German Economy Minister: "Greek Default Can't Be Ruled Out" And "We Need A Bankruptcy Procedure For Countries"

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Sun, 09/11/2011 - 12:37 | 1656403 slewie the pi-rat
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Sun, 09/11/2011 - 12:43 | 1656427 Construct
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Indeed what a joke. What is the interest rate on 1yr's? 100%? They already defaulted.

Sun, 09/11/2011 - 13:09 | 1656530 EscapeKey
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...and I thought some episodes of Lost were drawn out, but this "Greece Defaults" show is by far the most ludicriously drawn out affair, despite the inevitable conclusion being obvious to anyone who's paid more than 5 minutes of casual interest.

Sun, 09/11/2011 - 13:16 | 1656552 Construct
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capitalism without default is impossible. we desperately need to get back to something that resembles capitalism.
Sun, 09/11/2011 - 14:20 | 1656766 Hot Apple Pie
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Thanks for putting it that way. I always thought in terms of moral hazard, but not everyone understood when I'd try to explain. The notion that "Capitalism requires default as one of the outcomes" is very succinct.

Sun, 09/11/2011 - 14:36 | 1656814 Construct
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Thank you mr hot apple pie.

Sun, 09/11/2011 - 15:13 | 1656930 Spirit Of Truth
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Please don't use potentially upsetting terms like "default" or "bankruptcy" anymore. The new nomenclature is "orderly insolvency".

Thank you.


Sun, 09/11/2011 - 15:30 | 1656978 Construct
Construct's picture

Oh right I am sorry dear Europe. Please don't retribute by: Making me lose my job. Stalking me on the streets. Contacting family, friends, neighbors and tell them I am a terrorist. I was just talking about general economic theory that was understood even during Adam Smith's era. Thats all.

Sun, 09/11/2011 - 15:32 | 1656989 wisefool
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Sarc: Add Adam Smith to Construct's list of freinds on the shadow facebook. It uses the same technology as the one that gives you sweet coupons for cool stuff.

Sun, 09/11/2011 - 15:47 | 1657031 Construct
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Sun, 09/11/2011 - 20:49 | 1658098 TheFourthStooge-ing
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You're not laughing during the carefully orchestrated official nineeleven-01 tenth anniversary holiday/media event/somber celebration/marketing angle, are you? That sounds suspiciously terra-like, if not on the threshold of terrism itself.

Please register at the Fatherland Security office in your precinct.


Sun, 09/11/2011 - 13:17 | 1656555 Hephasteus
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"...and I thought some episodes of Lost were drawn out, but this "Greece Defaults" show is by far the most ludicriously drawn out affair,"

You have to enter the bank codes in every 24 hours or the island explodes.

Sun, 09/11/2011 - 13:41 | 1656622 LowProfile
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You mean every 108 minutes, soon to be every minute on the minute.

Sun, 09/11/2011 - 14:10 | 1656723 Spaceman Spiff
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Steve Liesman will probably be the smoke monster.

Sun, 09/11/2011 - 14:18 | 1656758 wisefool
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Would that make Santelli the "Echo" character? "I am not afraid of you (ivory tower keynseanism)"

"You should be"

Sun, 09/11/2011 - 20:50 | 1658100 TheFourthStooge-ing
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Greece did it for the lulz.


Sun, 09/11/2011 - 15:19 | 1656944 asteroids
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OPA! The party is just getting started! Greeks may be lazy, but they aren't stupid. Consider that they have taken all the billions offered them and would take MORE today if offered. Eventually, the math catches up with them. Take note of that lessone everyone. In the mean time the tavern is open late and the ouzo is fine.

Sun, 09/11/2011 - 16:53 | 1657227 sambro
sambro's picture

Money is not the object here.


got it?

Greece should hurry up and default then exit the "limitation of sovereignty" trap.

Sun, 09/11/2011 - 13:05 | 1656515 Waffen
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~Sigh~ So Greece fixed again?

