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Germany, Greece Quietly Prepare For "Plan D"

Tyler Durden's picture


For several weeks now we have been warning that while the conventional wisdom is that Europe will never let Greece slide into default, Germany has been quietly preparing for just that. This culminated on Friday when the schism between Merkel, who is of the persuasion that Greece should remain in the Eurozone, and her Finmin, Wolfgang "Dr. Strangle Schauble" Schauble, who isn't, made Goldman Sachs itself observe that there is: "Growing dissent between Chancellor Merkel and finance minister Schäuble regarding Greece." We now learn, courtesy of the Telegraph's Bruno Waterfield, that Germany is far deeper in Greece insolvency preparations than conventional wisdom thought possible (if not Zero Hedge, where we have been actively warning for over two weeks that Germany is perfectly eager and ready to roll the dice on a Greek default). Yet it is not only Germany that is getting ready for the inevitable. So is Greece.

From the Telegraph: "The German finance ministry is actively pushing for Greece to declare itself bankrupt and to agree a "haircut" on the bulk of its debts held by banks, a move that would be classed as a default by financial markets.Eurozone finance ministers meet on Monday to approve the next tranche of loans from the EU and the International Monetary Fund, designed to stave off national bankruptcy while the new Greek government puts the country's finances in order. But the severe austerity measures being demanded have caused such fury in Greece, and the cuts required are so deep, that Wolfgang Schäuble, the German finance minister, does not believe that any government would be able to implement them." Funny - it is as if Schauble almost knows that any self-respecting country would tell Germany to go to hell. Then again, this is Greece, whose puppet government is one which only answers to banker demands. And we hardly have to remind readers that of every dollar in bailout cash, Greece only sees 19 cents of it. Then again this is Greece, which is full of sound and fury for a day or two, then is happy to pick up the bar of vaseline for the next 6 months until the cycle repeats anew.


"The idea instead is that the Greek government should officially declare itself bankrupt and begin negotiating an even bigger cut with its creditors. For Schäuble, it is more a question of when, not if."


The German finance minister's comments are certain to plunge the authorities in Athens into even deeper gloom. On Saturday they tried to sound optimistic, with a cabinet meeting to thrash out the final details of an austerity package.


The cuts, including a reduction in the minimum wage, mass redundancies within the public sector, and a slashing of the health and defence budgets, sparked rage on the streets of Athens last week, with buildings set on fire amid angry protests.


But the country's politicians are resolutely trying to sound upbeat. "The Greek people have done everything they can and we are determined to make good on our commitments," said Christos Papoutsis, public order minister.

Adding insult to injury...

With Greek morale at rock bottom, the national mood darkened yet further after armed thieves looted a museum on Friday in Olympia, birthplace of the Olympic Games, and stole bronze and pottery artefacts - just weeks after the country's National Gallery was burgled.


One Greek newspaper suggested the state could no longer properly look after the nation's immense cultural heritage. "The Greek state has gone bankrupt, let's face it," the conservative daily Kathimerini said in an editorial.


"If the state cannot guard the country's great cultural heritage for financial or other reasons it must find other ways to do it."


Mr Schäuble's pessimism will not be welcomed in Athens. The hugely influential German politician's doubts have been growing for several weeks, and prompted angry exchanges when Greece accused Germany of trying to drive it out of the euro.


His scepticism is not yet fully shared by Angela Merkel, who is said still to be determined to prevent Greece's financial collapse. "She thinks Greece going bust could cause a shock wave that buries other countries - with Spain and Italy among them. It could break apart the entire monetary union," said an official.


But it has support from Austria and Finland - holding the prospect that a eurozone meeting tomorrow will fail to agree the next set of EU-IMF payments for Greece.

And lest it be assumed that only Germany is preparing for the inevitable, here is the FT on Greece's own preparation for "Plan D":

On Friday afternoon, Constantine Michalos, president of the Athens chamber of commerce, sat in his office – around the corner from where protesters were hurling chunks of marble at riot police – and contemplated what was once unthinkable: that Greece would default on its debt and then be forced into a messy exit from the euro.


