently they are still spreading both cheeks and taking it without lubrication.  Eventually they will have enough, but not yet.

dogbert8's picture

But . . . the Greeks got their last bailout; they'll probably get the next one, too.  Groundhog Day.

VWAndy's picture

Wow swipping everyones money wont save the economy?  Whocouldaknowed? Maybe they should swipe everyones paycheck twice a week?

rwe2late's picture

the article needs a sarc tag

"as Schaeuble goes to war with Tspiras once again"

(LOL, really?? Tsipras the betrayer-pawn?)

that's like Hillary going to 'war' with Goldman Sachs!

Lostinfortwalton's picture

Maybe the Clinton Foundation Fund could help?

MadVladtheconquerer's picture
MadVladtheconquerer (not verified) Feb 8, 2016 12:06 PM

Are we still harping on this nonsense?  Cash and shorts will do you up right!

Joebloinvestor's picture

The farce was thinking Greece would be fixed.

It never will be.

Lucky Leprachaun's picture

All those 40 year-old pensioners might have to go back  to work.

eXMachina's picture

Yes "fixed" as in neutered.