This page has been archived and commenting is disabled.

Greece Calls Crisis Meeting As Debt Talks Stall

Tyler Durden's picture





 

No sooner have the supposedly close (and yet so far away) Greek debt negotiations increased haircuts but added desperate incentives such as GDP Warrants, then The Guardian is reporting that Greek PM Papademos is calling crisis meetings with Greek political party leaders as tensions are clearly growing between Greeks and their EU overlords/partners. The 'increasingly intransigent' negotiating team sent by Brussels is demanding even more severe austerity measures before sanctioning the new bailout funds. The incredulity at the complete mis-communication and increasing bifurcation is nowhere more clear than the divergence between FinMin Venizelos saying "We are one step [away]. I would say it is a formality away from finalizing (the debt relief agreement)," and the disbelief by Greek MPs that "The troika doesn't appear to be willing to accept any concessions whatsoever on reducing the minimum wage and scrapping bonuses," said the government aide. "No political party is willing to move either, saying wage cuts are a red line they are simply not going to cross. You tell me how this is going to be resolved. We have no idea and we're very
worried
."

Greek Officials Attack EU and IMF As Debt Talks Stall

Greek officials launched a vociferous behind the scenes attack on European Union and International Monetary Fund negotiators as talks in Athens over the country's mounting debts appeared to stall.

 

Prime minister Lucas Papademos told aides that a crisis meeting of party leaders would be called as early as Thursday to thrash out a response to an increasingly intransigent negotiating team sent by Brussels, which is demanding severe austerity measures before sanctioning a further €130bn (£109bn) of bailout funds.

 

...

 

"We understand how difficult it is for MPs who are now faced with the hard option of voting through another round of austerity measures but the stakes are very high and one of our greatest concerns is that they don't understand just how high they are."

 

...

 

However, finance minister Evangelos Venizelos put on a brave face publicly and said that he believed an agreement on the debt swap was close. "We are one step [away]. I would say it is a formality away from finalizing (the debt relief agreement)," Venizelos told a news conference...

 

"The troika doesn't appear to be willing to accept any concessions whatsoever on reducing the minimum wage and scrapping bonuses," said the government aide. "No political party is willing to move either, saying wage cuts are a red line they are simply not going to cross. You tell me how this is going to be resolved. We have no idea and we're very worried."

 

The deadlock in Athens followed poor unemployment data for the eurozone that revealed a widening split between the continent's rich north and indebted south.

...

 

For more on GDP warrants and their lack of market acceptance (and concerns), there is an interesting article here on GDP-index bonds (albeit perhaps a little naive in its trust of government statistics) and here on valuation of GDP warrants - not that it matters as these incentivization schemes are simply bound to fail given the dispersion of bondholders and everything we have said before.

 

The literature has claimed that GDP-Linked-Warrants (GLWs) would provide opportunities to share growth risks between the issuer and the holder; however, the literature has also suggested that there might be moral hazard issues in the context of debt overhang, where the issuer country may lose incentives for promoting growth policies.

Despite these moral hazard problems, some have argued that, under asymmetric information, debt payments should be linked to the issuer’s GDP in order to facilitate debt-service relief. Experience has shown that the poor design and low quality of statistics have been major problems in the history of GLWs.

 

GDP Warrants and GDP-Index Bonds - Investors’ concerns
In this section, we discuss potential obstacles (real and perceived) to a wider introduction of GDP-indexed bonds and examine these obstacles and the ways in which they could be overcome.

To understand the main obstacles, we rely on the existing literature,13 on interviews with investors and other market actors,14 and on discussions in the expert group meeting held at the United Nations in October 2005 (United Nations, 2005a).

The three main concerns identified were:

  • Uncertainty about potential misreporting of GDP data.
  • Uncertainty about sufficient liquidity of GDP-linked bonds.
  • Concerns regarding the difficulties in pricing GDP-linked bonds.

The main issue in this case would be the first - Accurate reporting of GDP growth data
Not only is this a relatively important concern for market participants and investors, it is also one which international institutions and national Governments can do much to overcome. The concern can be decomposed into (a) inaccuracies in measurement of relevant variables, such as nominal GDP and the GDP deflator; and (b) deliberate tampering by debtor country authorities with a view to lowering debt servicing.

