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ECB Stops Monetary Policy Operations To Some Greek Banks

Tyler Durden's picture




 

Update: some additional color from MNI, as Europe scrambles for damage control:

The European Financial Stability Facility (EFSF) is expected to approve an E18 billion recapitalization disbursement for Greek banks within the next four days, and the banks should get the money within a week, a senior Eurozone official told MNI Wednesda.

 

Earlier today MNI reported that the European Central Bank was growing nervous about delays in the recapitalization program for Greece and was threatening to suspend its lending to Greek banks as a means of expediting the decision.

 

"This has been a point of concern for the last month, and it was debated during Monday's Eurogroup meeting, where ECB President Mario Draghi and EFSF head Klaus Regling were present," the official said. "Up until then, the EFSF had sided with the Greek Financial Stability Fund, which was delaying the recapitalization process because it disagreed with certain points of the assessment of Greek banks' eligibility for the funds," he explained.

Just as we predicted moments ago, and as Dutch Dagblad warned overnight:

  • ECB STOPS MONETARY POLICY OPERATIONS TO SOME GREEK BANKS AS RECAPITALISATION NOT IN PLACE -CENBANK SOURCES

From Reuters:

The European Central Bank has stopped monetary policy operations with some Greek banks as they have not been successfully recapitalized, euro zone central bank sources said on Wednesday.

 

The ECB declined to comment.

 

The ECB only conducts its refinancing operations with solvent banks. With no access to ECB funds, the banks concerned must go to the Bank of Greece for emergency liquidity assistance (ELA).

 

It was unclear exactly how many banks were affected.

 

One person familiar with the matter said four Greek banks' capital was so depleted they were operating with negative equity capital. According to its own rules, the ECB cannot provide liquidity to banks in such a situation.

The beginning of the end? Or just more political posturing? In the meantime, EURUSD tumbles.

 

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Wed, 05/16/2012 - 11:10 | 2431491 Dumpster Fire
Dumpster Fire's picture

Definitely picked a bad week to quit sniffing glue.

Wed, 05/16/2012 - 11:12 | 2431512 CvlDobd
CvlDobd's picture

Shit's getting ugly! Gonna need more lipstick!

Buy ULTA!

Wed, 05/16/2012 - 11:13 | 2431524 GetZeeGold
GetZeeGold's picture

 

 

Heh heh....please stop the car....I think I'm gonna hurl.

 

Wed, 05/16/2012 - 11:20 | 2431555 Bleeding Fart
Bleeding Fart's picture

Would going to Europe this summer be a bad idea? Gold is too heavy too carry. How about some precious gems? (The first half of my question is serious.)

Wed, 05/16/2012 - 11:32 | 2431604 crawldaddy
crawldaddy's picture

for awhile the USD, is goona be strong and buy alot fo stuff.  Enjoy it while we can.

Wed, 05/16/2012 - 12:06 | 2431710 FlyoverCountryS...
FlyoverCountrySchmuck's picture

"A While..." being until January 1, 2013, when TAXMAGEDDON hits.

•The individual income tax rates will rise to 15%, 28%, 31%, 36% and 39.6%.
•The long-term capital gains will be taxed at a maximum rate of 20%.
•Dividends will be taxed as ordinary income.
•The phase-out of personal exemptions for higher-income taxpayers will be reinstated.
•The limit on itemized deductions will be restored.
•The child tax credit, adoption credit, and dependent care tax credit will all be cut back.
•The “marriage penalty” will be restored.
•Education incentives will disappear altogether, or be significantly cut back.
•The elevated estate tax exemption of over $5 million is scheduled to fall to $1 million, and the top rate will revert to 55% from 35%.
•The alternative minimum tax (ATM) patch which increased the amounts exempted from this tax will reset to lower amounts, subjecting a larger group of middle income taxpayers to the AMT.

Wed, 05/16/2012 - 12:46 | 2431906 DosZap
DosZap's picture

FlyoverCountryS...

Will it stop Illegals from filing IRS 1040's, and claiming nieces and nephews as dependents(who LIVE in Mexico), and gettig $26,000 back from the IRS?.

In just one instance four illegals used one legals address, claimed 20 dependents(not dependents,in Mexico), and together got back around $40k in OUR tax dollars..........using fake SS #'s and address, and fake dependents.

The HEAD of the IRS knows this is going on, and refuses to speak to the issue......................thus far, in 3yrs, its cost US Taxpayers well over 4 Billion dollar in fake returns.

AND not one soul in the IRS gives a shit.

So, wtf are we still filing at all?

Wed, 05/16/2012 - 14:12 | 2432360 Nobody For President
Nobody For President's picture

In other words, we will be back to the days when this country ran budget surpluses, and the debt was getting paid down. What a terrible idea! I managed to survive and prosper during those days, somehow I don't think this is gonna kill me, though it will effect my income enough to notice. So fucking what?