“All hell would break loose,” Mr Michalos said, sketching a society that would quickly run short of fuel, food, medicine and necessities. “You would have social upheaval.”


This week, that assumption was questioned as never before. Some officials in the Netherlands, Germany and Finland – three of the eurozone’s four remaining triple A governments – now argue that the blowback from a Greek default might not be so debilitating, after all.


“I am not advocating a Greek default, hard or soft – but I’m not excluding the possibility of it if the Greeks don’t get their acts together,” Alexander Stubb, Finland’s Europe minister, told the Financial Times.


“Europe is prepared. A hell of a lot better prepared than it was on May 9 2010 – and a hell of a lot better prepared than it was last year, so I think we’ve taken the necessary measures.”

And while anyone who is vaguely familiar with rapo banking understands that Greek bonds have been repoed in an infinitely long rehypo chain starting with purchases in the open market, and ending with the ECB, in the process leaving tens of Prime Brokers open for loss exposure, and thus a Greek default would lead to massive impairments, there are those who still think that a Greek default is manageable. It isn't.

Platon Monokroussos, research head at Eurobank EFG, believes a Greek default might even cascade into a full-blown EU exit, because government would probably try to impose capital controls, close borders and take measures that violated EU law.


Greece’s mainstream politicians appear aware of this. Lucas Papademos, the prime minister, warned MPs that the country faced “catastrophe” if it did not approve a sweeping austerity package tied to the loan.

Many in Greece realize this. But ever more dont care any more and just want out.

There is a minority – particularly on the far left – that wants out. Their chief argument, endorsed by some well-known foreign economists, is that a devalued drachma would lower wages and instantly make Greece more competitive.


They tend to point to Argentina, which broke its peg with the dollar more than a decade ago, defaulted on its foreign debt and has since fared far better than many expected.


Yet that comparison overlooks the fact that the Greek economy – unlike Argentina’s – boasts a small production base and few exporters. Most of its companies rely on imports, which would rocket in cost. Sceptical, too, are ordinary citizens. “We are not Argentina,” Mr Stournaras said. “We are not even self-sufficient in agriculture.”

Perhaps there is a reason that whatever happens on Monday will be when the US market is closed - the last thing needed is for the US momentum accentuating HFT algos, who are all that is left of the market, to take whatever trend develops, and run away with it. Or perhaps that is precisely why Europe decided to go ahead with a decision precisely on a day when the US market is closed.

Our personal sentiment is that nothing has changed: the only question on Tuesday will be when the next "drop dead" summit/meeting/shindig will be. And at what point will Greece's fate again not be sealed. Because if Reuters is correct in suggesting that someone, somewhere thinks that that the Greek exchange offer can be consummated in 3 calendar days, or one work day as the 10th and 11th are Saturday and Sunday, then the farce is already long over.


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Sat, 02/18/2012 - 21:09 | 2174022 Atomizer
Atomizer's picture

Q: If Greece bails out of EU, the Euro should rise. With the currency swap tied into euro... Dow should rise for election votes. Is this shady Kenyan Obamanomics plot correct?

Sat, 02/18/2012 - 21:12 | 2174029 ekm
ekm's picture

Conceptually agree. One addition though.

Every president has waged a new war, except for Carter (enter your opinion here..............)

Without a new war, this one can't win, in my opinion. Have you heard of Iran?

Sat, 02/18/2012 - 21:19 | 2174040 Atomizer
Atomizer's picture

Yes. Burn down another countries infrastructure to create new employment opportunism. {Check} ;>)

Sat, 02/18/2012 - 21:26 | 2174052 ekm
ekm's picture


By the way, how come nobody talks about employment in the military industry? How many are employed? Anybody has any clue?

What happens when 1 million bombs are manufactured and warehoused? This is over production. Get me?

They have to be used otherwise people will become unemployed.

If everything is seen with the eyes of FINANCE and PROFIT, everything makes sense, even wars.

Sat, 02/18/2012 - 21:43 | 2174074 Ahmeexnal
Ahmeexnal's picture

It makes sense Greece was raped and plundered by the francogerman Military Industrial Complex.