 


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 01/31/2012 - 16:16 | Link to Comment GolfHatesMe
GolfHatesMe's picture

Crisis meeting?  This is a job for the Super Committee!

Tue, 01/31/2012 - 16:34 | Link to Comment mattu13048
mattu13048's picture

Greece should sell EURUSD short with a 1:500 margin at Armada Markets and tell everybody that they, Portugal and Spain will leave eurozone this weekend. Germany will likely join the clowns.

Tue, 01/31/2012 - 16:41 | Link to Comment PicassoInActions
PicassoInActions's picture

i will be very suprised if close sources are nto doing exactly that.

I bet greece trough 3d party is playing  huge option on greek default and they will even make profit.

Tue, 01/31/2012 - 17:06 | Link to Comment SilverIsKing
SilverIsKing's picture

Commercials are long EURUSD up the ying yang while large specs are on the opposite side of that trade.

Don't be distracted by the "news" out of Europe.  The EUR will fly soon.

Tue, 01/31/2012 - 17:57 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

Greece leaving the Euro and taking the burden they represent with them would be about as bullish an event for the Euro as can be imagined.

But.

There is no way Greece will do this because it would be suicidal.  They could not borrow money thereafter to pay for oil to transport food, and there would no bailout mechanism for them at all.  So they stay.

And there is no mechanism in the EU treaty with which to kick someone out.

The Greece is leaving scenario looks weak.

Tue, 01/31/2012 - 18:34 | Link to Comment SilverIsKing
SilverIsKing's picture

I'm not saying I know what the eventual outcome is going to be.  What I am saying is that because the commercials are lined up on the long side, whatever happens will be bullish for the EUR.

Wed, 02/01/2012 - 07:25 | Link to Comment fajensen
fajensen's picture

Of course they can borrow. At higher rates but I happen to be old enough to remember 20% interest rates and guess what: Everybody survived!

Everybody knows that the bailout mechanism is for German and French banks, which the Greeks presently do not give a shit about - because when they do, they *will* firebomb them!

Everybody also knows that the EU will prefer to render every citizen down to biodiesel and sell it to Iran for gold in order to pay for further bank bailouts rather than let the Euro fail. This means the Greeks really do not have to take any lip from Merkozy, they just have to pass most of the bailout money back to Germany and France.

Oh - and the Greek army can whup Bundeswehr any day of the week!

Wed, 02/01/2012 - 09:25 | Link to Comment UberBoot
UberBoot's picture

What you expect is compliance: no deals, no tricks, no greek style fraud.

It's a simple test. The Greek government has to change its attitude. Everything they are suffering from is a result of their own policies. If they want help they have to stick to the letter of the contract, not try any more tricks, because no one would trust them.

It is not that the EU states are after Greece. They misbehaved and suffer the consequences.

Tue, 01/31/2012 - 18:12 | Link to Comment Nobody special
Nobody special's picture

There is a solution. Ask Iceland. Not only would it be better for Greece, it would be better for Greece's creditors.

1. It would be a credit default, so CDS would have to pay out. Much better for creditors than a 70% haircut where default insurance is void.

2. Greece would regain fiscal sovereignty.There would be plenty of pain, but less than the forced austerity Germany suggested.

3. The IMF would not be securing against Greece's assets. This is a win for the Greek people, as the current bailouts don't help them.

I could go on and on... but no need. Iceland showed the way. Greece need only follow.

Tue, 01/31/2012 - 21:56 | Link to Comment fockewulf190
fockewulf190's picture

Nah, Greece needs to get radical. Eye bursting, bowl moving, hyenia laughing radical.

1) Abandon the €. Bring back Drachma. Peg it to the Swiss Franc. Giggles. Shits.

2) Withdraw from the EU, treaties be damned. National Security and all that jazz.

3) Declare neutrality and leave NATO. Slashes armed forces, sells subs, frigates.

4) All banks are nationalized and one new one emerges with a clean slate.

5) Greece's new national strategy is to become a giant Cayman Islands.

6) Greece turns itself into the ultimate Sin City, slashes corporate tax rates to the lowest north of the equator and encourages coorporate, casino and resort development, one page tax returns, secrecy laws for investors, the works. Ireland wimpers.