We need to cut spending, yes. Lots of it. But the taxes also have to revert to 1998-ish levels, or we will face a true financial armageddon - this taxmaggedon bullshit is the rich crying wolf, again. If all these things were to happen, i.e. reversion to levels of 'the good ole days'; the world will not end. Never happen, our craven, bought and sold congress will make sure we continue along the path the total, complete debt serfdom.

Cuts AND taxes, biltchz! Or does math not apply to fiscal policy?

Wed, 05/16/2012 - 11:33 | 2431605 Arius
Arius's picture

no, i think is a very good idea ... you might find some good bargains.  i went through athens airport a couple of days ago, never seen so many americans coming through .... 

Wed, 05/16/2012 - 11:47 | 2431606 hedgeless_horseman
hedgeless_horseman's picture

 

 

Want to pay for that trip?

Tenet Healtcare THC down another 2%. 

lol

Selling MOBs isn't sustainable growth.

Air pockets below, so put your tray table up, seat fully forward, and buckle up, bitchezzz.

Reserve a center-balcony table for me at Le Grill at Hotel de Paris.  8pm then we'll hit the tables.

Wed, 05/16/2012 - 11:58 | 2431687 He_Who Carried ...
He_Who Carried The Sun's picture

Greece leaving the Euro

is actually a great thing and very bullish to the Euro.

Time to go shopping, Guys.... :-))

Wed, 05/16/2012 - 12:01 | 2431695 hedgeless_horseman
hedgeless_horseman's picture

 

 

...and so Spain leaving would be XX Mucho Bullish?

Wed, 05/16/2012 - 11:36 | 2431626 RoadKill
RoadKill's picture

Should be a great time to visit Santorini cost wise. And people there are older and more relaxed. But Id avoid Athrns and all the party islands like Mykinos or Ios and the big tourist ilse of Crete. To many young people there.

Spain will be a mess. It will suck if these asshole rioters ruin Barcelona and Madrid. Beautiful cities. Pamplona will probably Devolve into out right rioting. Major cities in Italy will also be risky. We ran into more protestors and violence in Rome and Florence then anywhere else in Europe (we were in Europe for 2 months last summer durimg all this). The French and Italian Rivereas will be fine as always.

Id tell you to avoid big cities. Do like Cannes, Nice, Theoule, Monte Carlo, Italian Riviera (cinqa terra). Switzerland, Austria and Luxemborg. MAYBE Bennelux (not sure).

Wed, 05/16/2012 - 12:32 | 2431820 indygo55
indygo55's picture

I'm going in a few weeks with my 16 year old son. Feeling a little queezy right now. 

Wed, 05/16/2012 - 13:00 | 2431981 pods
pods's picture

Rumor has it that Louk lives up to his name. Bring along some chorizo and you will be fine.

Wed, 05/16/2012 - 11:16 | 2431527 Alea Iactaest
Alea Iactaest's picture

Only a matter of time until 1.27 is in the rear view mirror...

 

 

 

 

Edit: Well, we got 1.268 followed by a stick save.

Wed, 05/16/2012 - 11:28 | 2431588 bdc63
bdc63's picture

WWZD (what would Zeus do)?

Wed, 05/16/2012 - 11:14 | 2431531 ihedgemyhedges
ihedgemyhedges's picture

ALL YOUR GYROS ARE BELONG TO US!!!!

Wed, 05/16/2012 - 11:19 | 2431551 mayhem_korner
mayhem_korner's picture

 

 

A 6 Euro (Drachma?) Gyro is going to be a 20 Euro Gyro once the plebes empty all the ATMs at the first bank of Olives.

Wed, 05/16/2012 - 12:56 | 2431959 Carl Spackler
Carl Spackler's picture

Send the Repo Men to grab the Acropolis.

 

Wed, 05/16/2012 - 13:09 | 2432020 NotApplicable
NotApplicable's picture

Soros likely holds the title already (via NGO proxy, of course). Like all other holders, he's just going to sit back and let the "political process" work it's magic in diminishing the strength of the opposition.

At least that's what I'd do if I were a billionaire "philanthropist."

Wed, 05/16/2012 - 11:29 | 2431589 King_Julian
Wed, 05/16/2012 - 11:41 | 2431638 Shleprock
Shleprock's picture

I'm still sniifin ... double nostril Bro!

Wed, 05/16/2012 - 12:01 | 2431703 jus_lite_reading
jus_lite_reading's picture

HOLD THE PRESS!!

Hearing rumors that 50 Euro limit on ATM withdrawls now in effect in central Athens and surrounding areas!!

Anyone else hear this?

Wed, 05/16/2012 - 12:11 | 2431737 Marginal Call
Marginal Call's picture

Rumors have had the ATMS empty for days.

Wed, 05/16/2012 - 13:09 | 2432027 NotApplicable
NotApplicable's picture

But what's the limit on Drachmas?

Wed, 05/16/2012 - 11:08 | 2431492 ebworthen
ebworthen's picture

Can't happen soon enough.

