Commerzbank CEO Says Greece Should Exit Eurozone

Tyler Durden's picture

As if Merkel did not make it all too clear over the weekend that Germany no longer wishes Greece to be part of the Eurozone, and that the ball is now in Athens' court to accept what is a glaringly unfeasible demand, i.e., to hand over fiscal sovereignty over to "Europe" with Merkel having the cover of saying it did everything in its power to keep Greece in the union, here comes Commerzbank's CEO Mueller to pick up where Merkel left off:


Presumably this means that German banks have sold off all their Greek bond exposure, and believe that the Eurozone would be better off without Greece in it. However, that Commerzbank, or one of the most insolvent banks in Europe, and only in line with Dexia, is confident that it can withstand the contagtion that would follow, only makes us even more skeptical that a Greek default and Eurozone departure will be contained, and in all likelihood will have scary implications for all European banks, not only German ones. Just ask DB's Ackermann...

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
williambanzai7's picture

And Commerzbank should exit the Twilight Zone...

Mr Lennon Hendrix's picture

Snake meet tail...or was I looking for the one about the pot?

slaughterer's picture

Greece has been preparing an exit strategy ever since G-Pap's decision (quickly recalled) to submit the Oct Summit decisions to popular referendum.   This back door exit is Greece's Plan B, and will be invoked at the beginning of March.  

Doña K's picture

Would they let Greece default? TPTB, i.e. Banksters, will loose lots of dinero. And....what about Portugal, Ireland and Spain?

Eireann go Brach's picture

Poor Lindsay Lohan out giving teetotal advice advice again I see!

battle axe's picture

Didn't Commerzbank get their head handed to them in the 08 blowout? So while I agree that old Greece should go, these guys do not have a spectacular record themselves.

aswoboda's picture

Mr. Muellwr is not the ceo of CoBa though

mattu13048's picture

Commerzbank should be careful what they wish for. Last time I checked these guys were still on food stamps.

Zero Govt's picture

Go Greece Go

Do an Iceland.. leave the creditors in the crapper (for ever being so stupid as to back the political class)

Your economy will be over the "financial collapse" that Wank Paulson, Blowjob Ben and others say you can't possibly survive (Iceland did) and in under a year see some green shoots (as apposed lookin down the barrel of a German gun)

It's a 'Yoghurt Default Event' ..have some honey with that

Doña K's picture

Don't forget the olive oil and its multitude of uses by the Greeks.

Matt's picture

Bullish! Tourism industry says going back to Drachma will boost tourism even more. Since leaving the Eurozone is voluntary, no Credit Event. It's all priced in. Rally on!

BLOTTO's picture

The Euro Zone will eventually be left with only the strongest countries...weakest countries will get booted out.

I say about 10 countries in the end.

But NO way does the EU fail.

These countries will form the new Holy Roman Empire.

Zero Govt's picture

Remind me, which are the "strongest countries" in Europe again???

BLOTTO's picture

Zero -

I meant to say, 'The Best of the Worst'

I also think new members will join fully - i.e 'England' - while those weakest ones exit/booted.

The British# is setting up parity nicely with the Euro. Dont you think?

BLOTTO's picture

If you believe a One World Government is the end goal for these Royal Houses of Europe and the Illuminati - than the EU can NOT break apart. That is going backwards for them.

They built this baby up and it took a lot of time and effort. Its CRUCIAL to establishing the one world government...

They want you to think its going to fail...but it wont.



StychoKiller's picture

Sometimes, a pawn or a knight must be sacrificed to win the game...

FreedomGuy's picture

It's like picking the tallest midget.

Mr Lennon Hendrix's picture

Cashin said today that Greece is "done".  He was very explicite about that. 


Must be priced in.

TruthInSunshine's picture

By any sane metric, if anyone claims Greece should leave, then by extension, unless they're seriously mathematically challenged (and/or a total and complete liar), they would have to concede that Italy (amongst others) has to leave.

Italy is the nightmare scenario for the EU. Expect every nuanced dance and gesture of distraction from the now failed Eurozone experiment apologists to trip over their tongues in explaining why Greece should leave (if they concede as much) while claiming that the same isn't true of Spain or Italy.

It's amazing that such an obvious failure of an experiment could be so exposed to the 'the smartest people in the room' for so long, warts and pustules dangling about, full of toxins, and there'd still be people who wish to preserve their credibility defending the sustainability of the unsustainable.

It's time to find out if the ECB can out-Bernank The Bernank, and whether Germany will autorize such warp speed infinity-to-beyond debasement.

vast-dom's picture

correct. and if / when italy goes so too does Portugal et. al. it all becomes a chain reaction to Eurozone KAPUT.

MonsterZero's picture

Greece would have to be KICKED out of the Eurozone, they know very well their people would revolt if they left when they realize they have no future because Greece on its own is simply a failed state. They'll bitch and cry to get the best deal they can but when it's all said and done they have no desire to leave.

Falcon15's picture

First you are asked. Then you are told. Then you are forcibly removed. There is an ettiqutee to kicking someone to the curb.


The entire drama in song:

Greece to Germany: "I got chills, they're multiplin' and I'm loosing control. 'Cause the power your supplyin''s electrifyin'.
Germany to Greece: "You better shape up, cause I need a man, and my heart is set on you. You better shape up, you better understand,
to my heart I must be true."

Greece: "Nothing left, nothing left for me to do"

Matt's picture

I am under the impression there is no mechanism to remove a member from the Euro, only for a country to "voluntarily" leave?

StychoKiller's picture

Even so, how hard does a vise have to squeeze before you voluntarily remove your 'nads?

akak's picture

Greece would have to be KICKED out of the Eurozone, they know very well their people would revolt if they left when they realize they have no future because Greece on its own is simply a failed state.