Sun, 09/11/2011 - 13:48 | 1656631 knukles
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Me too, Slewie.
Now here's what an orderly default entails:
Greece doesn't pay on principal or interest when due.
Nobody but the politicians act surprised.
Everybody ignores the politicians.
Everybody else just goes about their business as normal.
Until further notice, the Euro remains the currency of Greece.
Internationally, fear abounds; flight to quality.
US dollar, non-US dollars rally.
Treasuries rally.
Gold and silver rally.
Stocks get throttled.
The banks have Major Big Time Shitfit Conniptions about marking to market.
The regulators tell them they can hold at book until sold or default worked out.
Fed and ECB stuff infinite amounts of reserves in system.
Some banks get runs, fold.
Can kicked.
Another day, another dollar.

Blame machine works overtime attempting to tag everything and everybody other than the real culprits that caused this Shit Eating Festival of Mankind, the politicians.  (For the central banks come under their purview....)

Q: Difference between orderly and disorderly bankruptcy/default?
A:  Amount of screaming and yelling.


Sun, 09/11/2011 - 21:24 | 1658168 TheFourthStooge-ing
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This sounds more plausible than anything put forth by the usual cohort of "experts" on CNBS. (Oddly enough, though, I'm hopeful for the accuracy of the New Year's Douggie Kass prediction of gold going under $1000 sometime this year. Should this winning-lottery-ticket-like event happen, both my Chase credit card and my HELOC will be fully transmuted into gold eagles and buffaloes.)

I can only add one thing to your analysis:

Now here's what an orderly default entails:
Greece doesn't pay on principal or interest when due.

The politicians, bankers, and bureaucrats will do anything, no matter how ridiculous, to define this event as "notadefault" in their desperation to avoid triggering a cascade of CDS fuckery.

Nobody but the politicians act surprised.



Sun, 09/11/2011 - 15:57 | 1657051 Manthong
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I really wouldn't mind being able to have a cool Greek Amstel and a hot Souvlaki for 30 Drachma in Glyfada once again. 

Sun, 09/11/2011 - 12:37 | 1656404 MS7
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So then the Greek Finance Minister was right that the rumors of default this weekend were just for game playing/ speculating? If every weekend someone predicts Greece will default, sooner or later they will be right.

Sun, 09/11/2011 - 12:41 | 1656422 agent default
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How will those socialist assclowns over there deal with the coming and inevitable tax strike all these tax hikes and incompetence will bring about?  There are limits to the patience of the people in any country you know.

Sun, 09/11/2011 - 12:45 | 1656431 LawsofPhysics
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Good question.  But more importantly, who will be delivering the power, water, and food while all these assclowns are sitting around striking?  Personally, I am long black markets.

Sun, 09/11/2011 - 12:54 | 1656466 agent default
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Nobody! Collapse Bitchez!

Sun, 09/11/2011 - 12:42 | 1656424 augmister
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The global Depression is leaving the station... and ALL will be aboard.  You won't need NOAA weather to predict the Kondratieff Winter ahead....


Sun, 09/11/2011 - 12:50 | 1656453 spiral_eyes
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Kondratieff winter, you say?

Print more gold. (I'm not joking, they will try this in the name of raising aggregate demand) 

Sun, 09/11/2011 - 12:42 | 1656425 LawsofPhysics
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Fucking halarious.  You would think that putting a bankrupcy provision in place would have been done BEFORE you invite a coutry like Greece to the party.

Sun, 09/11/2011 - 13:58 | 1656682 oogs66
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almost all sovereign debt has no real bankruptcy protection - lenders have no enforceable rights - idiotic - but that's how it is

Sun, 09/11/2011 - 15:11 | 1656925 kahunabear
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AAA rated!

Sun, 09/11/2011 - 16:06 | 1657071 Bicycle Repairman
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"Instead communitising government debt, private creditors have become more involved. We also need the possibility of an orderly bankruptcy of States."