Frau M:  Let's give those greeks a platinum credit card.

Sarky:  But they can only use it to buy products from our MIC.

Frau M: Obsolete submarines!

Sarky: Obsolete attack helicopters!

Frau M: Overpriced automobiles!

Sarky: Do you think they'll fall for it?

Frau M: Let them think they're rich, and the rest will follow....

Sat, 02/18/2012 - 21:46 | 2174081 ekm
ekm's picture

Your style of fun is that of a comedian.

Sat, 02/18/2012 - 21:52 | 2174084 ekm
ekm's picture


Why would Canda and others buy German Tanks?

Sat, 02/18/2012 - 21:56 | 2174089 Ahmeexnal
Ahmeexnal's picture

Thanks for the informative link.

Seems like the francogerman MIC is busy selling not only to the greeks.

You don't buy this stuff to have it sit and rot or to show off in military parades.

This is proof there will be war in europe. Again.

Sat, 02/18/2012 - 21:58 | 2174094 ekm
ekm's picture

You may or may not be correct. That is one interpretation.

Another one is, just to create fake employment, as Bastiat and Henry Hasslit explain.

Sun, 02/19/2012 - 03:23 | 2174445 Nobody For President
Nobody For President's picture

But it will be a FAIR war - the Greeks and Turks get to fight it out with equivalent German tanks! What a deal!

I'm thinkin' Mad Magazine is writing some of this script.

Sat, 02/18/2012 - 22:27 | 2174138 ekm
ekm's picture

I digress just a little bit. It seems that canadian military used them in afghanistan and it protected a lot of lives.

Whereas the german soldiers were too brave drinking and eating.

Sat, 02/18/2012 - 22:37 | 2174163 Ahmeexnal
Ahmeexnal's picture

If the soldiers are the ones in best shape, what can you expect from the rest of the sheeple?

Ah...yes. The Koln carnival


Drink little sheeple. Party and drink and be merry.


Sat, 02/18/2012 - 22:36 | 2174168 ekm
ekm's picture

Like in the ancient Rome, BREAD AND CIRCUS.

Sat, 02/18/2012 - 21:12 | 2174030 wiser
wiser's picture

what a load of crap..... why do they install Troika supervisors in every ministry then

Sat, 02/18/2012 - 21:14 | 2174033 monopoly
monopoly's picture

And the people only get .19 cents on the dollar. Do they know that? Do they understand that this will not be enough. It will  not work. It will just keep the banks solvent a while longer as the people of Greece become poorer and more desperate. 

It can't work. Why do any of them think it can. I like plan D. Long term the people of Greece will get their country back. 

Sat, 02/18/2012 - 21:20 | 2174042 jmcadg
jmcadg's picture

rapo banking - genius typo error

Sat, 02/18/2012 - 21:38 | 2174064 monopoly
monopoly's picture

This is the English version of a Greek newspaper. I just posted a comment. Talk to the people of Greece. Appears many in Europe are marching for the Greek people today, not for the banks.




Sat, 02/18/2012 - 21:58 | 2174095 Conman
Conman's picture

I take it you are Greek? Can you explain why you all let a banker you did not elect run your country? At least we elect the dufuses that screw us. thx.

Sat, 02/18/2012 - 22:13 | 2174127 ekm
ekm's picture

It is actually the best greek newspaper, in my opinion (I'm not greek).

However, as a mediterranean I can answer the question:

GS, MS, BAC, JPM, C that have issued 90% of derivatives, can easily create "money" via CDSs that can wipe out small countries financial systems with HFT speed.

Add to this our propensity to EASY LIFE and the picture is clear.



I'm sure nobody has any desire to talk about north american ......women (so to say)


Sat, 02/18/2012 - 22:46 | 2174185 americanspirit
americanspirit's picture

You tell 'em ekm - you rock!

Sat, 02/18/2012 - 22:51 | 2174193 ekm
ekm's picture

Thank you, sir.

In north america, whenever you start speaking seriously with an woman, the first thing she pulls up is the CHARTER OF EQUAL RIGHTS. Equal what...........?

