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EURUSD Tumbles On Rumor Of Papademos Resignation, Eurogroup Meeting Delay

Tyler Durden's picture




 

EURUSD longs just got punk'd again, with the EURUSD surging to over 1.32 on the fake BLS number (1.2 million labor force decline, whatever, with ), when it collapsed by 100 pips as the news we tweeted earlier that Greek PM Papademos may resign today throwing the entire Greek bailout out of the window, if his talks for further austerity fail. From Kathimerini: "Papademos is expected to meet PASOK’s George Papandreou, New Democracy’s Antonis Samaras and Giorgos Karatzaferis of the Popular Orthodox Rally (LAOS) on Saturday. The three politicians will have to agree on measures that will satisfy Greece’s lenders and pave the way for a new bailout.  Sources told Kathimerini that the troika is demanding that the minimum wage of 751 euros per month (gross) be reduced and that labor costs in the private sector drop by 25 percent in a bid to help Greece regain competitiveness. Skai TV and radio reported on Friday that should the leaders fail to agree a deal, he will tender his resignation on Monday." And just to make the confusion complete, Jean Claude Juncker just announced there would be no Eurogroup meeting on February 6. So while the market is celebrating the rotation of banker jobs with minimum wage jobs, Greece may be on the verge of blowing up Europe.

 

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Fri, 02/03/2012 - 10:04 | 2122849 VanillAnalyst
VanillAnalyst's picture

interesting political strategy... agree with me or I quit... let's see how this plays out, what with how reasonable these people seem to be

Fri, 02/03/2012 - 10:08 | 2122865 Jefferson
Jefferson's picture

Or agree with me, lose your job in April and watch your back. Tough choice.

Fri, 02/03/2012 - 11:14 | 2123148 Nobody special
Nobody special's picture

The problem with a resignation is that a talking head will replace him. It will be a non-representative talking head that sells out Greece instead of fighting. Gpap has a responsibility to navigate Greece through the exit from the Eurozone. A resignation now would be like the cruise captain that abandoned the sinking ship.

The Eurozone has failed in its primary purpose of building a stronger Europe. Had member nations known their Europroject would have led to what we see today, the Eurozone would contain zero members. More should be looking at their true motivation to remain. They should ask if the Eurozone delivers what was promised, and when the NO becomes clear, they too should exit.

Fri, 02/03/2012 - 11:32 | 2123228 Popo
Popo's picture

Goldman Sachs already has his replacement waiting in the wings.   Things will go much more easily for the bankers once they have a banker zombie running the government.

Fri, 02/03/2012 - 11:58 | 2123327 Doña K
Doña K's picture

the troika is demanding that the minimum wage of 751 euros per month (gross) be reduced and that labor costs in the private sector drop by 25 percent in a bid to help Greece regain competitiveness.

Well! If they default and bring back a devalued drachma, Troika will get the competativeness is looking for without hurting the working people, as pricing for consumables will get realligned.

Exports will grow, tourism will thrive, (BTW: most of tourism income is under the table) and internal exchange of goods will follow the supply and demand mechanism which nevel lies.

GO GREEKS give Troika the finger

Better yet, why don't you abolish taxes and turn Greece into a tax heaven vacation spot. YOU WILL THRIVE

Fri, 02/03/2012 - 12:13 | 2123457 The Reich
The Reich's picture

Right, but in the meantime all Greeks banks and all pension fonds went bankrupt and their debts will still be valuated in Euro. Would you give your money for Greek Drachma bonds then?

 

Have a nice day.

Fri, 02/03/2012 - 14:01 | 2123944 Doña K
Doña K's picture

Even still. They will be in better position. In default the Greek banks also hold 7 billion USD in CDS, thus making a ton of money, if they can collect of course.