Wed, 05/16/2012 - 13:09 | 2432016 machineh
machineh's picture

'The ECB only conducts its refinancing operations with solvent banks.'

HA HA HA HA!

I am shocked ... SHOCKED ... to learn that some insolvent banks may have attempted to put taxpayers' money at risk!

Wed, 05/16/2012 - 11:08 | 2431493 Brak82
Brak82's picture

The beginning, bitches!

Wed, 05/16/2012 - 11:34 | 2431620 bdc63
bdc63's picture

the beginning?! ... I thought we were at least at the 7th inning stretch ...

Wed, 05/16/2012 - 12:00 | 2431698 FlyoverCountryS...
FlyoverCountrySchmuck's picture

It's the end of the beginning. What happens from here on out is anybody's guess.

 

But hey, those 30% 10-yr bonds are a NO BRAINER, right JPM?

Wed, 05/16/2012 - 11:10 | 2431494 Yikes
Yikes's picture

US markets rolling over.

Wed, 05/16/2012 - 11:14 | 2431518 fonzannoon
fonzannoon's picture

and rolling back

Wed, 05/16/2012 - 11:17 | 2431539 catacl1sm
catacl1sm's picture

Wow, that was fast. Some had their finger on the 'buy' trigger.

Wed, 05/16/2012 - 11:29 | 2431564 VonManstein
VonManstein's picture

+1

hahah "rolling over" less than 0.10 %

(ok i spoke too soon)

Wed, 05/16/2012 - 11:23 | 2431569 Yikes
Yikes's picture

aaaand back down again.  Could be crazy day. 

Wed, 05/16/2012 - 13:12 | 2432035 NotApplicable
NotApplicable's picture

Battle Bots, FTMFW!

Wed, 05/16/2012 - 14:23 | 2432431 Nobody For President
Nobody For President's picture

Could be?

hahahahahahahahaha

 

Roller coaster, bitcheezzzzzz

 

(Forgive me, I'm ON today and making money hand over fist. Tomorrow I'll probably get creamed...)

 

Wed, 05/16/2012 - 11:10 | 2431497 junkyardjack
junkyardjack's picture

I was wondering what brick wall the market just smashed into...

Wed, 05/16/2012 - 11:13 | 2431525 navy62802
navy62802's picture

It's called reality.

But no worries, looks like we have a V-shaped recovery in the Dow at least. Haha.

Wed, 05/16/2012 - 11:11 | 2431499 Killtruck
Killtruck's picture

This is bullish...right? Right?

I KNEW it.

Wed, 05/16/2012 - 11:15 | 2431537 SMG
SMG's picture

Always.

Wed, 05/16/2012 - 11:11 | 2431501 Slope of Hope
Slope of Hope's picture

I recently got ripped by some Europeans because our currency is all the same color.  How do you like us now?

Wed, 05/16/2012 - 11:19 | 2431543 mayhem_korner
mayhem_korner's picture

 

 

They're just ticked 'cause they don't have the contract on the bazillion gallons of toner that's gonna be needed.

Wed, 05/16/2012 - 11:30 | 2431599 aerojet
aerojet's picture

If you're talking about US FR notes, that isn't the case anymore--the $10 bill is freaking purple!  The $5 note is looking a bit unhealthy red, too. 

Wed, 05/16/2012 - 12:27 | 2431805 tarsubil
tarsubil's picture

Hehe.

http://imgace.com/pic/2011/09/us-monopoly-money/

It is a little enhanced but I think the joke is on US.

Wed, 05/16/2012 - 11:11 | 2431502 surf0766
surf0766's picture

The beginning of the end of Greece or of Euro or of both?

Wed, 05/16/2012 - 11:14 | 2431532 mayhem_korner
mayhem_korner's picture

 

 

Both-plus.

Wed, 05/16/2012 - 11:22 | 2431568 saturn
saturn's picture

the euro machine will soon stop working completely if there is nothing to greece it with..

Wed, 05/16/2012 - 13:27 | 2432123 viahj
viahj's picture

Euro bank solvency will stop if there is no Greece through which to funnel fiat from the ECB, et al. to the banks

Wed, 05/16/2012 - 11:10 | 2431506 the not so migh...
the not so mighty maximiza's picture

But But The Euro dream!!! That big modern tower of Babel and all that shit.

Wed, 05/16/2012 - 11:11 | 2431509 fonzannoon
fonzannoon's picture

am I crazy to think that as the weak countries exit the euro, the euro would strengthen?

Wed, 05/16/2012 - 11:16 | 2431533 Quintus
Quintus's picture

If the weak countries weren't in hock to the others for massive, system-threatening amounts of money, then possibly.

 

Sadly, the PIIGS will take the rest down with them.

Wed, 05/16/2012 - 11:45 | 2431650 Bay of Pigs
Bay of Pigs's picture

And of course, we are led to believe that the US banks have no exposure to any of this trash?