7) Greece gets to be a real cool place, real quick.

Wed, 02/01/2012 - 01:14 | Link to Comment walküre
walküre's picture

You are forgetting one important cultural aspect. Greek are corrupt and don't trust each other.

Greece w/o Eurozone is Albania with better museums.

Wed, 02/01/2012 - 08:38 | Link to Comment fockewulf190
fockewulf190's picture

May be the case, but that won't stop the Europeans, and especially the Germans, from booking their vacations there and diving into the ouzo.

Wed, 02/01/2012 - 06:18 | Link to Comment StychoKiller
StychoKiller's picture

Surely the Wermacht would then let the Panzers roll...:>D

Wed, 02/01/2012 - 08:59 | Link to Comment fajensen
fajensen's picture

Good ideas - except slashing the armed forces: Greece will need an effective deterrent to keep Turkey and/or NATO away.

Remember, NATO is Obamas and the Banksters Foreign Legion and the Turks always, always wanted Europe and will forever try to grab something whenever they can!!

Tue, 01/31/2012 - 17:07 | Link to Comment johnu1978
johnu1978's picture

"Only losers pay their debts!" -Ben Bernanke

 

 

-John
http://www.piratemyfilm.com/projects/311

Tue, 01/31/2012 - 18:04 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

The real outrage here is the abuse of the banks -- not an entity to be lightly defended here on ZH -- but look at what's happening.

Okay, they made a bad investment.  They are going to lose money.  But what's happening is they are not just losing money invested . . . they are being FORCED to take 3.6% 30 year bonds at 1/2 the value of present bonds and then lose that too.

That means they are forced to lend more money.  If they lose their present loan portfolio, well, so it goes.  But the government array is FORCING them to lend more money for 30 years to fund the bullshit extend and pretend ponzi.

No one should be forced to make a losing investment at gun point.  Not even banks.

Tue, 01/31/2012 - 18:13 | Link to Comment zanza
zanza's picture

I don't think Greece is asking for more money from the banks, just their current bonds will be devalued by a hefty portion.

Tue, 01/31/2012 - 20:06 | Link to Comment Buck Johnson
Buck Johnson's picture

You're totally righ.

Tue, 01/31/2012 - 16:35 | Link to Comment azzhatter
azzhatter's picture

Has anyone called Harry Reid?

Tue, 01/31/2012 - 16:39 | Link to Comment battle axe
battle axe's picture

We need Timmy to the rescue...

Tue, 01/31/2012 - 16:48 | Link to Comment HardlyZero
HardlyZero's picture

Maybe a timeshare or workshare...I could live with that.  When this thing falls apart there is a 50/50 chance he won't be able to get back in time before he gets stuck over there.

Tue, 01/31/2012 - 17:22 | Link to Comment JPM Hater001
JPM Hater001's picture

Edited for functionality:

Xerxes the banker: "There will be no glory in your sacrifice. I will erase even the memory of Greece from the histories! Every piece of Greek debt shall be burned. Every Greek historian, and every scribe shall have their eyes pulled out, and their tongues cut from their mouths. Why, uttering the very name of Greek soviergn Debt, or Papadidimousus, will be punishable by death! The world will never know you existed at all!
King Leonidas: The world will know that free men stood against the banks, that few stood against many, and before this battle was over, we walked away with all of your money.

Tue, 01/31/2012 - 17:50 | Link to Comment Captain Kink
Captain Kink's picture

The Greeks will fold... They have no choice.  Wake up to the reality.  Even if they say no, it won't matter.  What choice does the Greek govt have? the Greek people?  AND WHAT DO THEY KNOW ABOUT THEIR LONG TERM INTERESTS? Moreover, Where are they guaranteed a referendum?    There is no escape (from the EU) mechanism.  It is already one govt.  Much to the German people's peril, this is the way it is.  They will be forced to soak up the profligacy forever.  The Greeks think they have something to bitch about...why is no one asking the German citizens?  Fukking Greeks should be laughing, 30 cents on the dollar. Seriously? "Hey, we got away with it this time!  We can sign now, do it again later!"  This is precedent setting.  It will never change.  The Germans are Fukked.  Short EU forever.  it will stay together and it will be horrible.  Talk about slavery. PITY THE GERMANS.