Sun, 02/19/2012 - 00:34 | 2174315 hardcleareye
hardcleareye's picture

So do your knuckles drag on the ground when you walk or just your dick?

Sat, 02/18/2012 - 22:51 | 2174192 Hulk
Hulk's picture

Those Mediterranean women are beautiful and we do have some beuts in NA too!

Sat, 02/18/2012 - 22:54 | 2174197 ekm
ekm's picture

Ok, 300 million americans, 35 millions canadians, "some" is the clue word.

Sat, 02/18/2012 - 21:59 | 2174096 Cursive
Cursive's picture

“Europe is prepared. A hell of a lot better prepared than it was on May 9 2010 – and a hell of a lot better prepared than it was last year, so I think we’ve taken the necessary measures.”


Lulz-fucking-lulz.  Thanks for that laugh, Financial Times!

Sat, 02/18/2012 - 22:24 | 2174148 Jim in MN
Jim in MN's picture

To paraphrase:  'I am fully prepared for my open heart surgery to be conducted by a drunken carpenter with rusty tools.'

Sat, 02/18/2012 - 22:00 | 2174100 Joebloinvestor
Joebloinvestor's picture


Another week blows by, but at least they aren't declaring "deadlines" anymore.

The Greeks sound like some of the "wishware" from the 80's.

That being getting their tax act together.

Sat, 02/18/2012 - 22:08 | 2174114 Atomizer
Atomizer's picture

The Lisbon Treaty has had so many modifications since first passed. Look at the most recent demands. It appears this is about filling a empty budget over an unfunded Energy plan. | 12/7/2011

Sat, 02/18/2012 - 22:35 | 2174165 ekm
ekm's picture

Just a correction:

It never passed.

Sat, 02/18/2012 - 22:11 | 2174122 Die Weiße Rose
Die Weiße Rose's picture

Greece is about 350 billion euros in debt -

A forgiveness deal could let the country off the hook for 100 billion euros worth of that total

But is such a scheme possible on a voluntary basis?

Deutsche Welle:

Greek debt reduction looms - one way or another,,15750433,00.html


Sat, 02/18/2012 - 22:26 | 2174152 ekm
ekm's picture

Schönen Dank for reminding me of Deutsche Welle. I used to follow it a lot few years ago.

Sat, 02/18/2012 - 22:16 | 2174133 pmm009
pmm009's picture

NBG is up nearly 200% in the past weeks?????   Anyone, other than GS know what their CDS positions look like??  I cannot see how default and return to the Drak helps them, so is there some type of CDS windfall coming their way or is the bet that private bond holders get paid out dollar for dollarl?

Sat, 02/18/2012 - 22:22 | 2174140 Jim in MN
Jim in MN's picture

And let's not forget that Greece will run out of gasoline soon with or without a default as Iran was becoming their only willing supplier on credit, but the tankers won't load in Iran any longer as insurance is not available due to the international sanctions.

Watch Hellenic Petroleum for the refinery action...talking a brave game so far.

Sat, 02/18/2012 - 22:41 | 2174177 ekm
ekm's picture

I doubt it. Greece is a NATO member. Energy supply is part of military cooperation. There are other refineries in Europe.

Sat, 02/18/2012 - 23:27 | 2174236 Jim in MN
Jim in MN's picture

Oh of course...what's $10 million per day among friends?  $300 million per month....$1 billion every 90 days....

Sat, 02/18/2012 - 23:44 | 2174247 ekm
ekm's picture

I see your point and it makes sense. But when you give to Iran, S. Arabia, China, Russia pieces of green paper or electronic numbers in exchange for goods, it seems to be a good deal (as long as it lasts of course).

Sat, 02/18/2012 - 22:27 | 2174155 Bansters-in-my-...
Bansters-in-my- feces's picture

GO long vasaline.

Sun, 02/19/2012 - 00:02 | 2174277 Ungaro
Ungaro's picture

Who needs "vasaline" when greece is so cheap?

Sat, 02/18/2012 - 22:29 | 2174157 Bear
Bear's picture

Plan "D" = More drachmas in my future

Sat, 02/18/2012 - 22:33 | 2174160 ekm
ekm's picture,,15742650,00.html

Here you are. This explains Germany for anybody out there.

