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Cost Of Second Greek Bailout Raised To €145 Billion

Tyler Durden's picture


When the first revision of the second Greek bailout to the tidy round number of €130 billion was announced, we scoffed, mockingly. Because a country which then had a 7% budget deficit, and now has a deficit that will be well in the double digits, and not to mention a banking system that is now hollow following tens of billions in deposit withdrawals as month after month the Greek bank run gets worse, would obviously need much more liquidity (but banish the thought that it is a solvency crisis...) Sure enough, earlier today Der Spiegel broke the news that the second bailout, which has yet to be re-ratified, and absent Greece meeting demands to cede fiscal sovereignty, is likely a non-starter, would be increased to €145 billion "citing an unidentified
official from the so-called troika." So whether or not this is true is irrelevant: what matters is that Spiegel released the article in the same series of posts in which it explained just why Germany has full right to demand (via European enforcement mechanisms or however) virtually anything in exchange for the ongoing endless bailout (such as: Merkel macht Wahlkampf für Sarkozy and Griechenland sträubt sich gegen EU-Aufpasser). Which means one thing only: the great propaganda spin machine is now on, and its only purpose is to provide Germany a buffer of "having done everything in its power" to prevent the now inevitable Greek default. Which, incidentally, means that a Greek default is inevitable. Because at this point once the default floodgates open, the question will be not where the bonds will trade, but just how big the impairment on the European DIP (aka Troika bailout package) will be.

More from Spiegel:

The situation in Athens is more dramatic: the EU wants to take control of Greece's budget, the rescue package for the ailing state amounts to SPIEGEL information on 145 instead of 130 billion euros. In Berlin, formed a broad resistance to further aid.


It's like a bottomless pit: the planned emergency measures for Greece are not enough to lead the country out of crisis. According to the troika of the EU Commission, European Central Bank and the International Monetary Fund, the country still needs one additional 15 billion euros. Instead of 130 billion euros, as yet decided in late October last year, would be about 145 billion euros due, according to SPIEGEL information in the Troika, which started recently, her work in Athens again.


Reason for the gap is worsening the economic situation in Greece. "We do not believe that you can collect the missing money solely with the private creditors," it says in the Troika.


In the Berlin coalition is forming, however, resistance to further Griechlandhilfen , as it has brought, among other things, the EU Commission comes into play. "At our attitude has not changed," said CSU leader Horst Seehofer in Der Spiegel. "For reform standstill, there is no money." The CSU reject new aid for Greece over the programs adopted out, Seehofer said. "If the Greeks do not implement the reform programs, it can give no further assistance."


Also FDP parliamentary leader Rainer Bruederle calls for a relentless attitude towards Athens. "Solidarity is a two way street, so far as the European Community must stand firm and demand the necessary structural reforms," ??he says. "Only when the Greeks also provide evidence that they are serious, we can and must help the European Community."

German political support for a Greek bailout is next to zero:

The first coalition MPs have already announced that they plan to vote against a new Greece package. The Bavarian FDP members Erwin Lotter, who has previously approved all the euro rescue package would not do the same in the case of Greece. "I thought, the Greeks took their time," he says. "Now I am assuming that there is a bankruptcy, the problems can not be solved with more money."


The CDU -female politician Wolfgang Bosbach, announced that he will not vote for new tools Greece. "The Greeks do not lack the political will, but the economic strength to get back on its feet." Even in the European wing of the party is spreading now from discomfort. "It has become a big annoyance made ??broad," says the chairman of the EU Affairs Committee Gunther Krichbaum.


"All Greek parties must finally show the absolute will to change anything fundamentally." The deputy chairman of FDP Toncar Florian said, Greece is by far the most difficult decision for his party.

Last, and certainly least according to the Germans, is the Greek government, which until the news broke late last night, had no advance warning of German intentions:

The government in Athens according to the information officially know nothing of the plan.

At least Hank Paulson was kind enough to let congress and the population know when he came up with his three-page blank check term sheet to bailout his former employer. In Europe, Greece apparently was not even worthy the cost of a fax with the German one-pager before it was leaked to the press.