Tue, 01/31/2012 - 21:23 | Link to Comment stocktivity
stocktivity's picture

Obama sends Timmy over there every other week. They just laugh at him, give him a spanking, and send him home on the first plane out.

Tue, 01/31/2012 - 22:57 | Link to Comment tom a taxpayer
tom a taxpayer's picture

 

Breaking News: According to Interpol sources, last week Hillary Clinton, U.S, Secretary of State had to intervene with Davos authorities to save Timothy Geithner, U.S. Secretary of Treasury, from arrest and a night in jail. It seems Timothy tried to get past the velvet rope front entrance to the Cabanna disco by claiming he was a "playa". The disco security team refused to let "this girly man" into the hottest disco in Davos. Timothy flew into a "girly rage", according to one witness, and the security team dragged him away to the local magistrate. Today the State Department issued an apology to the Swiss Embassy and explained that Timothy was "under a lot of stress and appears to have gone off his meds".

http://www.venere.com/hotels/davos/hotel-europe-davos/

 

Tue, 01/31/2012 - 16:51 | Link to Comment Stoploss
Stoploss's picture

TIMMBBERRRRRRR!!!!!!

Tue, 01/31/2012 - 17:59 | Link to Comment CrashisOptimistic
CrashisOptimistic's picture

Greece has a LOT more leverage than people realize, no pun intended.

They, and no one else, decides which bonds get paid and which do not.  They have zero reason to put the ECB's and the IMF's holdings last in the default queue.

If the Brussels negotiators are playing hardball, Greece can do the same.

Tue, 01/31/2012 - 18:44 | Link to Comment NumNutt
NumNutt's picture

Yeah funny 'crisis meeting' should be called something more realistic like - What do we do when the shit hits the fan meeting.

 

Tue, 01/31/2012 - 16:18 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Too bad.

And they were sooooo close to an agreement to go without the lubricant.

Tue, 01/31/2012 - 16:55 | Link to Comment Poor Grogman
Poor Grogman's picture

I'm starting to think there is method in the Greek madness.

Milk the money changers for as much as you can...

Then do an Iceland...

Perhaps we are witnessing the birth of a new bungling bureaucratic M/O, after all one must always follow the path of least resistance right?

 

Tue, 01/31/2012 - 17:47 | Link to Comment Captain Kink
Captain Kink's picture

 I don't think they can do this...legally, at least.  Where is the mechanism by which they can leave the EU?  If it existed, the Germans should leave the EU.

Tue, 01/31/2012 - 18:16 | Link to Comment Poor Grogman
Poor Grogman's picture

Is the FED legal?

What about a lot of the recent wars?

Or the bailouts for that matter?

I think what is Legal is being redefined daily.

Interesting times...

Tue, 01/31/2012 - 22:51 | Link to Comment Bringin It
Bringin It's picture

Little people must obey laws and be legal.

Tue, 01/31/2012 - 19:31 | Link to Comment HardlyZero
HardlyZero's picture

(disclosure: I'm a Greek fan) Given all the broken "rules" it is not really clear that Greece ever was an EU member (legal that is).  There are many that would question Greece's legal membership in the first place.  So it would go something like...well we never really were serious about joining your sucky frat in the first place !!

Wed, 02/01/2012 - 06:22 | Link to Comment StychoKiller
StychoKiller's picture

Perhaps we should consider what VonRibbentrop thought of international treaties...

Tue, 01/31/2012 - 17:56 | Link to Comment Ropingdown
Ropingdown's picture

The only problem is that the Germans are onto them.

Tue, 01/31/2012 - 19:32 | Link to Comment HardlyZero
HardlyZero's picture

There is always the "Leonidas Solution".

Tue, 01/31/2012 - 16:18 | Link to Comment Theta_Burn
Theta_Burn's picture

And not a blip on the Euro....

Tue, 01/31/2012 - 16:22 | Link to Comment LongSoupLine
LongSoupLine's picture

 

 

...and SPX green...bullish.  Unreal, simply unreal.

Tue, 01/31/2012 - 16:21 | Link to Comment Mercury
Mercury's picture

And most importantly: where we ordering lunch from this time?

Oh, to be a Euro-zone caterer in a time of financial crisis...