We have decoupled? LOL.

Wed, 05/16/2012 - 12:06 | 2431715 Bizaro World
Bizaro World's picture

Excellent point.

 

I talk to too many ignoramuses that think when EU explodes, US will be just fine and dandy, we are separated by an ocean after all....what a joke. As we're seeing, and have been seeing for some time, turmoil in EU means turmoil in US markets. When the system is soooo propped up and manipulated, even an errant unannounced fart [JPM] can send things tumbling, the collapse of a major world economy is kind of a big deal.

The US dollar will do well short term as EU explodes since it is still seen by the masses (with short memory apparently) as a safe haven asset, until it isn't. Reality will eventually set back in and people realize US is in extremely poor shape financially and probably should have been leading EU in terms of implosion/explosion rate.

For all the Ron Paulers (and this will probably earn down arrows), he is unelectable by current USA until a major collapse actually passes...unfortunately, at that point, hard core socialist/communist/totalitarian are also very electable as their moto is "never waste a crisis" and will be ready to pounce.

Wed, 05/16/2012 - 12:33 | 2431824 tarsubil
tarsubil's picture

Generally, realistic opinions don't get down arrowed.

Wed, 05/16/2012 - 11:12 | 2431510 jus_lite_reading
jus_lite_reading's picture

This is truly the beginning of the end of the EU... next you'll hear France heading to the doors followed by BANK RUNS IN EVERY EU COUNTRY followed by MASSIVE PANIC BUYING OF PM!!!!!

GET READY BOYS!!! ;) The EU disintegration I talked about is about to come to fruition...

 

Wed, 05/16/2012 - 11:33 | 2431607 Non Passaran
Non Passaran's picture

Scuse me, mista, but after 4 years of seeing nothing happening I'm skeptical.
I've got my PMs and all, but at the moment the Japan scenario seems most likely to me. I wouldn't be surprised if we stayed in this Schroedinger cat state till 2020. Just saying...

Wed, 05/16/2012 - 11:40 | 2431637 jus_lite_reading
jus_lite_reading's picture

Everything comes in cycles. We had 10 months of calm (14 if you use a broad step) and now we have ? months of the chaos effect...

Be patient grasshopper...

Wed, 05/16/2012 - 11:32 | 2431613 Hulk
Hulk's picture

Its only a flesh wound !!!

Wed, 05/16/2012 - 11:35 | 2431618 Joe The Plumber
Joe The Plumber's picture

Popcorn check
Beer check
Blow check
Widescreen TV check

I am ready!!!!

Wed, 05/16/2012 - 11:50 | 2431663 Clueless Economist
Clueless Economist's picture

Blow ain't good for you

Wed, 05/16/2012 - 12:02 | 2431699 pods
pods's picture

Are we speaking of the noun or verb?

Wed, 05/16/2012 - 12:59 | 2431978 CvlDobd
CvlDobd's picture

Obviously neither.

Wed, 05/16/2012 - 11:52 | 2431672 WhyDoesItHurtWh...
WhyDoesItHurtWhen iPee's picture

 you forgot hookers

Wed, 05/16/2012 - 12:22 | 2431785 Joe The Plumber
Joe The Plumber's picture

Oh shit

Gotta have hookers

Wed, 05/16/2012 - 14:28 | 2432450 Nobody For President
Nobody For President's picture

Hey Joe, your logical call last night on the market today - how's that doing for yah?

(Just tweakin' - I love yuh.)

Wed, 05/16/2012 - 11:14 | 2431511 Cdad
Cdad's picture

This does not matter, as the European equity market will be closed shortly, and everything will be fine again.

And anyway, no one on the BlowHorn [CNBC] is talking about this, so it truly is not important.

Wed, 05/16/2012 - 11:14 | 2431514 Cognitive Dissonance
Cognitive Dissonance's picture

That first step (down) is a doozy.

Wed, 05/16/2012 - 14:30 | 2432467 Nobody For President
Nobody For President's picture

Old Paratrooper jodie chant:

Oh, jumpin' out of planes is really fun.

Oh, jumpin' out of planes is really fun.

The experience is rich,

But the first step is a bitch,

Oh, jumpin' out of planes is really fun.

 

Wed, 05/16/2012 - 11:14 | 2431519 RyanW525
RyanW525's picture

Facebook will save the day!!

Wed, 05/16/2012 - 11:34 | 2431616 eatthebanksters
eatthebanksters's picture

By the time Zuckerburg gets his money he should be able to buy a loaf of bread with it...

Wed, 05/16/2012 - 11:14 | 2431521 slackrabbit
slackrabbit's picture

Actual Tyler that is in fact a HelpDesk call.....print server is broken ;-)

Wed, 05/16/2012 - 11:13 | 2431522 TonyCoitus
TonyCoitus's picture

Maybe we can finally get to the real news.......did Roger Clemens lie about using steroids?

