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As Greece Denies, Germany Begins Greek Default Preparations
Literally seconds after the Greek finance ministry announce that any rumors of a Greek default over the weekend are absolute rubbish (we wonder who would admit such rumors?), we get the following from Bloomberg: "Chancellor Angela Merkel’s government is preparing plans to shore up German banks in the event that Greece fails to meet the terms of its aid package and defaults, three coalition officials said. The emergency plan involves measures to help banks and insurers that face a possible 50 percent loss on their Greek bonds if the next tranche of Greece’s bailout is withheld, said the people, who spoke on condition of anonymity because the deliberations are being held in private. The successor to the German government’s bank-rescue fund introduced in 2008 might be enrolled to help recapitalize the banks, one of the people said. The existence of a “Plan B” underscores German concerns that Greece’s failure to stick to budget-cutting targets threatens European efforts to tame the debt crisis rattling the euro. German lawmakers stepped up their criticism of Greece this week, threatening to withhold aid unless it meets the terms of its austerity package, after an international mission to Athens suspended its report on the country’s progress." Looks like at least one very "naive" government is not buying the latest batch of lies from Greece.
More:
Greece is “on a knife’s edge,” German Finance Minister Wolfgang Schaeuble told lawmakers at a closed-door meeting in Berlin on Sept. 7, a report in parliament’s bulletin showed yesterday. If the government can’t meet the aid terms, “it’s up to Greece to figure out how to get financing without the euro zone’s help,” he later said in a speech to parliament."
The German government is awaiting the results of the Greek progress report and will decide what course of action then, a government spokesman said, speaking on customary condition of anonymity.
European bank credit risk surged to an all-time high today and stocks fell worldwide on concern that the debt crisis is escalating. German two-year yields declined to a record as investors sought a haven and Greek two-year note yields added as much as 86 basis points to 55.91 percent, a euro-era record.
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E
I can't argue with that.
"E" For ENGAGE The Bailout Seats ...
I can't help thinking they chose a bad day to mess with gold and silver prices - but it must be tough for them to pick a good day at the moment!
The market could surprise on a default.
I guess so - like that weird drop in gold price when the SNB said they would peg the CHF to the Euro - it made no sense - but I guess people often run the wrong way when they panic...
Yes Thomas is right. We know gold is manipulated. We know they have margin hikes remaining. Do you want to gamble they won't use them with equities failing, a crashing Swiss franc, the prospect of a Greek default over the weekend, and prices this close to $2k gold? If not for this, for what are they keeping their powder dry?
If I were them, I would hit gold with EVERYTHING I had, right here, right now (ala silver in May). I covered. If I miss the move above $2000, so be it.
Times like these make me love my physical, so much less to worry about.
"If not for this, for what are they keeping their powder dry?"
I agree that from their point of view they should be hitting it harder now, but there are future events for which they may wish to keep dry powder. After $2000 will come $2500, which I believe is the inflation-adjusted high from 30 years ago (not that the situation 30 years ago was anything as like as calamitous as now...) and they will really want to make it look like a bursting bubble when we get there.
Of course a Greek default is bad, and there may be a falling domino effect, but the Greek economy is tiny, and they will paper over the problem again.
It may be enough (from their point of view) that their manipulation is causing huge volatility, which will be observed (and spun for all it's worth) by the MSM, which will scare off all those would-be investors who are now becoming aware of gold and who may be going into it for the first time.
maybe TBTF and PD's will double down on fiat by backstopping greek bonds despite failure to meet ECB terms?
The PD's have big deposits in the FED, they could deploy those to make the bid.
Why doesn't Greece just say fuck off to the IMF and ECB, German banks, and the who ever else they are fucking ensalved to? Here's a video about the whole European mess with a concentration on Italy's protest this week. Ithink it's starting to anger me. Sorry.
http://www.youtube.com/user/zedgehero
No need to apologize for getting angry - the Greeks should be a lot more angry - and as for the Irish - it is really sad to see them put into such a mess...
I agree that Greeks should be more angry. The truth is they are angry, and they detest their government. Their government does whatever they are told by the IMF and others. They do not reflect the people in any way, but it is true that the more people should have joined the protest sooner.
Beacause I think if the Greeks tell the Germans to "fuck off" preparations will then include constructing a series of camps equiped with showers and ovens, all conveniently located near rail lines.
Why doesn't Germany just say fuck off to lazy, lying, deadbeat tax cheats like the Greeks?
Oh wait, they are just about to...