Tue, 01/31/2012 - 16:19 | Link to Comment The trend is yo...
The trend is your friend's picture

i have a feeling each one of these clowns is simply talking his/her book depending on how they are positioned for the day or week

Tue, 01/31/2012 - 16:20 | Link to Comment falak pema
falak pema's picture

the wages of slavery, the road to humiliation is unending. But those Greek Oligarchs need to pay before their own people for bringing about this situation in the first place.

Tue, 01/31/2012 - 16:20 | Link to Comment Hippocratic Oaf
Hippocratic Oaf's picture

Biggest goddamned yo-yo I've evuh seen!

Tue, 01/31/2012 - 16:24 | Link to Comment LongSoupLine
LongSoupLine's picture

Biggest goddamned yo-yo I've evuh seen!

 

You obviously have never seen Cramer...

Tue, 01/31/2012 - 16:35 | Link to Comment Hippocratic Oaf
Hippocratic Oaf's picture

Nope. He's a small yo-yo.......'bout 5'4" if I'm correct.

Tue, 01/31/2012 - 16:21 | Link to Comment pauhana
pauhana's picture

What crisis?  There's a crisis?  Can't be.  Markets are up, everything is beautiful. 

Tue, 01/31/2012 - 17:16 | Link to Comment JPM Hater001
JPM Hater001's picture

I agree.  We went from down about 80 to near even again today.  This is all a normal function of the healthy economy.  It's like a chest breathing...it goes up, it goes down but it will go up again...until of course...it doesn't.

Tue, 01/31/2012 - 17:55 | Link to Comment Roy T
Roy T's picture

With some healthy gains in MS,GS,C,JPM, must be all priced in  ;)

Tue, 01/31/2012 - 16:23 | Link to Comment Vince Clortho
Vince Clortho's picture

Extremely bullish.  Activate the Bull Pump!

Tue, 01/31/2012 - 17:12 | Link to Comment navy62802
navy62802's picture

Wow. Thanks for the link!

Tue, 01/31/2012 - 16:27 | Link to Comment falga
falga's picture

Inevitable default!

Euro is strong because everyone knows already that EU will not "vaporize" another 130 billion Euro....

Tue, 01/31/2012 - 16:30 | Link to Comment apu123
apu123's picture

Its bullish! Risk on!  Look at the Dow only down 17, go PPT.  Any guesses on how long the TPTB can keep this charade going?

Tue, 01/31/2012 - 16:33 | Link to Comment I Am Not a Copp...
I Am Not a Copper Top's picture

Until all the bears give up and go long

Tue, 01/31/2012 - 16:45 | Link to Comment scatterbrains
scatterbrains's picture

Until they own everything then they'll tell all yuz to go fuck yourself, after which we'll get our instant currency devaluation... so if you couldn't afford the /INDU at 12600  you certainly wont be getting a piece at 24000k the morning after.

Tue, 01/31/2012 - 16:55 | Link to Comment scatterbrains
scatterbrains's picture

lots of interesting setups out there. BAC looks finished eating bears..

 

http://fiatflaws.blogspot.com/

Tue, 01/31/2012 - 16:33 | Link to Comment battle axe
battle axe's picture

Bye bye Greece, please oh please. 

Tue, 01/31/2012 - 16:33 | Link to Comment boogerbently
boogerbently's picture

"mis-communication"???

It seems to me like they have been VERY consistent in thier message to Greece.

IF....IF you want our money, here are the conditions. The ball is in Greece's court, it's their game to lose.

They need to start developing a PR blitz about why Greek default and expulsion from the EU is a GOOD thing.

For the most part,  think it's "priced in."

Tue, 01/31/2012 - 16:34 | Link to Comment azzhatter
azzhatter's picture

If Papademos had a pair of brassies like Merkel does, he would tell the EU to go fuck themselves

Tue, 01/31/2012 - 16:53 | Link to Comment HardlyZero
HardlyZero's picture

This is GREECE !!!

Tue, 01/31/2012 - 17:10 | Link to Comment _ConanTheLibert...
_ConanTheLibertarian_'s picture

It's all propagandos

Tue, 01/31/2012 - 16:35 | Link to Comment mattu13048
mattu13048's picture

Greece would have a budget deficit even if they had no budget. 