Fri, 02/03/2012 - 16:08 | 2124457 spartan speculation
spartan speculation's picture

yes greek drachma bonds will still be backed by gold that greece still owns. greece leaving the euro will be like the 1st people of the sinking ship. the rest of the pii(g)s will be fighting for the next boat off. 

Fri, 02/03/2012 - 12:06 | 2123394 CrashisOptimistic
CrashisOptimistic's picture

No.  No. No and no.

There is ZERO motivation for Greece to leave the EU.

Printing drachmas Does Not Help Them.  The debt cannot be changed from Euros to Drachmas.  No bank will agree to that, certainly not the ECB and IMF.  And no, they can't do it unilaterally.  That's default, and banks don't have to agree to default, either.  They can carry that paper on the books forever and confiscate assets as they leave Greece.

There is no mechanism for ejecting a country from the EU and no mechanism for voluntary departure.  It would have to be added to the treaty language and a unanimous vote taken of member countries.  It Won't Happen.

And lastly, no oil producer will sell oil for drachmas.  Greece imports and burns 400,000 barrels a day of $110 Brent priced oil.  Do your own calculation.  This is 5% of GDP per year drained from the country, for oil to carry food in trucks to grocery stores.  There is no fix for this.

 

Fri, 02/03/2012 - 13:10 | 2123682 trilliontroll
trilliontroll's picture
The Stamp Act

British Parliament - 1765

"... that provision be made for raising a further revenue within your Majesty’s dominions in America, ...

we, your Majesty’s most dutiful and loyal subjects, the commons of Great Britain in parliament assembled, have therefore resolved to give and grant unto your Majesty the several rates and duties herein after mentioned;...

...that it may be enacted, and be it enacted by the King’s most excellent majesty, by and with the advice and consent of the lords spiritual and temporal, ...

That from and after the first day of November, one thousand seven hundred and sixty five, there shall be raised, levied, collected, and paid unto his Majesty, his heirs, and successors, throughout the colonies and plantations in America which now are, or hereafter may be, under the dominion of his Majesty, his heirs and successors,

...

For every skin or piece of vellum or parchment, or sheet or piece of paper, ...

a stamp duty of ten shillings. ...

XIV. And be it further enacted by the authority aforesaid, That the said commissioners, and all officers to be employed or entrusted by or under them as aforesaid, shall, from time to time, in and for the better execution of their several places and trusts, observe such rules, methods, and orders, as they respectively shall, from time to time, receive from the high treasurer of Great Britain, or the commissioners of the treasury, or any three or more of such commissioners for the time being; and that the said commissioners for managing the stamp duties shall take especial care, that the several parts of the said colonies and plantations shall, from time to time, be sufficiently furnished with vellum, parchment, and paper, stamped or marked with the said respective duties. ... "

 

Fri, 02/03/2012 - 16:05 | 2124439 spartan speculation
spartan speculation's picture

i believe it is papademos who is gonna resign and he is that represtative talking head that was put in place to sell out greece. Gpap remember was gonna put up a referendum on greece being in the euro so they told him to step aside .

 

Fri, 02/03/2012 - 12:01 | 2123382 Clayton Bigsby
Clayton Bigsby's picture

Wow, look at that chart - talk about gettin ur nuts blown off...

Fri, 02/03/2012 - 10:04 | 2122852 battle axe
battle axe's picture

KABOOM!!!!

Fri, 02/03/2012 - 10:08 | 2122854 falak pema
falak pema's picture

Papademos becomes Papatoppleos...Merkel gets her third scalp of sheeple renegade. Juncker junks the Greeks and slam dunks the boa constrictor squeeze.

How to extract the last drop of blood from a flogged to death horse. Pathetic pantomine if it weren't ominous sign of the times.

Fri, 02/03/2012 - 10:05 | 2122858 The 100 Trillio...
The 100 Trillion Dollar Man's picture

Perhaps he should call a referendum?

Fri, 02/03/2012 - 10:10 | 2122859 Manthong
Manthong's picture

What's the new guys name?