Rules for an orderly bankruptcy proceeding ?  Just for Greece?  Just for Europe?  LOL.

Sun, 09/11/2011 - 14:04 | 1656703 WestVillageIdiot
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It reminds me of all of the housing developments I saw popping up in the early 2000s.  They would build a shitload of McMansions, putting many of them on boneheaded cul-de-sacs.  After all of these developments had been built the "planners" would start thinking about infrastructure.  Roads were an after thought as if they one day said, "oh, yeah, people drive".  I think the EZ is realizing that, "oh, yeah, some countries might have problems". 

Whatever happened to Ireland?  I can't remember the last time we got an update on Ireland.  How are they faring with their economic problems? 

Sun, 09/11/2011 - 15:52 | 1657041 Alvaro de Esteban
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At least with a more balanced budget & better GDP outlook than others, but still ugly

Sun, 09/11/2011 - 16:35 | 1657164 Ag1761
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No problems there any more, everyone has fookin left.

Sun, 09/11/2011 - 12:47 | 1656440 Ancona
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There will be hell to pay this weekend, when Asia opens and a bloodbath on Monday.

Sun, 09/11/2011 - 13:36 | 1656606 DoChenRollingBearing
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I'll be manning the computer tonight, at Battlestations!

Sun, 09/11/2011 - 14:02 | 1656696 FederalReserveB...
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I'll be manning the popcorn bowl and trying not to choke on it as I attempt to eat and laugh simultaneously.

Sun, 09/11/2011 - 14:50 | 1656865 DosZap
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DoChen,@ 13:36

Your take on the metals mkt when Asia opens this afternoon?.

This Grease(lol) crap is getting be like the story of " The Little Boy who Cried Wolf".

Sun, 09/11/2011 - 23:24 | 1658421 StychoKiller
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In that fairy tale, the wolf DOES eventually show up!

Sun, 09/11/2011 - 12:52 | 1656448 deepdish
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Another gap down tomorrow? Would do good for my SPX short :)


This bear flag will probably send the S&P down towards 1040 area (if we fall monday, otherwise we will probably get a nasty short squeeze):



And here is an interesting article:


on a theme that ZH has covered quite a bit.

Sun, 09/11/2011 - 12:53 | 1656464 cossack55
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I think the question is not "What next.", but "Which next".

Sun, 09/11/2011 - 12:54 | 1656468 kaiten
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Greece will default, the only question is when. I think they´re waiting until the new EFSF is functional, so that they can plug the holes in the banks. (with new funds available)

Sun, 09/11/2011 - 15:03 | 1656901 unununium
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Greece will stop making bond payments when it stops getting more infusions. That's when.

Sun, 09/11/2011 - 23:27 | 1658428 StychoKiller
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The ECB/IMF (etc), is busy trying to refill a collander -- sooner or later, dey arms be getting tired of pouring in liquidity only to see the Greeks lapping at all the holes.

Sun, 09/11/2011 - 12:59 | 1656485 Long-John-Silver
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I wonder if the Gold and Silver Suppression Team (GSST) will come in Sunday afternoon for market open.

I'm sure they have carte blanche presigned margin paper work needing only the date and time filled in.

Sun, 09/11/2011 - 13:21 | 1656566 WmMcK
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That reminds me -- why can't i find (hardly) anybody to accept my Carte Blanche or Pfeister Barter cards anymore? :)

Sun, 09/11/2011 - 23:28 | 1658433 StychoKiller
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Trade'em in for a "Diner's Card™!" :>D

Sun, 09/11/2011 - 13:52 | 1656664 knukles
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Hah! You betcha! No fucking way they'll let this get "out of hand" (as if it isn't already...pretend and pretense) first open of the week.  Gotta try to hold back the tsunami as best they can, so to speak.
Suppression of gold and silver, hockey stick equities....

Sun, 09/11/2011 - 14:11 | 1656726 WestVillageIdiot
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Gold is just too expensive.  Just ask anybody that doesn't own any. 

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