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Sun, 01/29/2012 - 03:35 | 2106868 nah
nah's picture

this isnt not a race bro


Sun, 01/29/2012 - 04:15 | 2106873 lolmao500
lolmao500's picture
Obama administration using loophole to quietly sell arms package to Bahrain

Obama doesn't seem to care when selling weapons to a dictatorship killing it's own people. Guess what, Obama is now a dictator with NDAA. Will you be able to sleep tonight?

Sun, 01/29/2012 - 04:34 | 2106879 Tuffmug
Tuffmug's picture

Just more political theater and bluff by the Germans.  Germany knows a Greek default is Mutual Assured Destruction but played with debt instead of nukes. It would trigger a chain reaction of debt repudiation and bank insolvencies. They can't walk away but are bluffing that they will to sucker someone else to pay for the bailout. They are stuck to Greeks like Brer Rabbit to the Tar Baby.

Sun, 01/29/2012 - 07:28 | 2106958 slewie the pi-rat
slewie the pi-rat's picture

this is where  ORI's spamming would appear if he had not jumped the sting, LOL!!!~~~ i mean, string, again

can you imagine how crazy he must be to keep doing this, here?  how insecure can a little man who has served Mammon his entire life, while apparently doing  breathing and stretching exercises, BE to keep putting up OT links, as if this were fukBuk or puffHo? 

Sun, 01/29/2012 - 07:21 | 2106960 Sandmann
Sandmann's picture

With the Feds after Deutsche Bank and KfW in Germany after Deutsche Bank for dodgy CMOs sold to IKB which had to be rescued in Germany; and the DEutsche deal with jOhn Paulson in the USA; I guess Banking is not top of Germany's priorities now. The simple fact is given the choice between Banks and Nations, the issue is becoming clearer - Nations survive, Banks don't. Who cares about a Greek Default ? any fool still holding Greek Debt probably bought it in a flea market

Sun, 01/29/2012 - 06:45 | 2106939 The Alarmist
The Alarmist's picture

What, are you using Google translation? Kind of understandable, but not very good.

Sun, 01/29/2012 - 07:00 | 2106948 slewie the pi-rat
Sun, 01/29/2012 - 07:37 | 2106967 Element
Element's picture

Fear not, the stress tests said no worries.

But seriously, we can't blame Merkel for insisting on getting at least SOMETHING back for all the money they wasted in Greece.

However, what people are also foolishly over-looking, and what has been true from April 2010, is that Greece has never been bailed out by Germany.

Only EU banksters were bailed out.

And the actual Greeks have been getting it up the arse ever since.

So who could blame them for saying thanks, but no thanks, we aren't going to let you steal every last shred of national control.

And that is what every state in the EU would also say, especially Germany.

So much for the EU project, it's only been a Red Sheild bankster scam all along anyway.

Good riddance.

Sun, 01/29/2012 - 07:55 | 2106980 falak pema
falak pema's picture


Euro Crisis and contagion : If the Pigs have to generate budget surpluses of 10%/yr to bring down their debts; by increasing taxation and reducing government spending, thus creating unemployment and killing consumption, resulting in anaemic growth net of inflation, the economic spiral spells ECONOMIC  UNSUSTAINABILITY. Solving Greece does not solve Portugal ans Spain.

Debt mountain will never disappear. So Euro peripherals will never get out of economic gridlock. So the first world banks will eventually burn and cause mega deflation on its own current momentum in this Euro austerity mind set.

This whole US/EU/JAP/UK debt mountain construct of first world now depends on external economic growth to pull down its own debt laden BS and thus allow its endogenously anaemic economies to rise from the ashes on other people's demand pump. The euphoric Chindia horizon, but will it materialise? The mega infrastructure boom in Chindia/Russia/Brazil? It might, but these economies are so opaque and not necessarily on same page as pax americana.

Ulternatively, Keynesian monetised expansion fed on debt can create a new growth horizon within first world : war induced, or new technology infused by creating an alternative paradigm frontier that generates autarcic growth BEFORE interest payment gridlock totally sets in within the core economies. But this strategy, encouraged by the FED/ O'bammy admin. does not look on the cards as on Merkel mind set dominated Euro side its not being endorsed in the current political mire.