Wed, 05/16/2012 - 11:14 | 2431534 GetZeeGold
GetZeeGold's picture

 

 

That and the President is gay and there's a war on women I guess.

 

Wed, 05/16/2012 - 12:35 | 2431835 tarsubil
tarsubil's picture

Yes, enough of this global financial meltdown crap that is just a distraction for the real important news.

Wed, 05/16/2012 - 11:16 | 2431526 Tsar Pointless
Tsar Pointless's picture

Killtruck, indeed, it is bullish.

Bullish as bullish can be.

And pointless, too. Don't forget - above all, it's pointless.

Wed, 05/16/2012 - 11:14 | 2431528 kaa1016
kaa1016's picture

Headline whiplash. I sense a flash crash sooner rather than later...zero bid coming to a stock near you.

Wed, 05/16/2012 - 11:17 | 2431538 mayhem_korner
mayhem_korner's picture

 

 

I have no stocks near me...just neat piles of metal stuff.  :D

Wed, 05/16/2012 - 11:18 | 2431546 Cdad
Cdad's picture

Prepare the bailout for whatever mentally retarded [my apologies to regular retarded people] firm that has been selling all of the VIX ETFs, while buying XIV and selling straddles on the spot.  Nothing unwinds faster than complexity.

I'm sure, when the bailout is announced for this menaly retarded firm, it will be for the good of the nation.

Wed, 05/16/2012 - 11:16 | 2431536 mayhem_korner
mayhem_korner's picture

 

 

Does this fade this morning's housing starts?

Wed, 05/16/2012 - 11:19 | 2431544 the not so migh...
the not so mighty maximiza's picture

yeah no more bailouts, i would say so.

Wed, 05/16/2012 - 11:18 | 2431545 catacl1sm
catacl1sm's picture

I expected markets to open green on the housing farts news and then trim down back to baseline and then to 'follow' whatever 'news' came out throughout the day. Alas, I was wrong, which is why I don't play in this sandbox. I sit on the bench and watch the kids get dirty.

Wed, 05/16/2012 - 11:17 | 2431542 Dr. Engali
Dr. Engali's picture

Bank run bitchez!

Wed, 05/16/2012 - 11:22 | 2431563 the not so migh...
the not so mighty maximiza's picture

Red line that Vespa to the bank!!!

Wed, 05/16/2012 - 11:25 | 2431578 DogSlime
DogSlime's picture

Big queue at the cash machines in Greece tomorrow, I suspect.  When the cash machines start running dry and aren't being filled...

Wed, 05/16/2012 - 11:33 | 2431609 PR Guy
PR Guy's picture

As a PR Guy I would put out a press release that it was a technical or network problem and that normal service will resume after the 'bank holiday' that's just been announced.

 

If you are in Greece, get your money moved now guys.*

 

* (does not constitute investment advice.... just common sense)

 

Wed, 05/16/2012 - 12:39 | 2431849 DosZap
DosZap's picture

DogSlime

700 billion Euros already left Grease, and that was weeks before this............................just like the Frogs, jumping the Channel.............taking their fiat to U.K.

Wed, 05/16/2012 - 11:20 | 2431547 VonManstein
VonManstein's picture

greece exit is good for EURO no? greece is the main trouble maker so...

or am going contrarian contrarian here..

Wed, 05/16/2012 - 11:30 | 2431597 crawldaddy
crawldaddy's picture

greece is just the first domino.  Spain, portugal, ireland, italy, among many others following Greece soon enough

Wed, 05/16/2012 - 11:19 | 2431548 JackT
JackT's picture

Where are all of those newly printed and withdrawn EURs going?  

Wed, 05/16/2012 - 11:21 | 2431550 AustrianEconomist
AustrianEconomist's picture

Check out the latest from the Capital Research Institute (CRI)

The Greek Dilemma

Wed, 05/16/2012 - 11:20 | 2431552 Dr. Engali
Dr. Engali's picture

Do as we tell you or we will stop funding all your banks! Got it?

Wed, 05/16/2012 - 11:21 | 2431553 PR Guy
PR Guy's picture

Is anything actually happening or did it just go down a bit and then back up a bit? Is this a real story or one of those "nothing to see here, just move along please"?

Wed, 05/16/2012 - 11:20 | 2431554 catacl1sm
catacl1sm's picture

While everyone is concentrating on the EUR/USD, has anyone noticed the NZD/USD? WTF is going on there? NZD had been getting hammered!

Wed, 05/16/2012 - 11:20 | 2431556 slackrabbit
slackrabbit's picture

merkyl to greece, one last time  http://www.evtv1.com/Player.aspx?itemnum=5777

 

Wed, 05/16/2012 - 11:20 | 2431559 youngman
youngman's picture

Well I wonder if I should keep my money in the Greek Banks or not........??????

I kind of feel sorry for them...but then I don´t.....

