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Eurozone Refuses To Blink: Will Hold Back €1 Billion From Greek Payment To Monday

Tyler Durden's picture





 

Things are getting interesting. Despite earlier headlines that the €5.2 billion EFSF payment to Greece would be made as expected, money which would go to pay European banks and the ECB, it now seems there is more than meets the eye, and the Eurozone will in fact hold back €1 billion of the money until Monday in what is a major escalation in the relationship between the anarchy-controlled country and bankster oligarchy.

  • EUROZONE HOLDS BACK €1 BILLION FOR GREECE TO MONDAY ACCORDING TO A EUROPEAN SOURCE -Dow Jones
  • EFSF SAYS 4.2 BLN EURO TO BE DISBURSED MAY 10 - BBG
  • EFSF SAYS REMAINING FUNDS 1 BLN EURO NOT NEEDED BEFORE JUNE - BBG
  • EFSF SAYS REMAINING 1 BLN EURO DISBURSED DEPENDING GREECE NEEDS - BBG

Why is this an issue? Because net of the payment due TO the ECB, the payment that Zero Hedge pointed out first on May 15 to non-PSI compliant bondholders may very well not be made, unleashing total chaos as to what happenx next:

If Greece were not to get the money, it would face financing problems because of a lack of cash for salaries as well as money for the redemption of 435 million euros of a bond maturing on May 15, a bond that was not fully swapped into new paper under the Greek debt restructuring deal finalized last month.

Somewhere Tim Geithner, whose "plan" this latest farce is, is cackling for now. Soon, he will be crying.

 


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Wed, 05/09/2012 - 14:24 | Link to Comment Bazinga
Bazinga's picture

I will gladly pay you Tuesday for a billion today...NOT

Wed, 05/09/2012 - 14:33 | Link to Comment Temporalist
Temporalist's picture

I will gladly pay you Tuesday in Drachma for a billion today.

I think that sounds more accurate.

Wed, 05/09/2012 - 14:42 | Link to Comment AlaricBalth
AlaricBalth's picture

Here we go again with Greece and the Eurozone playing "financial chicken". 

Wed, 05/09/2012 - 19:10 | Link to Comment Peter Pan
Peter Pan's picture

After more than two years of this stupid game between Europe and Greece, no one is ahead except the bankers for the time being. For how long can this stupid game go on?

There is no consensus, no strategy no light at the end of the tunnel. In fact I don't even see a tunnel. I just see a shaft.

Wed, 05/09/2012 - 21:22 | Link to Comment Muppet Pimp
Wed, 05/09/2012 - 15:17 | Link to Comment disabledvet
disabledvet's picture

"in euro's." there...fixed it even more.

Wed, 05/09/2012 - 18:41 | Link to Comment Iconoclast
Iconoclast's picture

It was always the only real option, regress back to the old currency. Outrageous that the Greeks should now be treated like naughty school kids for not voting in the technocrats squid demands..

Wed, 05/09/2012 - 14:57 | Link to Comment williambanzai7
williambanzai7's picture

HOGANS ZEROES

Wed, 05/09/2012 - 15:22 | Link to Comment AlaricBalth
AlaricBalth's picture

Classic!

Wed, 05/09/2012 - 15:37 | Link to Comment falak pema
falak pema's picture

schulz....to beee or no to beee... Oh well; if shakespeare gets involved in this it will turn fast to chic porno...Once more into the breach dear friends...wow, the breach becomes a gaping hole..the size of the atlantic ocean...no, no no; I like it tight ...why do you propose to me these spreaaaaaads so wiiiiiiide! I don't like this strange weird feeling...I'm lost in translation! What should I say? Auw weider sein...Salut! Chiao? VAya con dios! Skol! Fuck you very very much! ...It's the tower of babel and the feeling is : I'm Tiny Tim! Don't like it at all!

Wed, 05/09/2012 - 15:43 | Link to Comment Mountainview
Mountainview's picture

The money is suposed to come back immediatly to our banks.. so you bank accountants will be very unhappy!

Wed, 05/09/2012 - 14:25 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

 

 

Greece better look out for what is in the other hand.

Wed, 05/09/2012 - 14:28 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

SIKE!!!

You bitchez remember sike doncha?