Exports, exports, exports. There is no conceptual difference between the economies of Germany, China, Japan, Netherlands.

Just  EXPORTS, EXPORTS, EXPORTS and.........................NO SPENDING.

Sat, 02/18/2012 - 22:48 | 2174188 ekm
ekm's picture

Quote from the article:

The established trade partners "remain the same," Pfeiffer says. Berlin's European neighbors France, the Netherlands, Italy and the UK are the biggest recipients of German exports. Another big market is the US, followed by the emerging economies of Brazil, Russia, India and China.

Sat, 02/18/2012 - 22:41 | 2174178 dcb
dcb's picture

the "elites" of couse say this stuff, but people with very little can't be threatened with less. those still wanting to say in are doing so to preserve what they have and their way life. 80K in athnes rioting is equla to 2.3 illion in DC. the number is huge and that turn otu alone.

You also know how much BS it is because if it's only a fring on the far left they would put it to a vote, which they won't. the can't let the populace repudiate banker ideology. it would be the end of the world for the elites.

Sat, 02/18/2012 - 23:17 | 2174225 icm63
icm63's picture

Some one knows ...Greece is default is ON

Just have a look at the volume on the TVIX

the markets are ready to rock and roll ...

Sun, 02/19/2012 - 17:55 | 2175884 decon
decon's picture


Sat, 02/18/2012 - 23:22 | 2174228 zerotohero
zerotohero's picture

Default - Eurfault - Ourfault - potatoe patatoe lets call the whole thing off.

Sat, 02/18/2012 - 23:36 | 2174240 imamonkey
imamonkey's picture

Am I reading the headline right: " Germany, Greece quitely prepare for Pauly D"?

Jersey Shore is making the world-wide rounds, huh ? ...

Sat, 02/18/2012 - 23:52 | 2174262 Lefteris
Lefteris's picture


Three friends of mine from Greece verified this:

"The Ministry of Education decided to offer these snacks to children since the incidents of  student blackouts due to starvation are constantly increasing!"


Sun, 02/19/2012 - 00:21 | 2174302 Ungaro
Ungaro's picture

I'll take Greece for $100, Alex - becasue it is in Jeopardy.

Sun, 02/19/2012 - 00:23 | 2174306 alexwest
alexwest's picture

There is a minority – particularly on the far left – that wants out. Their chief argument, endorsed by some well-known foreign economists, is that a devalued drachma would lower wages and instantly make Greece more competitive.


ask Zimbabwe . is it competitive already?

ask former USSR.. they could have set ruble/$/Dmark curency rate as low as possible.. were they competitive?

dso it doesnt matter how work is done, how good people are , what business model is ? JUST MAKE CURRENCY WEAKER AND THATS ALL. no need in work anymore

I cant believe how stupid those idiots are..


Sun, 02/19/2012 - 00:51 | 2174340 dwdollar
dwdollar's picture

Finding any excuse to print money... That's what modern economics has been reduced to...

I wonder how many economists realize that NOT EVERY country in the world can have a weaker currency? Damned mathematics and logical reasoning getting in the way again...

Sun, 02/19/2012 - 00:35 | 2174316 decon
decon's picture

Merkel and Schauble are playing the classic good cop/bad cop on this one.

Sun, 02/19/2012 - 05:45 | 2174518 Olympia
Olympia's picture

Germans are proved to be the easy solution to breach Europe’s door. Whoever wishes to “set foot” on Europe and demolish it, the only thing he has to do is to “fool” the Germans. For a second time in less than fifty years, Europe’s idiots become the victims of foreigners and they serve their interests at the expense of Europe …it is for the second time that they take money from foreigners and they turn against their European “brothers” under their lenders’ orders …it is for the second time that the family’s fool takes “candies” from the “#r” of the neighbourhood in exchange to get him into the “bedroom” where the younger “siblings” sleep …In the “bedroom” which is common today due to the European Union...