Tue, 01/31/2012 - 16:38 | Link to Comment alien-IQ
alien-IQ's picture

Crisis meeting summary:

Raise your hand if you want to order Gyros for lunch?

Raise your hand if you want to order Suvlaki?

Raise your hand if you want to default on the loans?

Meeting adjourned.

Tue, 01/31/2012 - 16:39 | Link to Comment Freddie Krugerrand
Freddie Krugerrand's picture

Why can't the Greeks just as Zeus or Hercules to kick some EU ass??!!

Tue, 01/31/2012 - 16:52 | Link to Comment HardlyZero
HardlyZero's picture

Battle of Thermopylae comes to mind.  It might show well to the world...but won't end well for Greece (again).

Tue, 01/31/2012 - 16:40 | Link to Comment taniquetil
taniquetil's picture

Oh wait, GREECE is calling a CRISIS MEETING?

 

Oh man, now we know the problem is really serious. I guess we were all just joking around before. But yeah, as of right now, it's probably a crisis.

Tue, 01/31/2012 - 16:41 | Link to Comment battle axe
battle axe's picture

Pay the bond holders back in goats, they seem too have a lot of them in Greece...Everyone likes a nice leg of lamb.

Tue, 01/31/2012 - 16:47 | Link to Comment Waterfallsparkles
Waterfallsparkles's picture

You get a leg of Lamb from Goats??????

Tue, 01/31/2012 - 16:51 | Link to Comment battle axe
battle axe's picture

You know, you have a point there....my bad.

Tue, 01/31/2012 - 16:47 | Link to Comment agent default
agent default's picture

Relax people, this is rigged.  They have already accepted and agreed to everything, the only emergency they are debating is how to serve it to the dumbfucks who have not revolted yet.

Tue, 01/31/2012 - 16:49 | Link to Comment Texas Ginslinger
Texas Ginslinger's picture

The 2 who seem to be in charge at the ISDA, the group that will decide if the Greek debt problem is a credit event, which will hose 5 big American banks;  

Conrad Voldstad - special advisor to the board for the International Swaps and Derivatives Association, Inc. (ISDA). He was named to the position effective Jan. 1, 2012.   Voldstad has been in the derivatives industry since the early 1980s, when he executed his first interest-rate swap (in 1983). He was the first head of the derivatives group at J.P. Morgan in 1984 and then held several positions at Merrill Lynch, including founding Merrill Lynch Derivative Products, an entity that developed credit derivative products.

George Handjinicolaou - Handjinicolaou served as deputy CEO of ISDA from mid-2007 to mid-2009 before joining TBANK as CEO for a little more than a year.  He has also served as vice chairman of the Hellenic Capital Market Commission (2009-2010), treasurer of the International Finance Corporation (IFC) (1994-1995), and senior vice president of Bank of America Corp. (1992-1994). Handjinicolou is a founding partner of investment management company Etolian Capital and has worked in finance for 30 years.

Would be interesting to know what kind of pressure they are applying to the hedge funds over the haircut loss.

QE3 to the rescue.......!!!!!!!!

Tue, 01/31/2012 - 18:35 | Link to Comment bank guy in Brussels
bank guy in Brussels's picture

A number of ZH commenters are asking about a Jim Sinclair audio interview on ISDA, with a bombastic title about five big US banks 'defaulting' this week in relation to Greece ...

The text of the Jim Sinclair interview is on the page below. It is not really anything new or dramatic, but Jim sounds a little more wild-eyed than usual in some moments as vents his anger about CDS derivatives.

All Jim really says is that ISDA - with the major banks as its board members, including the same banks who have written most of the credit default swaps in the world - as discussed in the post just above -

That ISDA will not declare the Greek debt haircut 'agreement' to be a default, even if creditors are only promised 30 cents on the euro.

It is of course a bit of a semantic game (with big consequences), as to whether this pushed - manipulated - extorted 'agreement' is a default or not.

Jim Sinclair does not directly address the 'creditors agreement' theme, however, so he seems to rather over-push the idea that it must be a 'default' if the bonds are not paid in full, 'agreement' or not, and thus that the big US banks who wrote CDS on Greece, are thus in 'undeclared default' that will be ignored by media.