 

Wed, 05/16/2012 - 12:51 | 2431919 brooklynlou
brooklynlou's picture

Its a very vicious coin toss where your guess is as good as someone elses

  • You take them out, Greece implodes, but the Euro remains, you win
  • You take them out, Greece implodes, but the Euro fails, you lose
  • You leave them in, Greece implodes, but the Euro remains, you lose
  • You leave them in, Greece implodes, but the Euro fails, you win

Pick your poison since its all just a coin coss at this point

PS - The correct answer of course was to convert as much Euros as possible in to USD and/or PM and wait on the sidelines with a tub of buttered popcorn. Unfortunatley that would have required a degree of cynicsm and mistrust of ones elites that not all have; ie that should have been done YEARS ago.

Wed, 05/16/2012 - 13:10 | 2432032 spine001
spine001's picture

Your first instinct was the right one. Feel sorry for them. We should always feel sorry for people that are being used and abused without their knowledge and that is what's happened to most Greeks, a very small minority is responsible for this. Chief among them are the financiers in the USA that engineered the loans that they should have never gotten.

Until next time,

Engineer

Wed, 05/16/2012 - 14:45 | 2432525 Nobody For President
Nobody For President's picture

I respectfully disagree - the squid was hired by a batch of (elected) corrupt greek politicians to cook their books. Selfsame politicians have (PASOK and New Democracy) been milking the system for years paying out and off for the votes to keep them in power, outdoing one another for give-aways to get re-elected. Take a good look at former fatboy finmin, head of party Venzelious - this obese head spokesperson for austerity who looks like he has never practiced austerity a day in his life.

The US financiers were just hired hands doing what they do best, cookin' the books and skimming a bunch off top before exiting stage left.

Wed, 05/16/2012 - 11:21 | 2431566 virgilcaine
virgilcaine's picture

We are building up to something it would appear.  One can feel that D undertow.

Wed, 05/16/2012 - 11:25 | 2431575 Village Smithy
Village Smithy's picture

This reminds me of the time my Mother was giving my brother money to pay off his credit card debt but he was just spending it on his various "hobbies". Oops. 

Wed, 05/16/2012 - 11:28 | 2431577 crawldaddy
crawldaddy's picture

Largest overall economy  in the world in turmoil, Japan is a nuclear fallout area, US congress doesnt work, but yeah, suzy can post pictures of her cat on the web for her friends to see, so  bullish baby..

Wed, 05/16/2012 - 11:26 | 2431579 Moneyswirth
Moneyswirth's picture

Hey, we should be more like Europe!  They have free shit and great pensions.  Here in the US, we have to work for shit.  Dammit.

 

Wed, 05/16/2012 - 11:26 | 2431585 crawldaddy
crawldaddy's picture

yeah, sure, if you havent been paying attention, hard work in america gets you one thing... tired.

work for shit...LOL...  yeah you keep believing that wall street work hard for their 10 million dollar annual paycheck.

Wed, 05/16/2012 - 11:32 | 2431614 aerojet
aerojet's picture

Seriously, the US is a case study in anomie--we think we're working towards some goal, but they keep moving the goal further and further out, so all we really experience is cognitive dissonance.

Wed, 05/16/2012 - 12:05 | 2431709 pods
pods's picture

Nah, the goal only seems like it is moving away cause the constant inflation is dragging your ass farther back while some bankster kicks back and earns their skim.

Mafia has got nothing on the bankers. 

Wed, 05/16/2012 - 12:20 | 2431775 Joe The Plumber
Joe The Plumber's picture

Everybody has to determine their own utilities and where the margins lie. In my case hard work is paying off but i will go galt as soon as it doesnt

Government in the usa has yet to figure out how to tax idleness and nonpoductivity

Wed, 05/16/2012 - 11:25 | 2431581 ghostzapper
ghostzapper's picture

Maybe we are finally going to break out to the downside on EURUSD and Spider.  I was perplexed as to how long the PPT and their teammates were able to keep EURUSD above 1.30.  Noe they must be really scrambling!  This should be interesting.

Wed, 05/16/2012 - 11:25 | 2431582 fuu
fuu's picture

But but but I heard the bank run was all a figment of your imagination Tyler!?!

Wed, 05/16/2012 - 11:27 | 2431583 e-recep
e-recep's picture

die already, euro! die!

Wed, 05/16/2012 - 11:26 | 2431584 mac768
mac768's picture

and the hf robots follow the news into the ditch

time to buy the meaningless news dip, because the money will flow anyway sometimes later

Wed, 05/16/2012 - 11:31 | 2431598 midgetrannyporn
midgetrannyporn's picture

volatility exceeds parameters = QE3

Wed, 05/16/2012 - 11:30 | 2431601 Bearish News
Bearish News's picture

I may have to finally take the wife to Greece, after it settles down a bit.

Wed, 05/16/2012 - 11:35 | 2431619 aerojet
aerojet's picture

Yeah, after half the population kills the other half.  I'm sure it will all turn out fine when there's about 3.5 billion people on the planet instead of 7+ billion.