However, print to infinity may be on the cards if ECB under GS mantra caves in. BUT, only if it will mean the Oil exporting nations will have to bleed their wealth to buy up first world debts mega big time. We are seeing this increasingly with Qatar. Will they, the Qatari/Saud clique,  be able to stem the tide, by this circular economy, that writes off surplus build up in RM commodity rich nations vs debts in consumer first world? This is what happened in old petro dollar days prior to the inflation crisis of 1970s in Brazil/MExico where its was all funneled as debt incentive to artificially pump local growth. Its a long shot. Those BRIC are now more mature than in 1970 days, but there is a snag : As those RM exporters, like Iran, Venezuela and Russia are not friendly to US first world agenda in pax americana. "We do have a problem Houston" on political front.

Given these fault line in global construct of NWO now afloat in debt tsunami, we look like we are heading towards inevitable deflation spiral, given all these economic and political walls to good intercontinental dialogue, where US hegemony will not be able to carry the debate all on its own; too many balls in the air. And in the resulting doldrums and its socially destructive aftermath, inexorable people's ire, the boomerang effect that this generates, could feed a virulent demand for deadly accountability from those who have stashed profits off-shore and dried the collective nation state pumps on-shore of first world nations. There will be blood; and not just of the sheeple if deep deflation sets in. 

Its time that the first world Oligarchs realised that.

Conclusion :

1° Euro zone monetises, Central banks print to intifinty and demand Oil rich to participate to buy their collecitve debt.

2° USA  goes it alone and prints to infinty hoping to create a new economy frontier on its own.

3° Debt deflation world-wide and unpredictable fall out.


Sun, 01/29/2012 - 08:46 | 2106997 Element
Element's picture

But let's keep it simple.

GDP (and economic activity) is in a BUBBLE


Giant Credit bubble = Giant GDP Bubble

Credit is just spending tomorrows profits from POTENTIAL future productivity, today ... with unaffordable interest.

We bought it all forwards.

So we got a massive and long-running BUBBLE of what we came to know as 'economic activity'.

The "Great Moderation" was a complete fucking scam - literally!  It was the greatest usury theft in all of hysteri.

And we mistakenly think this was "GDP growth".

But it isn't, it's just a CONtemptable lie.  The banksters and politicians knew all along that the GDP figure was just a huge house of cards built on expanding credit to suckers at high interest.  A grand illuson, so the fleecing could exist, and could accelerate, and have the flock feel smug and willing about all dah growf!  DAH GROWFF!!!!

A 'Depression' is just the mean-reversion back to a more realistic AFFORDABLE rate of economic production and consumption. i.e. one that can continuously pay for itself from trade profit.

Any one who thinks a realistic US GDP is $15 trillion beni bucks, is living in fantasy land, a crank, a nutter, has a doctorate ... maybe a no-bell prize.

Try about $3 trillion for US GDP, if you're really lucky.

US GDP fell 85% last time, so don't scoff.

Ok, now, what would a realistic US budget look like?  And I mean a real budget, not this laughable MMT shitbird document they hand down every year from dah USSA buddjet dierektoR.

CBO? ... Paul? ... any one?

Sun, 01/29/2012 - 10:40 | 2107010 falak pema
falak pema's picture

sorry for fat finger...watching nadal/djoko.

two sets all...djoko's passionara made him come. Well done. Awesome.

Sun, 01/29/2012 - 08:24 | 2106995 props2009
Sun, 01/29/2012 - 09:05 | 2107022 navy62802
navy62802's picture

We are on the cusp of another European war. That's what this is. The supposed union of European nations was crafted in order to prevent another massive war, and this union is being truly tested for the first time. It is quickly disintegrating.

Sun, 01/29/2012 - 10:07 | 2107066 Eally Ucked
Eally Ucked's picture

And who are the opposite sides?

Sun, 01/29/2012 - 11:11 | 2107132 Watson
Watson's picture

Russia takes advantage of the chaos to take a piece of Poland?

