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Cue The Greek Denial

Tyler Durden's picture




 

Precisely an hour ago, just after Dow Jones broke the news that a Greek IMF director confirmed what everyone with half a frontal lobe knows very well, namely that Greece needs at least one more bailout, and realistically many, many more, because recorder debt can never fix record debt: you need recordest debt for that (just ask Keynesians), we said this:

And, as always happens in these cases, here it comes:

  • GREEK FINANCE MINISTER DENIES REPORT THAT GREECE NEEDS A THIRD BAILOUT
  • COUNTRY'S POSITIONS ARE FORMULATED ONLY BY HIMSELF AND PRIME MINISTER SAMARAS

Alas, the cat is now out of the bag, and any further denials out of Greece merely bring the moment of departure closer. Not even the EURUSD algos are buying it.

 

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Thu, 09/13/2012 - 10:42 | 2789542 Conman
Conman's picture

Time for another greek FinMin to faint and resign. Or was it time to get some eye surgery, eh either way bye bye, bring in the next one.

Thu, 09/13/2012 - 10:49 | 2789591 HoofHearted
HoofHearted's picture

We don't need a bailout. And none of us are gay. Oh, you have pictures? Well, that was just once when we were young and we needed the money. Shit, they're from last week? Damn Larry Craig.

Thu, 09/13/2012 - 11:26 | 2789756 gojam
gojam's picture

 

"Please Do Not Ask For Credit"
As A Public Slapdown Often Offends!"

Thu, 09/13/2012 - 13:21 | 2790582 Colonel Klink
Colonel Klink's picture

BOHICA Bitchez!!

Thu, 09/13/2012 - 10:42 | 2789546 Spider
Spider's picture

Rule #33 of Politics: Don't believe anything until it is officially denied.

Check that one off - 3rd bailout it is

Thu, 09/13/2012 - 11:10 | 2789688 Joe Davola
Joe Davola's picture

Don't forget the corollary:

 

Or the opposition is accused of the same, only worse.

Thu, 09/13/2012 - 10:43 | 2789549 ThunderingTurd
ThunderingTurd's picture

Apparently the math at the IMF is different than the math that finance minister and Samaras learned at school.

Thu, 09/13/2012 - 10:48 | 2789585 Global Hunter
Global Hunter's picture

lol, or their models are using varying degrees of impossible to ever acheive not even in one hundred years assumptions. The Greek's model has tax receipts increasing by 12% next year, the IMF have it increasing by 5% and voila the difference between needs and don't need a bailout.

Thu, 09/13/2012 - 10:43 | 2789553 Quinvarius
Quinvarius's picture

Well played, sir!

Thu, 09/13/2012 - 10:47 | 2789575 schatzi
schatzi's picture

True, well played. Though this game has become so transparent you don't even need half a frontal lobe to predict their behaviour.

Thu, 09/13/2012 - 12:23 | 2790081 ShrNfr
ShrNfr's picture

That still leaves Ben out.

Thu, 09/13/2012 - 10:43 | 2789558 Global Hunter
Global Hunter's picture

Dammit make it stop...make it stop!

Thu, 09/13/2012 - 11:00 | 2789640 Dr. Richard Head
Dr. Richard Head's picture

No, no, no!  Keep it coming.  Perhaps after bailout 50 the sheep of the world will see the fiat curtain for what it is....window dressing.

Thu, 09/13/2012 - 11:12 | 2789697 Nothing To See Here
Nothing To See Here's picture

All they need is a very innocent and technical thing, merely the absence of national sovereignty on the continent, and perhaps also removing popular voting on who leads the new State if you really want something perfect. Only then will everyone live happily ever after...

"Those who promise us paradise on earth never produced anything but a hell." - K. Popper

Thu, 09/13/2012 - 11:40 | 2789811 Vince Clortho
Vince Clortho's picture

Bailouts, debt figures, numbers, intellectual arguments are not going to convince the masses.

They will respond to losing their job, losing their house, not enough food, gas too expensive to fill up the car ...

For most people, it's simply not real until it hits you in the face.  Then you notice other people in your situation; people start talkiing to each other instead of listening to the propaganda from the talking heads on the boob tube.  At that point, change becomes possible.

Thu, 09/13/2012 - 10:45 | 2789562 LULZBank
LULZBank's picture

Seems like EU is fine, nobody needs bailouts.

Thu, 09/13/2012 - 10:56 | 2789622 Sudden Debt
Sudden Debt's picture

they don't need it but it would be a nice to have. You understand?