Wed, 05/09/2012 - 22:53 | Link to Comment StychoKiller
Wed, 05/09/2012 - 14:33 | Link to Comment junkyardjack
junkyardjack's picture

Better watch out for which end both of those are headed into

Wed, 05/09/2012 - 16:23 | Link to Comment Ookspay
Ookspay's picture

LOL Jack! At least the greeks are used to taking it in the ASS!

Wed, 05/09/2012 - 14:25 | Link to Comment qussl3
qussl3's picture

So they dont pay a creditor and some salaries?

How's that different from now?

Wed, 05/09/2012 - 14:31 | Link to Comment HoofHearted
HoofHearted's picture

Because then ISDA has to rule yet again, a new rounds of CDs defaults, we play spin the bottle to see who gets kissed and who gets totally fucked, and the dominoes all fall down...like toy soldiers. (I tink Martika should have written a song like this one instead of "step by step, heart to heart...")

Wed, 05/09/2012 - 14:36 | Link to Comment sessinpo
sessinpo's picture

HoofHearted                 2410726

Because then ISDA has to rule yet again, a new rounds of CDs defaults, we play spin the bottle to see who gets kissed and who gets totally fucked,

 

Comment:

Everyone gets screwed except for US dollar. Currency war. Allows Fed to ease without massive plummet in dollar. At least not plummet right away.

Wed, 05/09/2012 - 14:39 | Link to Comment Joe The Plumber
Joe The Plumber's picture

He he

There was an old troll who used to say that a lot but nobody listens to a troll

Wed, 05/09/2012 - 14:56 | Link to Comment msamour
msamour's picture

Well, you are certainly not dating yourself...

Wed, 05/09/2012 - 14:28 | Link to Comment rubearish10
rubearish10's picture

What's a billion between friends?

Wed, 05/09/2012 - 14:31 | Link to Comment Temporalist
Temporalist's picture

Instant "austerity" on the populace.  I knew I should have taken those classes on "How To Be A Better Bankster."

Wed, 05/09/2012 - 14:31 | Link to Comment Pancho Villa
Pancho Villa's picture

Warning shot across the bow.

Wed, 05/09/2012 - 14:31 | Link to Comment slaughterer
slaughterer's picture

Is this what the ESFS is meant for?  To make emergency payments minus what is "not needed" to bondholders and banks using Greece as a funnel?  Who cannot see through this abject farce?

Wed, 05/09/2012 - 14:37 | Link to Comment ziggy59
ziggy59's picture

ESFS = Extra Stupid Financial System?

Wed, 05/09/2012 - 14:33 | Link to Comment SheepDog-One
SheepDog-One's picture

US equities immediately shriek out in pain at the mere mention the free money heroin might be delayed.

Wed, 05/09/2012 - 14:33 | Link to Comment Moneyswirth
Moneyswirth's picture

Wonder what German taxpayers are thinking right now?

Wed, 05/09/2012 - 14:32 | Link to Comment lizzy36
lizzy36's picture

One wonders whether EFSF is doing this merely to avoid being downgraded (which is coming).

Also one can imagine that this morning when the whole payment was in jeopordy that Geithner got on the phone and screamed bloody murder about "stability of entire financial system" and other crap that he has had on a "loop" in his office since the fall of 2008.  

Wed, 05/09/2012 - 14:57 | Link to Comment carbonmutant
carbonmutant's picture

THe banks can't afford a run... They need the money.

Wed, 05/09/2012 - 14:33 | Link to Comment slaughterer
slaughterer's picture

BANKSTERS FOR DUMMIES

(Greek Translation available next Monday)

Wed, 05/09/2012 - 14:34 | Link to Comment slackrabbit
slackrabbit's picture

yes you have a gun to there head.

and what if they say 'pull the trigger mofo'

Wed, 05/09/2012 - 14:35 | Link to Comment junkyardjack
junkyardjack's picture

They'll blink like John Snow

Wed, 05/09/2012 - 14:35 | Link to Comment junkyardjack
junkyardjack's picture

There's still plenty of US stocks and gold to sell to cover payments...

Wed, 05/09/2012 - 14:44 | Link to Comment SheepDog-One
SheepDog-One's picture

Sell stocks to who? I dont see a lot of retards with money out there today.