I agree. But I wonder if someone might know the answer to this-- What difference does it make if a country declares default or is declared by another to be in default? I'm asking because many people say it was in Greece's best interests to default. Now when Germany is going to do it for them, people seem to think Greece will be the loser in this. I don't understand.
simply because greeks are not icelanders. different mentality.
What is with the Illuminatti symbolism around 9/11? Joachim and Boaz? Solomon's Temple? And now we have a comet switching up our gravity, and most important, electro-magnetism. A former NASA scientist, and friend of Carl Sagan, says it is a time capsole. Whatever it is, it is ominous, and so are the actions of the pagan Illuminatti.
Order out of Chaos, this is their goal. They know what fear does to the status quo; it makes people complacent and this allows the Dinosaur Kings of old to further implement their control system. They use one side of the sword to destroy the system, and the other side offers the solutions. Yet both sides have the same effect. Bank failure? Print more debt. Terrorism? Kill millions of more brown people. Yup, that will do the trick.
So now Greece fails, and people rush from Greek bonds into Euros. EUR/USD goes to $2.00, as Bernanke and Obama throw $4.47 trillion into the fire (perfect cover for US fiscal and monetary policy). And al around the Egyptian New Year! These Dinosaur Kings, they are Egyptian by the way. You can call them Jews, what have you, but they are Pagans. Yes they invented the "One True God", yes Moses was likely to be Akhenaten, but they are just as much Catholic as Jewish. They do not worship what the status quo worships: the status quo worships the daily bread. The Dinosaur Kings worship POWER and CONTROL, because they want their Kingdoms back. They are sick of the middle class.
So now into the fire it goes, and the slow burn of the last century torches the tree of life. Soon the monopoly game will be over, and all fiat will be worthless in nominal terms. Reality is at the doorstep, and boy is she ready to rock and roll.
Hendrix, if you ever get a movie deal for this "Dinosaur Kings torching the tree of life" idea, count me in for one ticket. With Michael Bay as director of course...
I'll see you at the premier then!
Hendrix, you lost me in the second sentence. Just tell me, is this good for gold or bad for gold?
LOL
lol.....
im not scared, i have... umm gold umm God umm guns? Umm faith in my fellow man ... oh fuck i better fall in line!
FALL IN LINE BITCHEZ LIKE DA JEWZ DID AT AUSCHWITZ
Which is to say that nobody ever profited by falling in line, and i doubt there are jewish dinosaur kings.
Henry "Party Boy" Kissenger is the only Jew allowed at the Grove. I think that says a lot about Jews running the world.
David Rockefeller has a great quote from the 70's, "It does not matter which God people worship, as long as they worship one."
I think that sums up the religous control system pretty well.
Dude, first you tell me my paper money is worthless and now you tell me there is no God?
What a piece of shit Friday this is turning out to be.
Haha! Thanks for the laugh.
fuck you-ready to die??
???
This is a serious blog, right?
This is ZH, WTF??!!
Which part isn't serious? The Illuminatti is real, they are pagans, their roots can be traced back to Egypt and the tribe of Aten, they were pissed that they were expelled from Egypt, they were pissed that they have not taken control of the entire world, there is a comet heading right at us from another solar system, it is affecting our earth's magnetic pulses, and Europe is about to implode on the same day this comet is passing us by, which is the same time of the Egyptian New Year. So which comment do you think is not serious?
But one thing is there where 2 types of Jews that inter-mingled with the Egytians. Ashkenazi Jews where the ones that took control with inter-mingling sex.. Henss Zion
There was a priest class that took over Egypt and they begot the One God religion; they were exhiled.
The euro going to two dollars...ummm and perhaps the boring, repetitive doom and gloom sign-off. It's almost like being inflicted with 24/7 OCD. zzzzzzzzzzzz
Is it always necessary to put style over substance in blog comments.
Substance? I think I have enough of that to keep some style.
'Buy All the Euro You Can' If Greece Defaults: Jim Rogers:
http://www.cnbc.com/id/44452871
I don't know why, but your psychodelic post about Dinosaur Kings made me think of that 1960's movie Barbarella. Jane Fonda was totally groovy in that flick.
That is awesome
nice rack, too. Jane, not Hendrix
kaboom
Possibly not. Even Germany is prepared to print to cover this one.
The interesting thing will be what happens in the longer term. Greece will show the other PIIS what happens when you have a floating exchange rate.
rescue fund..not enough
Memories of Weimar might do the trick. I doubt Germany wants to repeat history.
pfft according to modern theory the Weimar Germans mistake is that they didnt print enuff
debt holders not responding...running
Krugman, Is that you?