In other words, another old theme, 'the banks are insolvent' but pretending they are not.

And beyond that, Jim has another theme that ISDA is rigged to act to the benefit of its big bank board members, not the trusting investors who bought CDS 'insurance' ... which ZeroHedge was talking about ages ago.

Going a little over the top, Jim speaks of ISDA as if it was the prime vehicle for the bankster class in general, "... more powerful than governments ... " or central banks etc. ... instead of just one more tool of the banks.

Jim feels that ISDA's eagerness to hide the liabilities of banks by avoiding 'default' declarations, is a major part fueling the 'QE to infinity' that he sees as flooding the Western world over the next two years.

Instead of listening to the interview, you can read or skim the text here - Jim Sinclair on the Ellis Martin Report, 30 January 2012:

http://www.ellismartinreport.com/node/181

Tue, 01/31/2012 - 22:00 | Link to Comment Calmyourself
Calmyourself's picture

Let  me simplify that for you.  Their is no rule of law, no ISDA, no rules, no contracts, nothing will stop this ponzi until it must stop and the only thing that causes it to freeze up is extreme civil unrest caused by hunger.  Not war, not oil (directly), not Iran; hunger and only hunger will end this scheme.  Hedge, trade and prepare accordingly; that is all.

Tue, 01/31/2012 - 16:49 | Link to Comment SmoothCoolSmoke
SmoothCoolSmoke's picture

Crisis? What crisis?  /ES going green for the day.

Tue, 01/31/2012 - 16:50 | Link to Comment willien1derland
willien1derland's picture

How much longer will we suffer through this maze of lies?! How much more AUSTERITY can the poor Greek people accept?! If there were only ONE leader..JUST ONE...who had integrity and would simply state the truth-then & only then could progress occur -

Wed, 02/01/2012 - 06:29 | Link to Comment StychoKiller
StychoKiller's picture

Maybe they should import one of those "Boys From Brazil"

Tue, 01/31/2012 - 16:58 | Link to Comment LMAO
LMAO's picture

Greek officials launched a vociferous behind the scenes attack on European Union and International Monetary Fund negotiators as talks in Athens over the country's mounting debts appeared to stall.

So these fucking Greek official asshats are about to throw a hissy fit for not being awarded a Gold medal after flushing the last bailout-package down the shitter at World-record pace?

Hmmm,

I can see where all the anger is coming from.

Wed, 02/01/2012 - 16:48 | Link to Comment LMAO
LMAO's picture

WTF, both

Lucas Papademos and Evangelos Venizelos reading ZH? Unreal

Still You're fucking asshats both of you!

Tue, 01/31/2012 - 16:53 | Link to Comment Waterfallsparkles
Waterfallsparkles's picture

Greece is just the first Domino to fall.  Although, Greeces problems for now seem remote for the Us, eventually all the Dominos will fall and take down the US with it.  The Bankers and Wall Street will be rich beyond belief and the World will be left to pick up the pieces..

Wed, 02/01/2012 - 03:17 | Link to Comment the tower
the tower's picture

... and in their coke fuelled arrogance they think they will keep that wealth?

 

Look at history... why do you think the guilottine was invented?

 

And once it started chopping there was no end to the heads that fell...

Tue, 01/31/2012 - 16:54 | Link to Comment Waterfallsparkles
Waterfallsparkles's picture

Humpty Dumpty sat on a wall.  Humpty Dumpty had a great fall.  All the Kings Horses and all the Kings Men could not put Humpty Dumpty together again.

Tue, 01/31/2012 - 16:56 | Link to Comment apu123
apu123's picture

Its risk on!  All this has been priced in.  Greece, Portugal, Spain Ireland, Italy, Belgium, France and Germany going bust has all been priced in, we have decoupled.  Didn't you see CNBCialis?  Truthfully I am amazed they have kept this show going as long as they have.  I think sooner or later there is going to be a Franz Ferdinand moment where something gives and we get a financial avalanche. 

Tue, 01/31/2012 - 16:59 | Link to Comment DutchMadness
DutchMadness's picture

Story goes that Greec Army colonels are ordering soldiers to their barracks. The ENDGAME will unfold soon.