Sun, 01/29/2012 - 11:19 | 2107147 Watson
Watson's picture

Via the Ukraine - Putin gets to settle a lot of old scores...

Sun, 01/29/2012 - 11:27 | 2107160 Watson
Watson's picture

And Putin probably doesn't regard Belarus as a proper country either...just 'simplifying the borders'...

Sun, 01/29/2012 - 13:53 | 2107419 Sandmann
Sandmann's picture

No it wasn't. It was impossible to have a European War with Occupation by US and Soviet forces unless the US wanted to fight. No European country could wage war without US permission because NATO determined its military composition. The EU was simply to give France control when gErmany re-armed in 1957 and made the D-Mark convertible after 8 years. The D-mark was printed in the US in 1947 and imposed on Germans in 1949 causing the Soviets to split the country into two states and blockade Berlin.

The EU wwas created in 1957 to make German industry pay subsidies to French farmers that the French Government could no longer afford to buy votes. It was the old story of using Industrial Cities to buy Agricultural Votes


Sun, 01/29/2012 - 14:00 | 2107447 GeneMarchbanks
GeneMarchbanks's picture

'No European country could wage war without US permission because NATO determined its military composition.'

No American is willing to understand this. They only hear what they want to hear.

Mon, 01/30/2012 - 08:09 | 2108996 Ghordius
Ghordius's picture

but why? why is the general American electorate that blind to the empire?

I used to have frigging normal conversations with my relatives in the US about why this fleet is going there and where whose interests are. In the past. Some disagreements, but still, a dialogue.

now the same persons are under some strange taboo compulsion of "do not mention the empire" or something similar

and their children are completely oblivious, even the thirty-year-olds - they seriously believe someone is going "to get them" "because they hate our freedom" - one of them was furious about Lybia, even talking about the "damn Brits and French not giving up their evil imperial ways"...

Sun, 01/29/2012 - 10:35 | 2107091 El Gordo
El Gordo's picture

Since the Greeks can't afford oil to run their economy, the Germans might give them some bicycle powered generators.  Their citizens can take turns pumpin those bicycle pedals for hours on end to generate a little electricity to power their overlords mansions.  In return, they will be allowed a few hours off every evening to go fish to see if they will eat that night.  Sounds like a real deal.  Now, I don't care about much, but I personally don't want to be spending the rest of my days riding a motionless bicycle for hours on end.

Sun, 01/29/2012 - 11:24 | 2107152 duckarooni
duckarooni's picture

BBC reckons that the Eurozone crisis is Germany's fault anyway.

Sun, 01/29/2012 - 11:54 | 2107185 falak pema
falak pema's picture

She initiated the original Euro rule as of 2009 : We will NEVER be joint and several via ECB, for debt emission. No Eurobonds, no joint and several sanctuarisation of banks in trouble, its every nation state that clears its own deck. But to her credit it reflected the Treaty in substance, but not the reality of crisis which had made the Treaty totally irrelevant. 

They worked on that basis and neither France, nor Germany, nor Italy, checked out the extent of their banking sector intricate shenanigans and its systemic risk, or at least pretended not to, singing "alles gut" here!, until it was too late and banks and peripheral sovereigns went down in flames under market pressure.

So it was her original sin, and its stayed that way; even though the ECB now uses the back door, and the sovereigns spreads  on each sovereign rocketed under market attack, like the Costa boat sunk after it hit a rock, and have made the US banks and HFs rich at the expense of the Euro sovereigns; something that could have been avoided if EUro zone had correctly understood the risk in 2009 and built a true fire wall at that time on "joint and several" basis, which they now try to do in this twelveth hour! Merkel woke up once the horse had bolted to consider closing barn door!

That is her making, although she cries NEin today; as the bottom line is if the banks  collapse the market indexed German pensions all go down to zero as their stock market collapses. In France and Italy pensions are on "mutual generational savings fund" basis, and less sensitive to market collapse, but will also be affected if banks are nationalised. The Euro has now gone viral.