Gloom then Boom then Doom..
Faber on CNBS Today
but wien said all is good and zandi is ecstatic
Popcorn bitchez!!!!
Wait shhhh the HFTs haven't noticed yet...
Sorry, the corn and energy required to make the popcorn is too expensive, you'll have to eat this paper instead. yuck, yuck, yuck.
Damn it!!!!
Wait you can't eat fiat?
Next you will tell me some CRAZZZZYYY story that some farmers will actually accept precious metals in exchange for tangible food stuffs.
/sarc
quick pick up some cash for the weekend :- ) just in case
Get your nets ready, the helicopter's coming!
damn it must be nice to be a big bank or insurance company.
yay!
"a possible 50 percent loss on their Greek bonds if the next tranche of Greece’s bailout is withheld"
Holy sh!t! Now I understand why Socgen has lost 8% since this morning...
If you are going to default by as much as 50% then why pay anything at all - all the banks are gonna mad at them for defaulting anyhow - maybe that 50% figure will get revised upwards...?
Flaherty raises spectre of Greece leaving euro zone
Canadian Finance Minister says the debt-laden country must push forward with its severe austerity program
10:13 AM
Of course. If the Greeks would just be willing to starve while growing their GDP and paying the usury to their masters, everything would be fine. Good luck with that.
Exactly, austerity just means transfer more and more of your wealth to us (French/German/Swiss banks) without ever repaying your loans. I think under any realistic appraisal of the Greek situation you would find that their debt load would continue to increase even as they implement the austerity programs. So after all that pain, suffering, and austerity the Greeks will find themselves owing more money than wihen the whole mess began.
Transitory.
And this is all a surprise to us here at Zero Hedge. I don't think so. Obama to speak soon, market tanks.
You're kidding me, right? Does Obama have to get in front of us blabbing about something every single fricking day?
cue greece bank run in 3.... 2.... 1....
If I had any money in any EU bank right now I would be scared to death.....there has to be banks runs..we just are not hearing about it...
But I heard ..that Greece, poor , poor Greeks... would become ---slaves--- of the Fourth Reich? WTF!!
Greek 5-yr CDS up 440, not that it matters much
http://www.cnbc.com/id/38451750
Why does Obama even bother. Now look at this market. Day lows. 0 stocks outside of miners, as usual. And a little confetti.
my big fat greek default
Is there any particular reason why these banks are holding Greek Debt in the first place?
if everything okay, higher yields then german bonds.
if greek bonds fail, they will be bailed out anyway.
thats why.
Still too risky and any two-year old knew that Greece is on a downward spiral.
Still too risky and any two-year old knew that Greece is on a downward spiral.
yup. I know why French banks are in trouble. Because German and French companies pushed the Gr gov to take on
massive public works and purchases of armaments, so that those two could keep their
economies going.
The enticement was offshore kickbacks to politicians that those two just added to
the final bill that the Greek public has to pay.
In order to finance the whole thing, French and German banks bought Greek gov bonds as
collateral for the loans given to Greece. In the short term, everybody wins, but in the LT....
So, the public in Greece knows this is going on and can do nothing but wait for the implosion.
Greece (and the other PIIGS) have no incentive to clean up their act. If Merkel will enslave her people to pay for them, then why should they stop?
Bailing out Greece is a incredibly stupid idea because the rest of the PIIGS will see that and continue to fuck around. Then when a big boy goes down (Spain or Italy) they will have to print up trillions to save them.
see my point above. This is firstly a marketing job by northern Europeans to aid
employment at home, adding on bribes to seal the deal, and then their bankers
have inflated the debt and then gambled on it (CDOs, derivatives) and they're over-leveraged.
If it wasn't for lax banking rules, we wouldn't be talking, here.
Although all politicians are thieving bastards, Greece's politicians are not
able to stand up to pressure from the US, German, UK and French politicians to buy their shit.
They can be bastards.Try living in a small country, and you'll see.
So, those 'advanced' 'hard-working' countries are run by corrupt politicians as well.
You just can't see it because you're looking at the wrong numbers.
Just picked up some weekly BAC $7 puts for 2 cents. Lets roll bitches!!!!!!!
Germany wants to take place of Greece and become the new G of PIIGS
Why does anyone keep buying Greek bonds in the first place. The buyers of their bonds are just bringing this trouble upon their own heads.
Wait...you mean 100% yield is a BAD sign?!?! I had it backwards. Oh crap...
Dont worry Obama is monitoring the situation
Tyler....
"...