Tue, 01/31/2012 - 17:00 | Link to Comment Kaiser Sousa
Kaiser Sousa's picture

crisis???what crisis???

just plan a plan to create a plan...ah hell

u know what im saying......

Tue, 01/31/2012 - 17:01 | Link to Comment pods
pods's picture

Which iteration is this of the "Greece is saved" meme?

This is like Groundhog day.  Greece should just hang a big sign on the wall:
"We will pay you tomorrow."

pods 

Tue, 01/31/2012 - 17:06 | Link to Comment apu123
apu123's picture

A couple of months ago this non-stop shilling by the likes of CNBCialis and Bloomberg had an air of arrogance about it, now it has taken on an air of desperation.  The actors on both outlets seem to be desperately hyping any sliver of good news they can and marginalizing any thing to the contrary.  Kind of like Chip Diller in Animal House when he attempts to control the crowd at the end of the movie.

Tue, 01/31/2012 - 17:10 | Link to Comment Joebloinvestor
Joebloinvestor's picture

Wasn't this a "crisis" three fucking years ago?

Tue, 01/31/2012 - 17:13 | Link to Comment Texas Ginslinger
Texas Ginslinger's picture

"...The E.C.B.’s charter does not allow it to buy bonds directly from national treasuries, as the Federal Reserve has done in the United States as part of its so-called quantitative easing program to ensure liquidity in the lending markets. And yet, the E.C.B. can and does do essentially the same thing, by buying government bonds on the open market..."

From another article;  "...German officials are adamant that the other euro zone governments and the I.M.F. have already done much to protect private bondholders by, for example, providing Greece with financing after it was no longer able to sell bonds on the open market. Those measures have helped Greece avoid a default and prevented more catastrophic losses for holders of Greek bonds..."

Does this mean the ECB is the only buyer of Greek bonds on the open market..??

 

Tue, 01/31/2012 - 17:14 | Link to Comment the golden rule
the golden rule's picture

Life is such a roller coaster and then it drops but what should i scream for this is my theme park lil wayne

so with that the market crashing will happen its priced in but just as its there market its our world so hold on store your treasures in heaven

Tue, 01/31/2012 - 17:14 | Link to Comment AldoHux_IV
AldoHux_IV's picture

This whole process has been obsurd at best and a clusterfuck of ill-planned attempts at papering over a solvency crisis that requires less financial engineering and gimmickery and more real life debt destruction.

All the talks and negotiating by the way, are going towards solutions that do nothing to solve the overall problem.

Tue, 01/31/2012 - 18:49 | Link to Comment BaselHayden
BaselHayden's picture

The commentary out of the Greek FinMin and the IIF brings back memories of Baghdad Bob.

Wed, 02/01/2012 - 06:38 | Link to Comment StychoKiller
Tue, 01/31/2012 - 19:32 | Link to Comment No One
No One's picture

Just fucking default and go to the Drachma already. 

Tue, 01/31/2012 - 19:51 | Link to Comment loveyajimbo
loveyajimbo's picture

Is this Greek drama?  Nothing has changed, nothing is fixed, the friggin crooks should have their bonds go to ZERO, just like the poor schlub on the street when his casino bets go rotten...  And the CDS guys will never pay, at loeast not for many years as that toxic turd moves through the bowels of our corrupt justice system...  BAH!!!

Tue, 01/31/2012 - 21:05 | Link to Comment ucsbcanuck
ucsbcanuck's picture

"Two minutes Turkish, two minutes. You said two minutes, 5 minutes ago."

Tue, 01/31/2012 - 21:36 | Link to Comment mammoth mo
mammoth mo's picture

So this gets kicked into next week.

Nothing changes but the date.  Big announcement coming this weekend.  Deal done.... almost.

 

Things will be signed surely by next Thursday. 

This is nothing new - posturing. 

Tue, 01/31/2012 - 23:12 | Link to Comment beatus12
beatus12's picture

They should just declare the big B, and force an Equador

type deal, apparently that was suppose to be quite a

favourable deal for all concerned - this has dragged on

forever.

 

 

Wed, 02/01/2012 - 00:18 | Link to Comment Fozzy Slippers
Fozzy Slippers's picture

Leave. Fuck the Rothschild central bank. Either 5 years of depression or 30 years under the IMF.

Do NOT follow this link or you will be banned from the site!