This page has been archived and commenting is disabled.
Did Draghi Just Give Greece The All-Clear To Leave?
ECB President Draghi just admitted that while the ECB Governing Council would like Greece to stay, they will not take any further extraordinary measures to save it and will do everything they can to preserve their 'pristine' balance sheet - which sounds a lot to us like - 'we are not lending/printing/supporting your financial system anymore as you are far too big a risk (and are asset-stripped) and to be honest, it might be better if you just left - since we have encumbered all your assets anyway'.
Bloomberg: Draghi Signals ECB Won’t Keep Greece in Euro Area at Any Cost
European Central Bank President Mario Draghi indicated that while his “strong preference” is that Greece stays in the euro area, the bank won’t compromise on its principles to prevent an exit.
“The ECB will continue to comply with the mandate of keeping price stability over the medium term in line with treaty provisions and preserving the integrity of our balance sheet,” Draghi said in a speech in Frankfurt today. Since the euro’s founding treaty does not envisage a member state leaving the monetary union, “this is not a matter for the Governing Council to decide,” Draghi said.
The comments are the closest Draghi has come to conceding Greece could leave the euro region. Greece faces a fresh election on June 17 that may boost parties opposed to the conditions of its international bailouts, raising the specter of its exit.
“The Governing Council’s strong preference is that Greece will continue to stay in the euro area,” Draghi said.
As a reminder, when thinking of Europe, the shorthand rule is: assets. And specifically, the lack thereof. Why is the ECB scrambling to collateralize every imaginable piece of trash that European banks can procure at only some valuation it knows about? Simple - quality, encumbrance and scarcity. When one understands that the heart of Europe's problem is the rapid "vaporization" of all money good assets, everything falls into place: from the ECB's response, to Europe's propensity for infinite rehypothecation, to the rapidly deteriorating financial system. It also explains why America will be increasingly on the hook, either via the Fed indirectly (via FX swaps <http://www.zerohedge.com/news/european-fx-swap-line-usage-ny-fed-rises-f...), or indirectly via the IMF (such as two days ago when US taxpayers for the first time funded the first bailout check <http://www.zerohedge.com/news/us-taxpayers-commence-bailing-out-ecb-gree... the ECB using Greece as an intermediary).
»
- 13451 reads
- Printer-friendly version
- Send to friend
- advertisements -
Gone, baby, gone......
yup...only a delusional mad man would prepare a shit sandwich then eat it
it all depends on the dressing
It's ok guys. Snooki isn't pregnant after all!!
finally, my federal taxes went to something worthy...is that wrong?
Well, we've progressed from PIIGS to PIIS, for what that's worth.
the "g" in "PIIGS' grew-up -- it became a domineering HOG!
*{"the bears get fed - the pigs get fed - the HOGs get Slaughtered!"}
Newt must be crushed!
At least I know it isn't mine. Now I just have to figure out what to do with that burning rash.
The more bread one has, the less shit one has to eat.
drizzle for the shizzle.
So if the US funds part of the EU bailout via the IMF. Then is it fair to say that the IMF's announcment of $2B in gold purchases is admission that the US is also indirectly buying gold?
"Remember the time when you said you'd kiss him if he ate a horse turd? He ate the whole thing! Then, she doesn't kiss him 'cause his breath smelled like shit."
Charlie Kelly to Dee on taking advantage of Rickety Cricket.
I'm telling you. Always Sunny has its finger on the pulse of the modern world's stupidity. It's great!
having just waded thru the comments to the obesity article, I must ask if a shit sandwich is low carb? Does it matter if you buy the shit processed from a Safeway or ah grow your own? And does anyone certify organic sandwich shit?
All they need to do now is hash up some "exit law" and Bob's your uncle!
No I'm not :-)
Can't....resist...Happy Mondays...http://www.youtube.com/watch?v=m79WvFAWOqw
yes thumbs up thank you!!!
Thanks for the reminder :)
The markets need Bez to hand out some "happy pills" now.
It would help a bit.
check out pics of Greece's newest Parliament member:
http://legacy.roadrunnerrecords.com/blabbermouth.net/news.aspx?mode=Arti...
Giorgos Germenis, who plays bass in Greek black metal band NAER MATARON, has been elected to the country's parliament.
Hey, if they can learn black metal from the Norwegians, maybe they can learn how to manage their finances from them also.
that music is terrible wish him the best in parliament though.
Norwegian black metal is way better, and they don't screw around. Burning churches down and killing bandmates is way more metal than joining parliament.
"the bank won’t compromise on its principles to prevent an exit"
I just puked in my mouth. Then laughed. Then cried. Principles?
I've puked in my mouth several times this morning, beginning this morning with the BlowHorn's description of Ken Longone as the "consummate capitalist."