ATHENS (Dow Jones)--Greece's government Friday denied that it had any plans to default at the weekend, dismissing market talk of such plans as "rubbish."
"These reports are rubbish," a Greek finance ministry official said.
Earlier Friday, financial blog Zero Hedge reported that there was talk in the market that Greece was planning to default over the next two days.
-By Alkman Granitsas, Dow Jones Newswires; +30 210 331 2881; alkman.granitsas@dowjones.com
..."
Lock the door and reach for the security guards....Zarko, and Merkel might want to talk to you
If they deny it then it must be true.
When has ZH ever been wrong?
Yes Sushi, denial by these types always signals that the rumor is true, otherwise they would just ignore the rumor.
Even more impressive that ZH posting a rumor (Chatter) now elicits a response from the Greek Government.
The growing popularity of ZH concerns me. How do we know that the Tyler's are not being silently eliminated and replaced with government agents?
The mysterious disappearance of Meth Man probably means he figured out the plot and was sanctioned, with extreme prejudice.
Is that you Tyler? If so, say something too smart to come from a government employee.
Nahhh, it is just a kick ass site. Besides, we are all Tyler Durden, right?
The Greek denials are too funny. That clinches it. That's what every government says just before they go tits up.
Greece is the one with credibility problem and it's up to them to prove they're not about to default. ZH with it's brilliant analytics and info is proving to be the global truth machine. Rock on Tyler.
While we wait for silver to be the stake through the heart...
http://search.messages.yahoo.com/search?.mbintl=finance&q=wynter_benton&...
http://seekingalpha.com/article/276050-the-plague-of-greek-debt-punishes...
Now back to our regularly scheduled program.
Beware of Greeks bearing denials
If Trichet were half as good as Bernanke, he could fix this in 30 minutes.
You have to give credit where credit is due: so far, check one for Dylan Grice in his lastest piece on how it unravels. Of course, check twenty for ZH.
Ironically the Greeks have the perfect word for this.... PATHOS...... Suffer!!
more like bathos. blood bathos
a Greek pun - I get it
They better prepare for a hundred percent loss. No exaggeration.
If the germans believe the greeks will make any payments at all without fresh new loans the germans are delusional.
If the greeks believe they can default and the german people will still send money to them, then the greeks are delusional.
They go back to their currency and print until it burns out.
Probably true Tctroll, but I have to disagree with your faultless logic based on observation.
The pattern so far is no fiat tab is too big to pick up as long as the can gets kicked. Absolutely incredible sums have been thrown around to kick the can (and buy gold). That is highly unlikely to end this weekend.
Your prediction is logical, but the actions taken so far are not. Case in point, destroying the Swiss franc.
None of this makes any sense unless you ascribe to the idea that the can is being kicked to acquire gold.
A rumor is not a fact...until it is officially denied.
Sounds like we just got confirmation.
Is it possible that the selloff in gold this morning was related to the greek default ; Perhaps there was some selling - as profits are usually taken from the best performing assets to cover losses, margin calls etc. ??... thoughts ?
My guess is it was a preemptive strike, the beginnings of an effort to keep gold from ramping over the weekend. I see margin hikes coming, and lots of lovely physical going into Smiddy's victory garden.
The reason the central bankers are taking the money from the people and the taxpayers and giving it to the investment bankers is because the people have no representation in the Congress or in their governments. Karl Denninger on Market Ticker today unravels the "sound money" scam in today’s commentary, Obama And Republicans Blow Bankers, America, with this response from If :
_________________
Wouldn't this be considered financial terrroism? Aren't the banks basically saying you better let us do our business as usual or we will bring your country to financial doom?
" In a recent flurry of letters to the Basel Committee on Banking Supervision, which is in the process of setting new rules for the largest global institutions, various banking groups warn that higher capital requirements -- tantamount to putting limits on leverage -- will reduce credit availability and stunt the economy’s growth."
----------
"We're on the way to a worldwide financial dictatorship governed by bankers," said Peter Gauweiler, German Bundestags Representative (CSU), in an interview published Monday in the Welt Online. "We don't support Greece," he said. "We support 25 or 30 worldwide investment banks and their insane activities."
http://market-ticker.org/akcs-www?post=193858#discuss
On our way? LOL, where has this guy been, living in a cave?
i'm starting to relize that there will be no 'big bang' resolution to this - but rather 40 years of foreclosures, bankruptcies, bailouts, lawsuits, 'austerity', liquidations, etc. etc. etc. Really, the pefect environment for traders - especially those with inside connections.
this is the way the world ends
this is the way the world ends
this is the way the world ends
not with a bang, but a wimper
I agree, but I’d reduce your time frame to two or three months.