 

Thu, 09/13/2012 - 11:13 | 2789705 LULZBank
LULZBank's picture

Nice to have.. you mean like... so they can offer bailouts to their neighbours? Like Italy bailing out Spain, who doesnt want to be bailed out, but then Spain bailing out Greece, who doesnt want to be bailed out either... ???

I am no expert in philosophy, you know.

Thu, 09/13/2012 - 10:45 | 2789567 Xibalba
Xibalba's picture

Who's Greece?  

Thu, 09/13/2012 - 10:57 | 2789628 Sudden Debt
Sudden Debt's picture

The guys who make the olives that go with your coctail.

Thu, 09/13/2012 - 11:03 | 2789653 Nothing To See Here
Nothing To See Here's picture

I thought it was a John Travolta movie...

Thu, 09/13/2012 - 10:59 | 2789637 Schmuck Raker
Schmuck Raker's picture

IDK, a barbaric relic?

Thu, 09/13/2012 - 11:05 | 2789657 larz
larz's picture

who is greece? It has to be a bank

Thu, 09/13/2012 - 10:47 | 2789573 Dr. Engali
Dr. Engali's picture

Fuck...will something different happen?

Thu, 09/13/2012 - 11:08 | 2789678 GetZeeGold
GetZeeGold's picture

 

 

Wouldn't count on it......at least until after the elections.

 

Thu, 09/13/2012 - 11:08 | 2789681 kito
kito's picture

Only when the people overwhelmingly vote for the party that has the interests of the people will greece end the gutting of their nation.....until then the pillaging continues.......

Thu, 09/13/2012 - 11:12 | 2789698 TonyCoitus
TonyCoitus's picture

Which party is that?

Thu, 09/13/2012 - 10:47 | 2789577 foodstampbarry
foodstampbarry's picture

If everyone is in debt, no one is in debt. Bullish!

Thu, 09/13/2012 - 10:48 | 2789586 Bazinga
Bazinga's picture

I'm tired of this syndicated tv show. Guess we can look forward to many more reruns on the telly.

We need Kojack on the case. He doesn't take any crap while sucking on that lollipop.

Thu, 09/13/2012 - 10:48 | 2789587 fuu
fuu's picture

"COUNTRY'S POSITIONS ARE FORMULATED ONLY BY HIMSELF AND PRIME MINISTER SAMARAS"

He is the Formulator.

Thu, 09/13/2012 - 12:31 | 2790128 Nobody For President
Nobody For President's picture

And we are assuming the posititon.

Thu, 09/13/2012 - 10:48 | 2789588 ziggy59
ziggy59's picture

Class: 'Perception Deception 201'
Given at Propaganda University

Prereqs... BS 101, Lies 101, Lies 201, Say Anything 101

Thu, 09/13/2012 - 10:50 | 2789593 ebworthen
ebworthen's picture

"Who, me?"

Thu, 09/13/2012 - 10:50 | 2789597 Kaiser Sousa
Kaiser Sousa's picture

GREEK FINANCNCE MINISTER STATES, "THEY LYIN' ON US AGAIN...EVERYTHANG IS OKIE DOKIE....LOOK - OVER THERE, WAS THAT A UFO....."

Thu, 09/13/2012 - 10:57 | 2789631 Winston Churchill
Winston Churchill's picture

Dunno,

It's all Greek to me.

Thu, 09/13/2012 - 10:54 | 2789615 pods
pods's picture

Greece is merely being squeezed for every bit of collateral that can be stolen.

Reminds me of "Confessions of an Economic Hitman."

Scratch that, it IS "Confessions of an Economic Hitman!"

pods

Thu, 09/13/2012 - 11:04 | 2789654 malikai
malikai's picture

Exactly.

Thu, 09/13/2012 - 10:55 | 2789618 Sudden Debt
Sudden Debt's picture

I DID NOT HAVE SEX WITH YOUR WIFE!!!

oh... you mean... that wasn't the question?...

never mind....

 

Thu, 09/13/2012 - 11:01 | 2789642 yogibear
yogibear's picture

Greece, threaten to leave the Euro, Draghi and the rest will throw money at you.  He stated he will save the union at all costs.

 

Thu, 09/13/2012 - 11:01 | 2789646 Dareconomics
Dareconomics's picture

Back in March, Greece was playing chicken with the troika trying to wring the best possible terms out of them for its 2nd Bailout. A market panic was averted as Greece acceded to troika's (Germany's) austerity demands.

At the time, it was quite obvious that the 2nd Bailout was merely a can-kicking exercise. The best case scenario envisioned the Greek debt to GDP ratio falling to a still unsustainable 120% of GDP by 2020. If you have been paying attention to the Eurocrisis, you should know that the best case scenario is always a delusion. It was clear that Greece would eventually need a 3rd bailout, but even I am shocked that it happened so quickly.