Wed, 05/09/2012 - 14:50 | Link to Comment NotApplicable
NotApplicable's picture

All it takes is one special one named Ben.

Wed, 05/09/2012 - 14:34 | Link to Comment slaughterer
slaughterer's picture

Gimme the Moody's bank downgrades already!  What are they holding off on?  Waiting for Warren B to get out of BAC and WFC?  

Wed, 05/09/2012 - 14:35 | Link to Comment RougeUnderwriter
RougeUnderwriter's picture

Ya - I wonder how ISDA will spin this upcoming DEFAULT.

"The CDS will not be honored because both parties mutually agreed that Greek would not pay debt owed....."

No way to BS this one - We ain't paying is a default!

 

 

Wed, 05/09/2012 - 14:55 | Link to Comment NotApplicable
NotApplicable's picture

Perhaps they'll just refuse to comment and keep the shades tightly drawn until everyone stops asking.

Wed, 05/09/2012 - 14:35 | Link to Comment ziggy59
ziggy59's picture

Timmy should be given a free trip to Greece and talk to people for this is part his creation, and then, what's left of him sent to Spain...

Wed, 05/09/2012 - 14:37 | Link to Comment Joe The Plumber
Joe The Plumber's picture

Holding back twenty percent for june?

Oooh scary.

EFSF are a bunch of milk toasts

Wed, 05/09/2012 - 14:37 | Link to Comment walküre
walküre's picture

Who is potentially getting shafted $435 million times on May 15th?

A bank, a pension fund? Who?

Wed, 05/09/2012 - 14:40 | Link to Comment Joe The Plumber
Joe The Plumber's picture

A northern european state pension fund.

Wed, 05/09/2012 - 14:40 | Link to Comment Village Smithy
Village Smithy's picture

As this worsens it becomes less about finance and more about personality clashes. At some point someone is going to tell the banksters to shove it. I am surprised that it has taken this long, none of the money will ever see a true Greek's hands.

Wed, 05/09/2012 - 14:39 | Link to Comment unionbroker
unionbroker's picture

bookkeeping entry, money will be credited to Greece but will end up in someone elses bank accout

Wed, 05/09/2012 - 14:55 | Link to Comment NotApplicable
NotApplicable's picture

Not bad work, if ya can get it.

Wed, 05/09/2012 - 14:42 | Link to Comment pods
pods's picture

Hillarious, so the ECB/Troika/FED is going to withhold a payment to the Greeks who will not hold it long enough to smell it before it goes back to the banks in the EU and this is supposed to threaten GREECE?!

Why does that scene in Blazing Saddles come to mind?

 

Bart: [low voice] Hold it! Next man makes a move, the nigger gets it! 
Olson Johnson: Hold it, men. He's not bluffing. 
Dr. Sam Johnson: Listen to him, men. He's just crazy enough to do it! 
Bart: [low voice] Drop it! Or I swear I'll blow this nigger's head all over this town! 
Bart: [high-pitched voice] Oh, lo'dy, lo'd, he's desp'it! Do what he sayyyy, do what he sayyyy! 
[Townspeople drop their guns. Bart jams the gun into his neck and drags himself through the crowd towards the station
Harriet Johnson: Isn't anybody going to help that poor man? 
Dr. Sam Johnson: Hush, Harriet! That's a sure way to get him killed! 
Bart: [high-pitched voice] Oooh! He'p me, he'p me! Somebody he'p me! He'p me! He'p me! He'p me! 
Bart: [low voice] Shut up! 
[Bart places his hand over his own mouth, then drags himself through the door into his office
Bart: Ooh, baby, you are so talented! 
[looks into the camera
Bart: And they are so *dumb*! 

Wed, 05/09/2012 - 15:08 | Link to Comment DCFusor
DCFusor's picture

That scene is the best metaphor going for what the banks did to *every* country's taxpayers.  Gimme money or the nigger gets it indeed.  I use it when explaining all this to the unwashed.

