EURUSD Soars On Reuters Report That Greek Deal Is Reached... Which Is Same Deal As July 2011

Tyler Durden's picture

Yeah, we had the same response as our readers when we saw that freak move in the EURUSD. Apparently, despite the fact that absolutely nothing has been resolved, Reuters just ran a headline that "Euro zone reaches deal on second Greek bailout package." And that is all it took for the EURUSD headline scanning algos to surge by 60 100 pips. That there nothing substantial in it, or that this is merely a rephrasing of the actual Bailout 2 announcement from before, is irrelevant. Here is what the actual Reuters report said.

Euro zone finance ministers struck a deal early on Tuesday for a second bailout programme for Greece that will involve financing of 130 billion euros and aims to cut Greece's debts to 121 percent of GDP by 2020, EU officials said.


"The financial volume (of the Greek package) is 130 billion euros and debt-to-GDP (will be) 121 percent. Now it's down to work on the statement," one official involved in the negotiations told Reuters.


Another official confirmed that the financing would total 130 billion euros with the aim of reducing Greece's debts from around 160 percent of GDP now to 121 percent by 2020.

And from AP:

The deal - details of which were still being worked out by European finance ministers in an all-night session in Brussels - was expected to bring Greece's debt down to 120.5 percent of GDP by 2020, according to the official. That's around the maximum that the International Monetary Fund and the eurozone considered sustainable.


Some eurozone ministers had indicated before the meeting that they would not accept a deal that didn't put Greece's debt on a sustainable path. The official spoke on condition of anonymity because a formal announcement was pending.


The deal should also give the green light to a related debt relief from private investors, who are expected to take significant losses on Greek bonds they hold.

So just the little matter of the statement, aka the details, which is what has been the stumbling block for the past 6 months. And incidentally, the broad strokes of this announcement is a carbon copy of the second bailout deal reached back in the summer of 2011. In other words, there is nothing substantial to this, and is merely boilerplate. But it was good enough to fool the algos. Now the only question is how long until this latest and greatest deal concoction falls apart again, and the whole farce is repeated all over.

In other news, De Telegraaf reports that the PSI has been agreed on and will reach 75% a haircut on Greek bonds. Translation - next up we have an exchange offer, the failure to reach a voluntary threshold, CACs, and all the fun the trickles down from triggered CDS.

For those bondholders of peripheral debt, as the Greek one is now a lost cause, and will trade down even more, here is what you can expected, courtesy of William Banzai.

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maxmad's picture

Don't worry it will collapse by morning!

TruthInSunshine's picture

People should not fear Skynet.

As we can all now plainly witness, even semi-intelligent humans will have a huge advantage over the machines in terms of lag time when responding to real world events.

Maybe the inherent flaw in Skynet is that it vastly underrates the ability of humans, and especially politicians and economists, to engage in prolific bullshit.

I wonder if Skynet has been able to cull any reality from January's NFP report as provided by the Bureau of Lis & Bullshit.

I think the winning trade that's been in front of our eyes all along is to fade Skynet.

flacon's picture

It should be summed up as, instead of Heads I win, tails you loose - Gold, I win. Gold, you loose. 2% inflation - come suck my nuggets!

I think I need to buy a gun's picture

gold is up one dollar in us terms on the NEWS!!!!! Someone has left the gold computer the last week its flatlining.......We are on AUTOPILOT Bitchez!!!!! Get your parachutes ready

Mr Lennon Hendrix's picture

Gold has op/ex to deal with next week, and the fact that the bailout rumors will be refuted, they haven't even had the damn press conference yet.

In other news, Trichet looks pretty cool in a Teddy Boy.

Love me tender, love me true

That's his theme song.  Tender.  Get it? 

flacon's picture

From AP: > The deal - details of which were still being worked out by European finance ministers in an all-night session in Brussels


How can it be a "deal" if the details haven't yet been worked out? Oh, it's one of those kinds of "deals". I getcha. No hand-shake, but a hand-shake promising to hand-shake on the "deal" once it is worked out. Great photo-op of the hand-shake of the promise to shake hands. Got it?! 