Sun, 01/29/2012 - 13:48 | 2107400 Sandmann
Sandmann's picture

Romano Prodi never supported the Stability & Growth Pact anyway. It was a fig-leaf from Theo Waigel in Germany, Kohl's Finance Minister when German opposed the Euro. Germany met Maastricht Criteria by revaluing Bundesbank Gold Reserves and booking the implied gain to the Budget Deficit - I think Greece or Italy pulled the same stunt.

For German Voters - Merkel's stupid ideas on Budget Discipline are a warmed-up version of the Stability & Growth Pact from Kohl's Party all over again. Merkel is Kohl's chosen successor and Schauble was Kohl's deputy when this whole farce started in 1990s with Kohl spending money like water to buy friends and get his Re-Unification through.

The BBC is typically looking at issues in isolation rather than sequence.


Sun, 01/29/2012 - 11:36 | 2107166 AC_Doctor
AC_Doctor's picture

The Declaration of Independence 1776:  All men are created equal and there are certain unalienable rights that governments should never violate. These rights include the right to life, liberty and the pursuit of happiness. When a government fails to protect those rights, it is not only the right, but also the duty of the people to overthrow that government. In its place, the people should establish a government that is designed to protect those rights.

Sun, 01/29/2012 - 11:56 | 2107189 Instant Wealth
Instant Wealth's picture

Hmmm ... *calculate*


That makes $48.41 a day for the average Costas Katastrophoulos.

Sun, 01/29/2012 - 12:00 | 2107195 The Count
The Count's picture

Lets get the record straight:

1) The Greeks are led by a horde of perpetual liars. They lied to get into the EU, they lied to get bailed out faster. How can you ever trust these people?

2) The Germans never paid the Greeks the war reparations they were due. Thanks to the US, the Germans actually hardly paid any of their post war debts back. So kinda understandable that the Greeks are p.o.'d with the pretentious Germans. 

3) Both 1) and 2) are hardly ever mentioned in the MSM. 

Sun, 01/29/2012 - 13:41 | 2107374 Sandmann
Sandmann's picture

Actually it was Italy that occupied Greece and the Bulgarians not only the Germans, but seemingly only the Germans have money. The Greeks have never paid the British for saving them from the Communists in 1947, nor from helping them gain independence in 1821. Then again the Ottomans have never paid reparations for occupying Greece in 1453 after Constantinople fell and Muslims occupied Christian lands. What can one do ? Wherever the Ottomans invaded - Bulgaria, Romania, Greece, Albania, Kosovo - lack of institutional integrity became the cultural norm and lack of order and law. The Greeks have much more to blame the Ottomans for than the Germans. In fact the Greek Commercial Code was imported from Germany to provide some structure. Greek problems result from Greek business and political elites rather than Nazi occupation. The Greeks entered the EU because the US wanted them in just as the US has pressured the EU to admit Turkey with Britain its satellite advocated the cause against Franco-German opposition. The 1967-73 period of Military Dictatorship provided Greece with a period of rapid growth and stability backed by the US and foreign investment in a key NATO geopolitical region.


The return of men like Andreas Papandreou and his PASOK Socialist Party changed Greek society but also built the new structures of pork barrel and log-rolling that expanded voter bribery with borrowed funds and created the kleptocracy to replace the class system of the rich families ruling through their conservative politicians. Greece is fundamentally flawed as a political entity and that requires foreign money to keep the gamblers in business

Sun, 01/29/2012 - 12:11 | 2107208 RobotTrader
RobotTrader's picture

Why is everyone so angry and depressed on this site?


Quite simply, we are in the midst of one of the most glorious periods of financial history, which will be talked about for the next 100 years.

-  Despite mountains of bad news heaped upon the tape, the SPY is up almost 95% off the March 2009 lows.

-  REIT and retail stocks have seen the most fantastic runs ever recorded.  Who would have figured that in the midst of the gloom when every major bank stock was falling off a cliff and big wire houses were failing left and right, that within a 3 year period, the XRT would be printing lifetime highs?

-  TPTB has created the biggest Fixed Income bubble ever seen, while at the same time doubling the amount of Federal Debt and municipalities spending like crazy.  This is nothing short of a miracle.