Wed, 05/09/2012 - 15:12 | Link to Comment stocktivity
stocktivity's picture

one of the funniest movies ever

Wed, 05/09/2012 - 15:14 | Link to Comment Uber Vandal
Uber Vandal's picture

Martin Armstrong brought this scenario up too recently:

http://www.martinarmstrong.org/files/Saving%20The%20World/index.htm

 

 

Wed, 05/09/2012 - 14:47 | Link to Comment Dr. Acula
Dr. Acula's picture

Greece should take the money and run.

 

Wed, 05/09/2012 - 14:48 | Link to Comment Mugatu
Mugatu's picture

This is not a loan.  

A loan is where both parties have duties and responsibilities - one to lend and the other to pay back.  In this case you have one party (ECB) which is not loaning money since it can arbitrarily hold back money, and the other party has no intention of ever paying it back.

They both deserve each other!

Wed, 05/09/2012 - 14:49 | Link to Comment ParaZite
ParaZite's picture

While we are all being hustled on a global scale...

I think that Greece's Jimmies are about to get rustled. 

Que the Molotov's and social upheaval in 6... 5... 4...

Wed, 05/09/2012 - 14:51 | Link to Comment Winston Churchill
Winston Churchill's picture

Rockopoulos meets hardplanceopopoulus.

Wed, 05/09/2012 - 14:52 | Link to Comment Joebloinvestor
Joebloinvestor's picture

Have they moved the gold yet?

As soon as that happens, watch the EU tell Greece to go pound sand.

Go ahead and base the Drachma on a "promise to pay"....

Might actually be worth something although a Greek promise is just a state of mind.

Wed, 05/09/2012 - 15:14 | Link to Comment The Swedish Chef
The Swedish Chef's picture

Yeah, like the new Drachma would be backed by their puny gold holdings... If that happened, you´d see that gold flying in to Soros vault so fast it would defy the laws of physics.

Wed, 05/09/2012 - 14:54 | Link to Comment FrederickTheGreat
FrederickTheGreat's picture

Greece is a storm in a teacup. New elections in June will return many voters back to pro-bailout parties. This election was just a onetime shock. Almost nobody really wants a default and the drachma back. PASOK will win and get 50 seats as a free bonus. A majority with ND will continue to implement austerity and the euro will live on.

Wed, 05/09/2012 - 15:25 | Link to Comment MrNude
MrNude's picture

The problem is you don't really fuck around with these kind of people and they already did that with the George Papandreous referendum and look at how that turned out and now this?

 

 

 

 

Wed, 05/09/2012 - 15:33 | Link to Comment FrederickTheGreat
FrederickTheGreat's picture

No matter, the new June elections will set it all straight. Euro will survive. By the time the Euro2012 football starts, this will all be forgotten.

Wed, 05/09/2012 - 15:56 | Link to Comment kanenas
kanenas's picture

Football: EURO2012 starts June 8th, with the match of Poland vs Greece

Politics: Elections will probably be the 17th of June.

Politics: It will probably take a 3 days to set up an anti-Troika government. Say, 20th of June.

Politics: And a couple more to vote for a law against Troika's guidance. Say, 22nd of June.

Football: If in First Round Greece finishes second in its group, and Germany finishes first in its group they will meet on June 22 for qualifiers. 

Wed, 05/09/2012 - 16:19 | Link to Comment FrederickTheGreat
FrederickTheGreat's picture

By then, the Greeks will have restored a pro-euro government. Predictable world we live in.

Wed, 05/09/2012 - 16:54 | Link to Comment MS7
MS7's picture

No way will  they ever vote for PASOK again. New elections will mean an increase of votes for the 2 top anti-austerity parties (people supporting the lesser austerity parties will see they have more power by voting together). Unfortunately I think the EU knows this and the pwers that be will do all they can to force a coalition with New Democracy at the helm while they still can. I don't understand why they had elections at this time, knowing the big parties would lose-- it was too much of a gift to the people. And you know what they say about Greeks and gifts.

Wed, 05/09/2012 - 14:54 | Link to Comment carbonmutant
carbonmutant's picture

The Banks need the money more than Greece.

This is just grandstanding...

Wed, 05/09/2012 - 14:59 | Link to Comment youngman
youngman's picture

WOW...this is funny...so the ECB is holding back 1 billion......but giving them 4.2 billion to a country that has elected people who have said they will not pay anything back....again....I must have missed this chapter in Econ 101....or was it business ethics class...this is getting very very funny....and I mean in a comedy way....also in a very weird way....sends shivers down my spine..