Germany handed all the European countries over to the Jewish loan sharks, by naively believing that this way they would let Germany free. Germany put the European family at the “target” of the “markets” and it is collecting profits every time one of its members gets “executed”. The loan sharks who pretend to be the “hunters” are shooting safely in the European “hen house” because Germany has managed to “raise walls around” Europe. One after the other, Europeans are destroyed so that Merkel can pay the stupid and artificial German debts to the loan sharks. 

As in all previous instances, once again its “fairy tale” is extremely misleading. Nazi Germany who used to destroy Europe in the name of the Greek ideals, does the same thing today. The surrendered, corrupting, competitive after receiving subsidies and extremely anti-European Germany pretends to be the unrivalled European power that fights for the European unity and against the corruption. This country that took advantage of the unification to serve its national interests, requires from the other countries to sell themselves out in the name of this unification. This country that even today keeps corrupting anyone around it, it threatens the corrupted ones. It “vomited” over a whole continent and now it is looking for the “spot” on its victims to punish them.



Sun, 02/19/2012 - 00:38 | 2174321 gnomon
gnomon's picture

If Greece gets kicked out of the Eurozone, Greece will turn into an old folks home.  What is left of the younger generations will finally leave by any means possible.  


Sun, 02/19/2012 - 00:57 | 2174350 monopoly
monopoly's picture

No I am not Greek. lol, just trying to help. Kinda hang out in the West.

Sun, 02/19/2012 - 00:58 | 2174351 XRAYD
XRAYD's picture

 "The Greek government might not get everything it wants going forward, but if it tries really hard, it will now get what it needs."

Sun, 02/19/2012 - 02:07 | 2174394 Flounder
Flounder's picture

Why do I get the feeling that this essay and ensuing discussion are the most prescient to ever appear on ZH.  Like its not the cliffs edge anymore its the fall.

Sun, 02/19/2012 - 03:07 | 2174430 q99x2
q99x2's picture

Did I miss something AGAIN? I first feared that I lost a whole 7 days this time. But I checked my calendar and the date of the article. I went fishing on the 18th - today. Wasn't the 10th and the 11th last week?

Mon, 02/20/2012 - 02:47 | 2176925 slewie the pi-rat
slewie the pi-rat's picture

you mean friday, the 10th and saturday, the 11th?  of february? 


but when these dates are ON A SATURDAY AND SUNDAY = march, 2012

keep your eye on that tyler guy, q99;  he's pretty sharp sometimes!

(paste): Our personal sentiment is that nothing has changed: the only question on Tuesday will be when the next "drop dead" summit/meeting/shindig will be. And at what point will Greece's fate again not be sealed. Because if Reuters is correct in suggesting that someone, somewhere thinks that that the Greek exchange offer can be consummated in 3 calendar days, or one work day as the 10th and 11th are Saturday and Sunday, then the farce is already long over.

here's my favorite line:  'And at what point will Greece's fate again not be sealed.'

so, when they all go over the brink, the brinksmanship will end

until then:  same shit, different day = groundhogDay

Sun, 02/19/2012 - 05:44 | 2174516 Olympia
Olympia's picture

Loan sharks knew that if they took the dollars printing machines under their control they could suffocate the world ...they could initially suffocate USA and after taking the USA from the Americans, they could move and suffocate the whole world and take the countries from their people.

FED printed cheap money and loansharking multiplied this money in an unnatural way within the American economy boarders and they discarded them abroad so that they did not threaten USA. USA became the first state in the world with artificial “breathing”...

It cannot be possible but just in the USA for only the last year, more than one million houses were seized. It cannot be impossible but the New World has returned to tents and shelters ..has returned to the ages of Columbus. It cannot be possible that we allow to a few loan sharks looting the toils and the assets of people...


Global Debt Crisis


Sun, 02/19/2012 - 07:38 | 2174561 The Reich
The Reich's picture

Today several  German newspapers quote a from an internal secret paper from the German ministry of economics that Greece is "incapable of reform".


What a timely release...

Sun, 02/19/2012 - 08:26 | 2174585 s2man
s2man's picture

I'm late to the party, but here's my tin-foil-hat view of the Greek default:

If the globalists are ready for a world-wide financial collapse so as to have a sufficient crisis with which to usher in a one-world currency, then a Greek default will do so.