-  Despite the shrieks from the "Peak Oil" crowd, natural gas prices are at record lows and gasoline prices have been flat for 2 years running now.  No rationing.  No gas lines.  The 5,000 mile salads still available everywhere.

-  Even though the dollar has strengthened, manufacturing in the U.S. has started to increase for the first time in years.  Industrial stocks will probably have one of the biggest years ever in 2012 - 2014.

-  The central bankers around the world have proved without a doubt that they can "manage" pretty much any crisis that is thrown at it, which can only increase the confidence of the business community, knowing that TPTB has the tools to stave off virtually any threat of economic collapse.

We are witnessing one of the greatest financial market rallies in history in real time.

Never before have we seen both stocks and bonds stage vicious, uninterrupted 3 year rallies like this.

Sun, 01/29/2012 - 12:17 | 2107219 The Count
The Count's picture

Did the blue pill taste good?

Sun, 01/29/2012 - 12:22 | 2107227 Schmuck Raker
Schmuck Raker's picture

I don't think a pill can explain it.

I suspect head trauma; people need to wear helmets when riding their bikes.

Sun, 01/29/2012 - 13:13 | 2107267 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Praise the peas and pass the popcorn.

Sun, 01/29/2012 - 20:34 | 2108271 malek
malek's picture

I would even call it one of the most shiny periods of financial history, with all the gold I'm stacking up!

Mon, 01/30/2012 - 07:59 | 2108994 Element
Element's picture

Maebe it's cose dah IMf and whirld bwankster say dah nnned is nigh 4 europa?

Sun, 01/29/2012 - 12:21 | 2107224 Schmuck Raker
Schmuck Raker's picture

[wrong spot]

Sun, 01/29/2012 - 14:12 | 2107481 Matt
Matt's picture

145 billion euros amongst 11 million Greeks is about 13,000 each. Why not just give 13,000 to each Greek, and let free markets sort it out?

Sun, 01/29/2012 - 14:41 | 2107546 Kipper und Wipp...
Kipper und Wipperzeit's picture

From an excerpt from a book by Barry Smith -- which, by the way, I highly recommend -- written back in the late 90s on the "new world order" plan:

Speaking about why New Zealand was used as a prototype, from the perspective of the NWOers ...

"Whatever you do, don't choose a volatile group such as the French, the Spanish, the Italians or the GREEKS. The whole thing would quickly become far too complicated as they would all, with a great waving of arms and legs, protest every single step of your restructuring of their lives."

(the index is at

By the way although it is religiously based this guy is not at all a nut, I really strongly recommend reading through some of his material, it is amazing how much of it rings true today and how much of it has come to fruition. As far as the religious piece, well, that is between you and God. But look at the politics & the economics first, if you are disinclined to take the religious piece seriously, and perhaps see how it all fits together.

Sun, 01/29/2012 - 16:20 | 2107854 zerozulu
zerozulu's picture

I donn't understand what is all this fuss about. Ben should print US$B200 and walla one country is out of debt. It will cast US Tax payer only US$120million @US$0.06 per $100 bill

Sun, 01/29/2012 - 18:09 | 2108057 Matt
Matt's picture

Out of debt for one year.

The Greek economy is ~$300 Billion USD / year.

The government gets around 35 percent in taxes = $120 Billion per year.

EVERY YEAR, they spend ~$150 BILLION. They spend 50% of GDP EVERY YEAR! They spend 25% more than they take in every year! $30 Billion per year deficit!

The ONLY solution is that they MUST cut spending.


Sun, 01/29/2012 - 19:09 | 2108150 The Swedish Chef
The Swedish Chef's picture

Don´t ya´ll worry. Mario Draghqueen will pull a ten trillion LTRO out his ass and have an all-you-can-eat liquidity buffet. The only condition is that participating banks buy at least ten billion Euros worth of PIIIGS bond before they pass out....

Sun, 01/29/2012 - 20:32 | 2108267 malek
malek's picture

to provide Germany of "having done everything in its power" to prevent the now inevitable Greek default.

Yes, that's it, and had become visible for some days already!

Do NOT follow this link or you will be banned from the site!