Funny how they were apparently NOT a failed state before entering the Eurozone.

It is also funny how the end of the Euro and a return to national currencies, which so many eurodefenders wildly shriek is simply "IMPOSSIBLE", was the prevailing reality for many decades, if not many centuries.

francis_sawyer's picture

How long is it going to take for everyone to figure out that this is just a ping-pong game used to ZIG ZAG markets in the short to medium term & stall for time thru 2012???

IOW - As long as this ball is up in the air, the markets will neither CRASH nor go VERTICAL...

It's a fucking IRON CONDOR

vast-dom's picture

balls cant remain airborne forever, irrespective of player skills.

francis_sawyer's picture

True... But 2012 ought to be a piece of cake when you also consider that the "other" things that can be used on a whim are:

- the 2012 elections

- The Straits of Hormuz

- The fed charter (after the 2012 elections)

Hell - even the fucking Olympics...

centerline's picture

Central bank hot potato game.  Can't play it forever though.

francis_sawyer's picture

Can't play it forever though...

Agreed... I still remain of the idea that any kind of break-up in the Eurozone will NOT be allowed to occur until the US Elections cycle is completed...

Not that I think that THAT is a singularly significant factor, but in the CONTEXT of a 'global system' it becomes important... You gotta think that TPTB (whether their grip on things is frail or not), will want any chaos or disruption to occur as orderly as possible...

As LAUGHABLE as that sounds (even to me)... I can't say that it'll be hard to print any amount of money or do ANYTHING, this year, that will fail to buy just "that more" time...

I keep thinking how long it took for the housing collapse to occur... God knows that when it finally came to "the Lehman moment" we were only a half dozen weeks in front of the elections (& bazooka Hank therefore had full range to just shove everything down everyone's throats)...

& this time it ought to be even easier because every CB in the world is all aboard the money printing express...

John Law Lives's picture

If Greece goes, look for others to follow... after the precedent has been established.

walküre's picture

And why not? The whole world should just go "Greece style" and walk away from its obligations to the bankers.

What are they gonna do about it? Print themselves an army to control the uprising?

mjcOH1's picture

Print the money to pay the exxisting army, and the politicians who control it.

Alex Kintner's picture

Sure, just convert your Euros to Greek Krachmas.
Release the Kracken!!

EyeQ's picture

How can the EU engine run without a little greece???

Joebloinvestor's picture

If the EU had booted the deadbeats and been serious, it would be stronger, not the crap shoot it turned out to be.

Dick Darlington's picture

Germany's "bad bank", wind-up vehicle, FMS Wertmanagement has been issuing bonds like there's no tomorrow. New issues and taps popping up almost weekly now...

nyse's picture

This will end with the Eurozone being more like a political union. We are already seeing the power grab take place. These countries will sacrifice sovergnity in order to keep the Euro, IMO.

battle axe's picture

And the first Domino falls, so who is next? Hello Portugal time to be the next head to be put on a spike..

Falcon15's picture

Italy or Spain, more likely Spain at this point.

Pancho Villa's picture

Greece really would be better off outside the EMU. Leaving would be very painful, but staying would be worse.

Scalaris's picture


Is Mueller too busy having his head stuck up his ass to notice the dire state of the rest EZ economies, or does he think that the perpetual LTROs will make everyone gloss over Portugal, Spain, Italy etc.?

Perhaps the same Chinese who are buying up Germany's industrial infrastructure chunk by chunk, would like to hedge by relocating some mass factory pipelines in the forthcoming Greek third world, since the Greek labour cost seems to becoming inversely correlated with the Chinese inflation and the subsequent shrinking of its Foxcomm-style workers/slaves.

Dr. Engali's picture

Why would greece want to leave the Euro zone? They have it good. Spend more than they produce, get bailed out... threaten to default ...get a sweeter deal, and start all over. They would be silly to leave.

francis_sawyer's picture

Jeez if they had a nuke they would be North Korea...

Negro Primero's picture some euros?

"The 11 digit serial number on every note begins with a prefix which identifies which country issued it. German notes begin with an X, Greek notes start with a Y, Spain's have a V, France a U, Ireland T, Portugal M and Italy S. Belgium is Z, Cyprus G, Luxembourg 1, Malta F, Netherlands P, Austria N, Slovenia H, Slovakia E and Finland L."

walküre's picture

"This is not a credit event"

Dr. Engali's picture

Remember way back when Papa Poopy pants leaving the prime ministers position was supposed to fix all this?

Coldcall's picture


Leaving aside the comments of a non politcian, the Commerzbank CEO, I think its dangerous to automatically assume Merkel (inc Sarkozy) really wants Greece out of eurozone. Let us consider that Greece exits, replaces with a greatly devalued drachma, and after the dust settles in a year or two, we see some decent gdp growth, tourism booming, property selling etc...If Spain and Italy are still limping along, enduring crazy EU inflicted austerity what are they going to think when they look at the new post-euro Greece?

I believe this scenario is what keeps the EU elite awake at night.

more evidence to support this view comes from Sarkozy disagreeing about an EU fiscal takeover of Greece. He is not stupid, he knows if they push too hard Greece will go out.

And the Commerzbank CEO does not have the sort of political capital invested in the eu project as do the euro political elite. He is thinking he is relatively clean of risk in a greek bankruptcy.

I think we have underestimated just how important the eurozone project is to these political is sort of insane level of self interests at play here.

nbk11ln's picture

Greece's problems are so well known and documented- is it possible that the markets would breathe a sigh of relief and go higher if they defaulted?  I think back to August 1982 when the great bull market

began just as Mexico defaulted on its debt and was then followed by 26 or so other Latin nations.  The stock market took off and didn't look back.