Wed, 05/16/2012 - 15:00 | 2432615 Bearish News
Bearish News's picture

Don't think Mad Max scenarios are likely. Eventually Greece will return to the drachma. Their tourism industry will boom. Pensioners and gov employees will take a hit, but that's already happening.

Wed, 05/16/2012 - 15:16 | 2432690 e-recep
e-recep's picture

yeah, greece will be dirt cheap after exiting the euro, but i have my doubts about the future service quality.

Wed, 05/16/2012 - 11:36 | 2431610 virgilcaine
virgilcaine's picture

Do hft's algo's have ZH in the cue? For perspective and balance.  You can see them going haywire with all of the headlines.

Wed, 05/16/2012 - 11:36 | 2431623 Mark123
Mark123's picture

WTF....GE up 3.3%???

 

So, are we going to go through months of Greece "news" that moves the market up on good rumors and retraces about 30% of gain on denial of rumor??

 

Saw interesting article yesterday about people who have been foreclosed on getting fresh new mortgages from FHA (3.5% down).  Man....gotta love those tough new banking rules that protect us from any more trouble!  And they say home builder sentiment is way up....duh....sub-prime is back baby so our dull-witted, lazy, unskilled, uneducated, overweight populace can buy new cars and houses again!!!!

Wed, 05/16/2012 - 11:37 | 2431625 Conman
Conman's picture

Sell the Rips, buy the fucking Dips. Who needs any kind of fundamentatls to trade stocks on these days?

Wed, 05/16/2012 - 11:36 | 2431627 virgilcaine
virgilcaine's picture

Wait til they see "Greece Exits Euro"...

"Debt Default across Eu"

"JPM files Ch  11"

 

Wed, 05/16/2012 - 11:37 | 2431628 fonzannoon
fonzannoon's picture

CNBC is so pissed at ZH right now without naming them directly for putting these "rumors" out.

Wed, 05/16/2012 - 11:57 | 2431688 Global Hunter
Global Hunter's picture

positive rumours are good, negative ones are bad in their minds

Wed, 05/16/2012 - 11:39 | 2431632 semperfi
semperfi's picture

Still sleeping thru all this eurobullshit - wake me up when something REALLY happens - zzzzzzzzzzzzzzzzzzzzz....

Wed, 05/16/2012 - 11:41 | 2431641 RoadKill
RoadKill's picture

Anyone want to go to Santorini with me this summer to look for beachfront property to buy.

Wed, 05/16/2012 - 11:47 | 2431657 Mark123
Mark123's picture

wait till global liquidity drys up....then and only then buy assets (Greek or otherwise).

 

I think next year might be a good bet...but who knows how long this insanity can go on for.

Wed, 05/16/2012 - 12:05 | 2431712 pods
pods's picture

Next year is a good bet as the new political class will no doubt be focused on austerity.  Good time to pick up some deflationary bargains.

pods

Wed, 05/16/2012 - 11:40 | 2431642 RoadKill
RoadKill's picture

Anyone want to go to Santorini with me this summer to look for beachfront property to buy.

Wed, 05/16/2012 - 11:47 | 2431656 Conman
Conman's picture

No but i'm booking a Greece trip as soon as they go back to the Drachma. Dollar should go a long way there when that happens.

Wed, 05/16/2012 - 11:59 | 2431693 RoadKill
RoadKill's picture

A trip lasts a week. A beach house in Santorini lasts a lifetime. Or at least untill they burn it down or global warming sinks the island.

But if you can pickup a beach house for the same cost as a trip - who csres. Santorini residents will probablu be the last to figure out whats going on. Island to too beautiful to sit inside watching CNBC. Not easy to get to an ATM. So lots of local retirees with 100k euros in the bank will wake up with 100k Drachma and their 90k euro mortgage will convert to 9mm drachma. Go in with some USD or gold (which you can buy in portable form at any forex office in nearby Turkey)

Wed, 05/16/2012 - 11:58 | 2431684 youngman
youngman's picture

I think you might wait a year or two until things settle down and they have all the bodies buried.....

Wed, 05/16/2012 - 11:44 | 2431649 Gloomygus
Gloomygus's picture

All of what follows is speculative political speech delivered by a US citizen from within the United States:

Wow, it's just amazing how well the various "Tylers" predict the future, particularly the future as it depends on the actions of the central banks and primary dealers. How many articles incorporate the phrase "Just as we predicted X minutes/days/weeks/months ago, our prediction has become manifest?"

See: http://www.google.com/search?q=zerohedge+%22just+as+we+predicted%22&ie=U...

I predict that these predictions will continue with supernatural regularity - for people in the business of predicting, what conclusions do you draw from uncanny prognostication? And I don't mean the responders I am about to draw that will glom on down-arrows and malice. I mean actual third-party readers of this site - life is unpredictable, but not here in so far as the predictions relate to the actions of central banks and their best.