Uh huh. No one harboring anyone involved in this putrefied market can be described in that fashion...without inducing puke.
I too, mistakenly had the sound slightly up on CNBC this morning. I wondered "what was that shit sound ringing in my ears" - then I realized.....
I reached to mute the damn thing (usually have on mute but for the data flow) and just caught one the their "financial intelligence" promo ads.....and erped up a little breakfast.
I don't know who the hell they think they are fooling with that self-promotion ka ka.......certainly not anyone that has any intelligence.
People get dumber just listening to their shit, and that's what they count on. But evidently, from the ratings I've heard bantered about, their viewership is down to three unwashed democrats, two holier-than-thou republicans, and a mildly retarded parrott that sounds just like Jim Cramer.
If you compromise principle, you lose interest.
Oh, wait...
Buh-bye!!!!
Duetche Bank already rolling back over...but never mind. According to Simon Hobbs, I should simply listen to what Euro politicians say.
All is well.
Typical. Another royalist mouthpiece and etatist (S.H.).
typical southerner
typical yank
typical people who stereotype
Avtio!
Say it ain't so. I was hoping for a '2013 is 2012 is 2011'.
Women and children in the lifeboats first please!
They're all welcome! We except visa, mastercard and maistro.
It's 50k for a child, 75K for a adult and if the woman are cute they can work of their passage.
For the kids we also offer a discount if the can assemble sportshoes for the next 20 years.
"Thanks for stopping by. Don't let the door hit you in the ass on the way out." - Draghi
Wow... if this is truly his intention then... the bank runs yesterday will look like breadcrumbs compared to what will happen if Greece leaves...
Now, where did I put those Drachmas and 'ancient relic' gold coins?
Remember, the true action is the reaction. They're just breaking the eggs good before they finish the Euro-omelette.
Can you smell what Mario's cookin'?
The great and powerful draghi has spoken.
Draghi is Italian for dragon
One-eyed dragon is Mandarin for penis.
Odds Mario has a glass eye?
+1 Funny shit
Mission accomplished. Now that all assets have been handed to the banks they can leave and continue to pay interest, road tolls, airport fees, utilities etc to their foriegn owners. Now on to the rest of europe.
run greece run, and don't look back...
better free in hell, than a slave in the EU
Simple - quality, encumbrance and scarcity. When one understands that the heart of Europe's problem is the rapid "vaporization" of all money good assets, everything falls into place:
Bad money drives out good. Didn't I read that somewhere?
sschu
Greece needs Draghi's permission...??
I can't wait to hear Nigel Farage's take on this.
Long "I told you so's"
Spain, you're next
Portugal, then Spain.
The Greek gold reserves pledged as collateral a few months ago have dropped in value. Game over.
We continue to waste money on the broken global financial system so that when it comes to actual things that matter, we'll be broke, blind, and destitute.
Something needs to break in the psychopathy and lunacy that is policymaking.
"encumbered assets"....Yuuuuuuup!
Just when I think that things can't get any more fucked up, I am surprised. I am thinking that we are now in peak FUCKED-UPness (I don't think that is a real word). Only time will tell, but things look pretty scary right about now.
I wonder how many people thought that same thing in August 1939. Naw, it can't get anymore eFFd up than it already is. Could it?
Not even close to the peak! We will long for these sunny days............
Facts - Nigel Farage
http://www.youtube.com/watch?v=GBzGuqht5c4
O.T. .......
Tyler,
Can we get a little coverage on this?...... From your perspective?
http://www.rollingstone.com/politics/blogs/taibblog/accidentally-released-and-incredibly-embarrassing-documents-show-how-goldman-et-al-engaged-in-naked-short-selling-20120515
Thanks.
NO NO! I got somthing better!!
For all the FaceBook ponzi fans out there... GM and Ford both pulled all ad accounts with FACEBOOK stating the ADS DON'T WORK!! LMAO!
WELL NO SHIT SHERLOCK!!! NOBODY GIVES A FUCK ABOUT BUYING A CAR (OR ANYTHING) ON SOCIAL WEBSITES!! Which is especially interesting when looking at the biggest social media scam called LinkedIN!!! LMAO! That company is TOAST!! There's lots of meat on those bones for picking... just saying!
http://www.forbes.com/sites/joannmuller/2012/05/15/gm-says-facebook-ads-dont-work-pulls-10-million-account/
I think Big O (government motors)pulled the adds because Mark is no longer a US citisen
the whole issue of greece is that the money that the troika pays to the banks at exorbitant spreads transits via greece and ensures debt slavery of club med if they don't leave the Euro boat. Like the 12 year old Canadian girl said, Mario, super MArio is the banksta shill in the euro-pile. If now his bosses say we have to cut the cake in Greece and move on to bigger fish in Eurozone, he will do it. But the contagion risk to world banking will skyrocket as a result. Does his big boss Bernanke thus show he has no more bullets in his gun or is this preceding mega LTRO 3 and QE-3 accross the pond?