ONE MONTH TO MARCH 20TH.... tick, tock.... 

trav7777's picture

it'll be like those gov't shutdown budget deals that Dole and Gingrinch ironed out with clitton only to hear Al gore on the radio on during their drive back up Penn denying the whole thing.

Greece will reneg on a deal as soon as they agree to one...they are GREEKS.  They are NOT in the business of honesty or trying to actually work.

slewie the pi-rat's picture


it's nessie!

i see nessie!

TruthInSunshine's picture

Well, despite all the naysayers, The Associated Press, that bastion of fine journalistic reporting and parsing of detail, is reporting that this is a done deal, and even that Greece received "$172 billion in extra bailout loans."


Provisional Deal for $172 Billion Bailout for Greece By THE ASSOCIATED PRESS 1 minute ago

The countries that use the euro reached an agreement early Tuesday to hand Greece $172 billion in extra bailout loans, a European Union diplomat said.


Bullshit!...errr.....I meant....Bullish!

Mr Lennon Hendrix's picture

Look, I'm a robot!  I'm a row-bot!  Row-bot....row-bot.....

JPM Hater001's picture

"Don't worry it will collapse by morning!"

Um, no, this will bleed and fester for a good week before we see the real consequences.

Buck Johnson's picture

Oh I agree with you, this will most definitely collapse by morning or the latest afternoon.  Because nothing in this for one is different from what was pushed last summer.  And two, you can bet your last dollar that a big chunk of the debt holders won't go for this bond reduction.  They have a board and investors to think about for one and how can they go back to their fund and say they did good corporate work when they paid for insurance on the bond and they didn't take it because???????  They didn't take it because they where warned that they would get nothing which is a lie unless AIG and the other financial firms who sold insurance to these bonds (most from the US) are insolvent.  They never said that or will say that because that  would put in danger almost all bonds on this planet that these companies insured, they just hinted.


Zero Govt's picture

This Greek barge is sunk

..the Eurocrats are still re-arranging the deckchairs and, stiff upper lip, the band of civil servants plays on like all will be well

..the jobless (worthless) in Brussels and Strasbourg should over-take and out-strip Greek 'austerity' (lay-offs of lay-abouts) in the not too distant future.. crying shame that

FlyoverCountrySchmuck's picture

Tweet from minutes ago that 'Private Debt Holders' will be "Asked" to take a 53% haircut on holdings.

I cannot see that happening, at all.

EDIT: More from CNBC


"Private sector holders of Greek debt are expected to take losses of up to 53.5 percent on the nominal value of their bonds as part of a debt exchange that will reduce Greece's debts by around 100 billion euros.

 Previously they were expected to take a 50 percent nominal writedown, which equated to around a 70 percent loss on the net present value of the bonds.

 The debt swap will be financed in part via "sweeteners" that will be paid to the private bondholders, who will also get 30-year bonds in exchange for the bonds they give up."


Someone explain to me HOW this does not trigger a 'Credit Event'?


Apparently it doesn't trigger a credit event because they say it doesn't....pretty simple really.  

JPM Hater001's picture

Looks like I picked the wrong week to quit Qualudes.

TruthInSunshine's picture

It looks like a lot of 'investors' picked the wrong week to swim naked.

spastic_colon's picture

No credit event because it was "voluntary"

Kiwi Pete's picture

This must collapse the whole CDS market. Who will pay good money to buy an insurance product that doesn't pay out when the product it is supposed to be covering fails?

It's like if I buy fire insurance on my house which burns to the ground and the insurance company saying it is still actually there so not claimable. Or, hey, the doorpost is still there so not totally destroyed. What sort of bizzaro world is this? I feel like I'm taking crazy pills.