It is in all of the relevant politician's interests to keep Greece afloat as long as possible. While some people claim that a Greek exit could be contained, that is a dangerous game to play. Maybe the banks and all of the businesses have succeeded in reducing their exposure to Greece and implementing a Plan B in case Greece leaves the Eurozone, but there will be unintended consequences.

As much as the Greek people protest and complain about their lot, they are addicted to troika payments just as much as the politicians on whom they direct their ire. Greece will continue to do whatever the troika says to keep the money flowing.

The troika cannot risk the consequences of a Greek exit. The potential costs are too great, and it is very cheap to keep Greece going. Greece is the the European Union as Indiana is to the United States in terms of size and economic importance. Don't you think the United States would come up with a few billion dollars to keep Indiana afloat if its default threatened the existence of the entire country?

The Northern countries' electorates won't be happy with another Greek bailout, but they do not want an economic catastrophe either. They will complain, but ultimately they will pay. Here is my detailed reasoning, written last month:

http://dareconomics.wordpress.com/2012/08/27/merkel-is-setting-the-table...

Thu, 09/13/2012 - 11:02 | 2789647 larz
larz's picture

Its Bush's fault

Thu, 09/13/2012 - 11:06 | 2789668 semperfi
semperfi's picture

There will be no exit by any Euro country without blood being spilled first.   Bets ?

Thu, 09/13/2012 - 11:11 | 2789691 larz
larz's picture

can this blood be spilled anywhere in the world or does it have tobe on the continent?

Thu, 09/13/2012 - 11:26 | 2789762 semperfi
semperfi's picture

Within EU. 

Thu, 09/13/2012 - 11:06 | 2789670 caimen garou
caimen garou's picture

we don't need more money but greece my palm please, thanks

Thu, 09/13/2012 - 11:12 | 2789699 Peter Pan
Peter Pan's picture

No number of bailouts will be enough until sustainability is restored. Everything else is just fat words and delusional hope.
Just write off her debt and put an end to her constant bailouts and agony.

Thu, 09/13/2012 - 11:13 | 2789704 TomGa
TomGa's picture

"Never believe anything in politics until it has been officially denied."

-- Otto von Bismark

Thu, 09/13/2012 - 11:19 | 2789727 the 300000000th...
the 300000000th percent's picture

I already see them needing a 6th and 7th bailout!

Thu, 09/13/2012 - 12:14 | 2790013 Anglo Hondo
Anglo Hondo's picture

 

 

Thu, 09/13/2012 - 11:26 | 2789759 MoreNails
MoreNails's picture

Schaeuble just out saying that Spain shouldn't ask for a bailout, while the Cypriot CB head "explaining" that the ECB will never need to actually buy bonds because, you see, the bazooka is just that impressive. So everyone has its fingers crossed for the magic to somehow hold, so that nobody actually has to do anything.

Thu, 09/13/2012 - 11:33 | 2789788 Brazillionaire
Brazillionaire's picture

When will this be over so that the Greeks can go back to dancing and smoking cigarettes?

Thu, 09/13/2012 - 11:37 | 2789802 FranSix
FranSix's picture

I'm thinking the object is to provide for a long dated bond price rally in the U.S.

Thu, 09/13/2012 - 11:55 | 2789885 Anasteus
Anasteus's picture

Of course, Greece doesn't need a third bailout, that's correct. It makes no sense to apply for a bailout as long as necessary conditions are unfeasible. Greece has no chance to meet the level of conditions proposed and required by Troika; it has already passed the point no return, just watch the general strike planned at the end of month. Greece wants the ECB to be acting in a condition-free mode, e.g. bond buying. And, in fact, there is no other way, if the EU puppets want Greece to keep euro and stay in line at all prices, they have to pay for it. If geopolitics is more important than economy then they have to pay... or better to say, we have to pay.

Thu, 09/13/2012 - 12:31 | 2790123 fiddy pence haf...
fiddy pence haff pound's picture

There will not be any blood. They just dropped an economic scatter bomb.

Everybody who can is leaving the country. There may be some food left for the rest.

Of course people are dying. It's a war.

 

Thu, 09/13/2012 - 12:39 | 2790202 Ungaro
Ungaro's picture

Who needs a functioning economy when you can have QE and bailouts forever?

Seriously, though... what the eurocrats do not get is that raising taxes and cutting public spending cannot lead to economic expansion (growth). You cannot slash your way to prosperity.

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