Things are hotting up in Greece, as the bank run is now so deep even the whore women within sing basta we can't take it no more! When the tarts run dry its time to kiss goodbye! 700 million euros out yesterday, and disappeared into non Euro zone UK/Swiss. Voila, what international banking is all about. Grill those greek roaches, once we have skimped them dry to their very bones. Bravo Eurozone! Victoria of Canada, you may be 12 and so fresh to the world of corrupt rotting fiat flesh, but you hit the nail on the head; a nail that the roaches have to suck before it turns and nails them all on their Golgotha crosses. If there is a God in the heavens he only seems to like the Bankstas these days!
Play on Victoria! And may the Victoria cross nail those bankstas one day!
Much as I might bemoan the idea of crypto-communists running Greece after the next election, SYRIZA do seem to know that the EU can’t just kick them out of the Euro if the voters endorse their ‘tear-up the bailout agreements’ pledge; Brussels will have to amend both Maastricht & Lisbon first, so it could prove to be great fun watching the ‘tail wag the dog’ for a change.
I can’t help but think that with the EU elites all now saying “well, we’d like Greece to stay, but if the drop the debt-ball they can go hang” is nothing more than an open-letter to the Greeks not to vote for SYRIZA. Call their bluff and the stink will be magnificent.
Viva la revolution un-comrades!
what the hell just spend a trillion or two dollars and pay down ALL the debts in Greece, Spain, Portugal and Ireland! enough with these half measures! it's not that much money. the debt payments are going to private banks in other countries anyway. how is the ECB not behind this?
If Germany decides to bail on euro, maybe it would work for them to accidentally permit wild-ass ponzi printing to pay existing debts then they will be forced to return to real money. One thing for sure, unlike US and France, the Germans are not stupid or lacking in resolve.
Keep your eye on SLV tracing out a bearish parabolic curve to the downside. It may be setting up to wash out painfully deep and possibly provide a buy of a life time anywhere sub 25. I could even imagine an intra-day collapse to 16ish though closing no where near that deeply.. or so I'm thinking in the coming days.
God I hope so
16 bucks would be a dream
Maybe tomorrow... Europe's gone to hang itself & it's PPT time.
BUT BUT ,,, The EURO dream!!!!!!!
In the immortal words of Kyle Bass
We can't continue support for "Profligate Idiots"
Buy the dips on TVIX
What about defaulting and staying in the Euro? I mean, there's no rule or mechanism in place to throw them out, right?
Check out the latest from the Capital Research Institute (CRI)
The Greek Dilemma
This is the problem with economically illiterate socialists. They think assets and wealth and money are fixed at a specific value and it is just a simple matter of redistributing it correctly
They fail to realize that the value of wealth assets and even the measure of wealth assets (money) varies and this value can go poof encumbered or not
The economic pie gets bigger or smaller based on human action
"...economically illiterate socialists..." You're repeating yourself.
I had a thought this morning about how my generation 'learned' (was taught, conditioned to think) about economic crashes - they happen suddenly.
The roaring 20's was a great party, then the stock market crash of '29 ruined everything. (In fact, there was 5+ years of speculative excess leading up to it.)
The great fall crash of '88 (or was it 89?) just a complete surprise.
LTCM - Huge growth, big surprise pop (took all summer).
The dot com bubble burst of 2000 - sudden - everything was raising just like yesterday and the day before, then it kerashed, boom. (After 3 years of excess growth and 15,000 prediction for the DOW.)
The sub-prime crash was building for years, before Bear Stearns, then six months later Lehman - then the boom.
Many of us on ZH have expressed the idea of "Just crash, damnit" re Greece because we are conditioned to the idea that big time economic crashes happen fast. In fact, in thinking about past crashes, many if not most of them happen in a kind of slow motion, with a long build up to some penulament 'tipping event'.
Looks like we have at least another month to wait for the Greece vote, which may or may not trigger - over a least two weeks if it goes 'badly' for the Eurocrats - some scramble to find a semi-graceful transition out of the EuroZone, while staying in the EuroUnion - which I think might be engineered as, if nothing else, sort of a 'face saving' measure and a template for Portugal, Spain, etc.
In other words, this sob is gonna drag through the summer at a minimum without a clear-cut conclusion.
Hope I'm wrong about this.
And this time they mean it. Right?
Threats and nothing more. Greece has to stay at all costs. empty rhetoric to try and control Greek people' actions. It wont work but neither will actually kicking them out. Potential consequences are too big. All the eurorats will go down together in a the sinking ship.