Von Oompapa?

 

Fri, 02/03/2012 - 10:07 | 2122869 SheepDog-One
SheepDog-One's picture

Thus the reason for the 'blowout' jobs numbers....counteract it and we're at scratch.

Fri, 02/03/2012 - 10:08 | 2122872 Peter K
Peter K's picture

I wonder if the FED has a USD "get the F**K back in the toilet" team to go with their bond plunge protection team?

 

 

Fri, 02/03/2012 - 10:08 | 2122874 dcb
dcb's picture

sorry but dumb initial statement, unless the euro it a fresh low overnight I am still up on my longs for over the past month, my short postion I have put in again as the macd histocgram said time to sell.  what's the big deal. of note I did post yesterday about the macd and a sell signal

Fri, 02/03/2012 - 10:09 | 2122881 LookingWithAmazement
LookingWithAmazement's picture

More and more new jobs. Bye bye crisis. #ObamaLandslide2012.

Fri, 02/03/2012 - 10:15 | 2122911 falak pema
falak pema's picture

A landslide can be a crisis if it hides the face of progress. Where is progress? And are we in progression or regression? 

Amazement is feigned if its looking the other way. Sand castles only last a certain time. Until the tide turns. 

Fri, 02/03/2012 - 11:29 | 2123218 Calmyourself
Calmyourself's picture

You know the lies and propaganda have a way of catching up with demogogues..  Ask goebbels he'll tell ya.. 

Fri, 02/03/2012 - 10:10 | 2122883 chubbar
chubbar's picture

How fast will the BIS install a technocrat (AKA banker) to replace him? Can't have any debt slaves wandering off the reservation.

Fri, 02/03/2012 - 10:10 | 2122885 SheepDog-One
SheepDog-One's picture

Theyre just lying best they can till the whole thing collapses like a souffle one morning.

Fri, 02/03/2012 - 10:11 | 2122889 SeverinSlade
SeverinSlade's picture

Don't worry ZH readers...A European recession won't harm the US economy...MSM said so!  Surely the death spiral of the Euro won't either!

Fri, 02/03/2012 - 10:13 | 2122902 hungarianboy
hungarianboy's picture

We'll be back with our longs. :-) Still I swear ZH shorts had the sweat on their hands....

we'll never get to 1.2900, just watch.

Fri, 02/03/2012 - 10:17 | 2122925 EmileLargo
EmileLargo's picture

The Germans will turn the Euro into toilet paper to keep this ridiculous arrangement going. Astonishing.

Fri, 02/03/2012 - 10:22 | 2122954 youngman
youngman's picture

ZeroHedge was just announced by Rick Santeli again....go tyler go...

 

But back to Greece...I would resign too...keeps your head attached to your shoulders in the future..

Fri, 02/03/2012 - 10:26 | 2122987 slewie the pi-rat
slewie the pi-rat's picture

chaaarrrt aboouuuwwwt FACE!

is thie the same G-pap and samaras who were college roomates, one being the recently-former-also-resigned PM, predecesser of papa-D? 

dammit, papa-D!  it's sammi's turn, now!  L0L!!!

i can also see why the junkster cancelled the meeting:  sarko and the merk won't be back from the stuporBowl in time

 

Fri, 02/03/2012 - 10:36 | 2123024 Sandy15
Sandy15's picture

This was the effects of the NY Fed destroying the dollar to push the market up on fake employment numbers........

Fri, 02/03/2012 - 11:23 | 2123196 CreativeDestructor
CreativeDestructor's picture

LTRO - Long Term Rectal Ordeal

Fri, 02/03/2012 - 13:24 | 2123770 Cpl Hicks
Cpl Hicks's picture

IT'S GROUNDHOG DAY!

Fri, 02/03/2012 - 13:25 | 2123776 Cpl Hicks
Cpl Hicks's picture

IT'S GROUNDHOG DAY!

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