If the time is not ripe, then a default will be contained.

Sun, 02/19/2012 - 09:02 | 2174604 DoctoRx
DoctoRx's picture

"Rapo banking"


Sun, 02/19/2012 - 09:03 | 2174605 DoctoRx
DoctoRx's picture

"Rapo banking"


(Sorry-dupe post)

Sun, 02/19/2012 - 09:09 | 2174608 Irish66
Irish66's picture

Iran stops oil sales to French and British companies

Sun, 02/19/2012 - 09:48 | 2174624 cooperbry
cooperbry's picture

Time to get on with the default already...

Sun, 02/19/2012 - 10:16 | 2174648 fonzannoon
fonzannoon's picture

According to MSM the bailout will be approved tomorrow. Seems like a done deal. ZH really seems to feel differently. I am curious to see what happens.

Sun, 02/19/2012 - 10:43 | 2174679 Howdan
Howdan's picture

All I can say anymore is........B...B....B...B..B...Bullish????

There's only so many times you can be burned as a short and my nine lives are rapidly decreasing.

This slow-motion train wreck just seems to keep slowing down and I am sick of it.


Sun, 02/19/2012 - 11:16 | 2174720 SmoothCoolSmoke
SmoothCoolSmoke's picture

CNBC website:  Greece deal to be approved Monday from Austrian FinMin.  Regadless if the deal is real or not....if it moves the Dow up 100-200, then it is de facto real, because all this is all about the "Bernanke Scoreboad"; Dow higher, then things are better.


Sun, 02/19/2012 - 11:46 | 2174782 mendigo
mendigo's picture

is it likely this is a little over-blown?

if person1 owes a dollar to person2 owes a dollar to person3...

how much money is actually owed?

leaving aside the fact that its "only money" - we can make more

Sun, 02/19/2012 - 12:02 | 2174820 Sandmann
Sandmann's picture

If you read the leaked Memo to Die Welt today, Germany would like Athens to accept assistance in rebuilding their Tax Collection System, Universities, Schools, Bureaucracy and to leave the Euro and receive economic aid to generate Growth. Germany is puzzled that no response comes from Athens. It is a typical Ottoman state with corruption rife and clans getting rewards - the Greek public are being held hostage by their ruling kleptocracy - but that's hardly unique. Look at Britain.

Geheimpapier attestiert Griechen Reformunfähigkeit
Sun, 02/19/2012 - 15:11 | 2175465 ekm
ekm's picture

German banks are in as bad condition as greek banks, if not worse.

The bond vigilantes right now are attacking the weakest links. Germany's turn will arrive.

Sun, 02/19/2012 - 17:24 | 2175825 reload
reload's picture

Subordinated bond vigilantes now. Carrying feather dusters instead of baseball bats.

Sun, 02/19/2012 - 19:35 | 2176101 ekm
ekm's picture

You could be right, but whenever the "market" thinks that the government can control everything, then pooooooooooopppp. Everybody sells at the same time. It's coming near.

Have you heard about 2008? The same thing happened at that time my grand grand father told me. The old people remember that certain Bernanke assured everybody that any decrease in house prices was not going to be hurtful at all.

I think I'm going to dive back to the books and find out what happened after 2008.

Sun, 02/19/2012 - 12:26 | 2174905 EuroBear
EuroBear's picture

If Plan D were to have any legs to stand on, CDS should be going through the roof. It is otherwise:

Sun, 02/19/2012 - 12:38 | 2174933 tony bonn
tony bonn's picture

the only reason for the default - which most greeks do not realize - is to provide a pretext for nato troops to storm greece to administer it as a protectorate....sovereignty is a heavy price to pay for debt and the creditors knew it from the get go....ask the confessions of an economic hitman....

Sun, 02/19/2012 - 22:34 | 2176578 AU5K
AU5K's picture

Next up, we have Greece, $1.... taking bids on Greece, $1.  Birthplace of democracy, Plato, Aristotle ...  anyone, $1.

Wed, 02/22/2012 - 04:35 | 2183990 sikefeier0728
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