Vince Clortho's picture

Hey, if nobody calls the bluff, we can all pretend it's real!

ISEEIT's picture

No insult intended, but in this "radical free market", This fundamentalist "capitalist system", These wanna be gangsters just do as they like. Law be damned.

It isn't about the law today you see. It is about the "transformation" of law as we react to the "changing environment".

It is a criminal gang.

What else did you expect?

The 'free' market has failed my ass. These sick mobsters ought to be made into hotdogs and sold at OWS protest.

MinnesotaMD's picture

This is the antithesis of free market. How are you defining "free market"? Central governing authority CYA=free market?


This time it is different.....until the next time. 

Eireann go Brach's picture

On a scale of world priorities, keeping Obama away from a 2nd term in office still dwarfs everything else including Greece!

amadeusb4's picture

I'm sure Mittens will do a splendid job of keeping teh gays from marrying and slashing taxes on magical uderwear.

longdong silver's picture

this is bullish Silver...

At least till NY open

SAT 800's picture

With regard to the FX chart; shortcovering anyone? No?, how about tennis.

Douglasnew's picture

Central Banks can continue their policies to keep the Status Quo for only so long. The rubber meets the road with food and oil prices worldwide. Bernanke and his ECB counterparts know that the policy of QE and rewarding the same players that caused this mess and propping up Stocks does not help the average person that doesn't own much of these assets. Serious erosion in standards of living in the Western economies will spell the same social ills we are seeing in Greece. Just because they make a deal to keep the Status Quo happy will not quiet the masses. The middle class is being gutted. Every dog will have his day.

AC_Doctor's picture

Fucking Ground Hog Day again!

JW n FL's picture



aint that thr truth!

Desert Irish's picture

I'm sick and tired of popcorn - default now bitchez!!!

JPM Hater001's picture

You should study tantric sex...the wife will thank you. This is nothing more than tantric sexual economics.

Waffen's picture

Can one perform tantric sex after having zionists convince pediatricians to hack and slash our penisis?  Yes I am angry that my wang was cut without my say in the matter.

JPM Hater001's picture

Let's be honest... You are more bothered by the prospect you lost length...alas it was never there.

Waffen's picture

No I am far more concenred about losing 90% of my natural sensitivity.

Hugo Chavez's picture

Oh god what a freak.

Cut wangs are much better looking and preferred by women rather than a smegma filled sausage casing. Nasty.

Waffen's picture

Oh god what a freak.

Cut labia and clitorus are much better lookign and preferred by men rathern then protruding, unsightly skin folds. Nasty.



Women throughout history seemed to do just fine with smegma filled sausage casings(do you bathe?) BTW you might want to inquire with your European cousins as to if they have such issues?

btw Canada Australia and New Zealand recently banned circumcision(for non medical reasons) and Eruope has steadly held an under 5% circumcision rate.

Cutting off parts of peoples bodies without their consent is wrong.

MinnesotaMD's picture

Penile bowenoid cancer rate, and juvenile Urinary tract infection rates are higher in uncircumcised males. And you are breaking covenant with God.

Waffen's picture

well in that case, cut kids penisis, despite the fact that close to 200 children die from botched circumcisions a year.

lots of women die from breast cancer, why dont we just remove all the breast tissue from new born girls? breast milk is passe anyhow we still have formula, so they really arent needed.

MinnesotaMD's picture

Say that again, I got lost staring at your icon.

FeralSerf's picture

Have you inquired about the possiblilty of a skin graft?


MinnesotaMD's picture

People stretch the skin. Grafting unlikely to be functional due to restrictive scarring. Ask John Bilbo Bobbit, someone stole his precious.

grunk's picture

They say our love won't pay the Krauts,

Before it's earned the money's gone to bailouts.

I guess that's so, Goldman's running the show,

But at least I got a piece of concrete to throw.

Babe. I got you, Babe. I got you Babe.