Wed, 05/09/2012 - 15:10 | Link to Comment Tenshin Headache
Tenshin Headache's picture

Oh I see! You must think that these 1's and 0's won't just be paid across to the creditors - European banks and the ECB.

Well, it will. No 1's and 0's for Greece.

Wed, 05/09/2012 - 15:03 | Link to Comment David DeGerolamo
David DeGerolamo's picture

1 billion divided by 5.2 billion = 19%. Isn't that the percentage of the bailout that actually goes to Greece instead of banks?

Wed, 05/09/2012 - 15:07 | Link to Comment Shleprock
Shleprock's picture

Can we just have a 20% correction already.  Momma needs new shoes!

Wed, 05/09/2012 - 15:15 | Link to Comment unrulian
unrulian's picture

while everyone elses mom sells theirs for food stamps

Wed, 05/09/2012 - 15:13 | Link to Comment The Swedish Chef
The Swedish Chef's picture

To friggin bad that the people in charge in Greece right now doesn´t give a flying fuck about Troika money. If the money is withheld, the Greek state collapses and they have to go back to the day jobs (day unemoloyment) they held until last week, they will be remebered as Greek heros and will stand a far better chance at a political career than those traitors in New Democracy and PASOK.

 

PASOK and the old aristocracy did care about threats, they were fat and well dressed thanks to their compliance. These new guys? I don´t think they could care less...

Wed, 05/09/2012 - 15:21 | Link to Comment ThirdWorldDude
ThirdWorldDude's picture

Tsipras has the ball now! Both Samaras and Jabba went out of the meeting with SYRIZA's leader with tears in their eyes, cursing the "young radical" for not bending his back and accepting to keep Grease on the belt-tightening track...

 

I think Tsipras is fully aware that he's got nothing to lose, because ultimately it's the creditors that will be fuk'ed if Greece doesn't make the payment next week. Just imagine if the kid is so smart to take the money on thursday and announce "bye bye Brussels" on friday! He'll send half the EU in the same hole that he's in.

 

Let's see what his spine's made of.

Wed, 05/09/2012 - 18:08 | Link to Comment konfan
konfan's picture

Its going to be a fun ride,either way. http://www.youtube.com/watch?feature=player_embedded&v=o1pjyh-Cm1M

 

Wed, 05/09/2012 - 15:22 | Link to Comment israhole
israhole's picture

When they say disbursed, they mean printed.

Wed, 05/09/2012 - 16:28 | Link to Comment FrederickTheGreat
FrederickTheGreat's picture

Greece is a storm in a teacup. This time they voted with anger in their hearts. Next election, they will vote with their clear minds. The death of the euro has been announced so many times. It will resurrect from its grave again.

Wed, 05/09/2012 - 16:32 | Link to Comment worbsid
worbsid's picture

I lived in Greece a number of years ago and I wouldn't be surprised if they didn't just say "Screw You Guys".  Spartans are real to the Greeks and so is Marathon and so was the German occupation. Jeeze, they will be back to full time Resina. yuk.

Wed, 05/09/2012 - 20:58 | Link to Comment covert
covert's picture

hire greek hookers.

http://expose2.wordpress.com

 

 

Wed, 05/09/2012 - 18:32 | Link to Comment drider
drider's picture

It is simple tactics... since Venizelos is responsible for forming a government after Tsipra's turn, the european elites just provided him with enough leverage to do so. In any case they think so!

The local media will also try to scare people (there will be no salaries/pensions etc) but I don't think it will work this time...

Thu, 05/10/2012 - 00:52 | Link to Comment WallowaMountainMan
WallowaMountainMan's picture

i thnk greece should hold out for less.

Thu, 05/10/2012 - 02:09 | Link to Comment crazyivan5-0
crazyivan5-0's picture

So here's my question...while our attention is diverted with this latest "Euro crises", who and, where are we getting the screws put to us somewhere else? Because it's a virtual certainty that that's EXACTLY what is happening! "Distract 'em with this over there so we can F%&K 'EM over here while they aren't paying attention!"

Ain't life grand!

Sun, 05/13/2012 - 23:18 | Link to Comment qiongqiong
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