Also, as the entire exercise is fixed, I would follow the advice of the Tyler's to the letter right up to the point that they take everything from you. Trouble is you'll be so used to "winning" you won't know when you are about to lose it all. Good luck and place your bets. The house is sitting next to you.

Wed, 05/16/2012 - 11:52 | 2431673 fuu
fuu's picture

You're pretty new around here aren't you?

Wed, 05/16/2012 - 11:56 | 2431678 catacl1sm
catacl1sm's picture

You're much higher caliber of troll than usual, but you still fail to provide any facts to backup your assertions. Welcome to fight club, bitch!

Wed, 05/16/2012 - 12:02 | 2431704 fuu
fuu's picture

What do we expect from a Safari user?

Wed, 05/16/2012 - 12:00 | 2431689 Dr. Engali
Dr. Engali's picture

Sorry I missed your two week birthday. Happy belated birthday.

Welcome to fight club.

 

Wed, 05/16/2012 - 12:18 | 2431764 Village Smithy
Village Smithy's picture

The "Tylers" come to work everyday and try to un-bury the truth. A truth that in reality an army of media shills, politicians, bureaucrats, technocrats, banksters and financial industry leaches, work ruthlessly to keep hidden. They use every means at their disposal to accomplish this including, media hyping, unbalanced reporting, bending/falsifying statistics, and plain lying. I think that when, inspite of these odds, the Tylers are successful a little self congratulations is in order. Almost anytime the Tylers post an "I told you so" there is an accompanying link to the post in question verifying that they indeed told us so. You won't get that on CNBS.

Wed, 05/16/2012 - 11:46 | 2431651 Bastiat009
Bastiat009's picture

The only difference between the euro and gold is the color.

That said I find it uncanny that the value of a large international company depends entirely on the name of the Greek prime minister. In other words, whoever chairs a major company in the world is irelevant because the value of his or her company depends on what the Greek parliament decides. Well, if it's not true explain to me why stock markets across the world have risen and fallen over the past few months.

Wed, 05/16/2012 - 12:09 | 2431725 pods
pods's picture

Yep, couple of keystrokes and bam!  Krugs fall from the sky.

pods

Wed, 05/16/2012 - 11:45 | 2431654 Roy T
Roy T's picture

OFF TOPIC-

BREAKING NEWS TD

Whitney Tilson to appear, yet again, on Fast Money Halftime to explain why he is adding to his JCP position

Wed, 05/16/2012 - 11:46 | 2431658 farmerjohn2112
farmerjohn2112's picture

Endgame.

Wed, 05/16/2012 - 11:48 | 2431661 navy62802
navy62802's picture

From Reuters (via ZH tweeet) - "One person familiar with the matter said four Greek banks' capital was so depleted they were operating with negative equity capital. According to its own rules, the ECB cannot provide liquidity to banks in such a situation."

http://www.reuters.com/article/2012/05/16/us-ecb-greece-banks-idUSBRE84F...

YIKES! That can't be good news.

Wed, 05/16/2012 - 11:53 | 2431665 guinea
guinea's picture

Woman lying on her back staring at the ceiling:  Just get it done already!

Wed, 05/16/2012 - 11:52 | 2431669 Go Tribe
Go Tribe's picture

It's about time someone had the guts to cut off a bank from the public trough.

Wed, 05/16/2012 - 11:55 | 2431679 NEOSERF
NEOSERF's picture

Cmon Tyler, quicker, gotta keep up with those trader twitter rumors as the market is shooting back up so apparently Greece is fixed now

Wed, 05/16/2012 - 11:57 | 2431685 gatorengineer
gatorengineer's picture

Tyler(s)  Please run a story on how much the US is out on Greece if they stiff the IMF, would be interesting to know how much our one worlder president cost us.  I think its around $30B but not sure.

Wed, 05/16/2012 - 12:19 | 2431761 bbaez
bbaez's picture

Good Point..  It would be nice to know the numbers

Also any indicators on whos gold we are holding  

Wed, 05/16/2012 - 19:09 | 2433387 TheSpiritOfTheTimes
TheSpiritOfTheTimes's picture

Yeah, both good points. Would be interesting. I think most of the data should be here on ZH already(?), since it has been covered for years now LOL!

Wed, 05/16/2012 - 12:20 | 2431774 walküre
walküre's picture

Merkel and Hollande decided last night that Greece is too expensive to save.

Italy and Spain are much closer connected to Europe and the Euro. Some risk of contagion but the benefits for Italy and Spain outweigh the downside.

Greece is done. Euro will stand, Euro Fiscal Union is coming next.

Wed, 05/16/2012 - 12:57 | 2431955 ThirdWorldDude
ThirdWorldDude's picture

Was it Junker that made the press-announcement?   /sarc

 

Wait for a few weeks until El hombre del manana pays them a visit, you'll see they'll change their minds again!

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