I feel bad for the hard working Greeks that will suffer from this mess
You actually found one?! WOW!
The Greek middle class is no more responsible for George Papandreou’s socialism than America’s middle class is responsible for Barack Obama’s socialism. Socialism thrives on manipulated mob rule, on “democracy,” on the non-producers who can vote themselves the treasury.
Greece is suffering from Keynesian socialism, designed and executed by the bankers, the same as America. It thrives on mob ignorance and greed.
Papandreou is an international socialist and scion of a Socialist dynasty whose father helped erect the sprawling Greek welfare state when he was prime minister in the 1980s. He now presides over the culmination of his father’s policies - "a sinking ship.'' Today he’s delivering up his country’s infrastructure to the bankers, as are Barack Obama and Ben Bernanke.
Not only is Papandreou prime minister of Greece and leader of the Panhellenic Socialist Movement (PASOK) party, he is president of The Socialist International (SI). Papandreou stressed at the UN summit in Copenhagen on December 18, 2009: "At this time, we are observing the birth of global governance. We must, however, agree to an obligation and be committed to carrying this out.”
It is an error to blame this on the Greek people. People everywhere respond to the opportunities and the choices they are given; the bankers in Greece as in America keep the choices limited to bankers win versus bankers win.
you're too quick to forgive. The Greek people of all classes got exactly what they wanted and voted for, just like Americans. Now it's time to pay the piper (or the German or Chinese, as the case may be).
Huh? You think Greece is going to pay debt that it cannot pay and whose legitimacy was never questioned. When a proper and patriotic Greek government takes over, they will not starve their people to pay the bankers. The bailout has been for the sake of the banks.
Obama is not a socialist! Even Papandreou who calls himself one is not. Papandreou has imposed the harshest austerity measures ever imposed on an industrialized nation. Socialists do not deprive their people of basic needs to pay the bankers. The theory behind austerity, apparently, is that if you take away from the working class and increase unemployment, eventually they'll be happy to work for peanuts. That is an ideal workforce for the big corporations, not socialists. G-Pap's party gave benefits to people in the past, not because of their "socialist" ideology, but to obtain votes. They are a party of corruption, as is likely the other party that has been in control in Greece. As for global governance, yes, he seems into that and it is freaky.
Having said all that, I agree with your main point-- that the Greek people were not given much of a choice.
Thanks! for the excellent comment. Tyrannical power, unfortunately, can be practiced by socialists as well as monarchs and crony capitalists; it often puts on any hat that’s necessary to stay in power. Hence, Papandreou can be anything necessary to work with the bankers in Greece, while Merkel in Germany, who is not a socialist, is yet the bankers’ pal, a banker puppet for the socialist Keynesians.
V. I. Lenin, however, was not your average turncoat. His philosophy was direct: Shoot the Kulaks and the industrialists to grab state control of the means of production.
Lenin addressed the Congress of the Soviets, November 8, 1917, with these words: “We shall now proceed to construct the Socialist order.” And "construct" it he did.
During Lenin’s and Stalin’s oppressive reigns, upwards of 60 million innocent people – men, women and little children - died.
Wrote Lenin in The Imperialist War: “We understand the impossibility of eliminating wars without eliminating classes and creating Socialism, and in that we fully recognize the justice, the progressivism and the necessity of civil wars, ie., wars of an oppressed class against the oppressor, of slaves against the slaveholders, of serfs against the landowners, of wage-workers against the bourgeoisie.Wrote Stalin in the New Soviet Constitution, p. 11: "Our Soviet society has succeeded in achieving socialism, in the main, and has created a socialist order, i.e., has achieved what is otherwise called among Marxists as the first or lower phase of Communism..."
Yes, and the same can be said for the hard working Germans and Americans, et al. It's a worldwide rape of the world's middle men, of the producers that raised the world's standard of living, of the environment that allowed private market economies based on free enterprise supply and demand that produced the American Dream... I believe free - and oppressed - men soon will rise en masse to prevent that dream from being stolen.
Now this is joke of the week.
Average Greek schedule:
Monday: Gathering bonus for being on time and washing hands. Sleeping before and after lunch.
Tuesday: After notice from boss about not working hard enough, go to strike for reminder of day.
Wednesday: Go and file papers showing that for last year he earned 3 euros and 7 cents. Pay his taxes with 24 eurocents and empty wine bottle.
Thursday: Stop strike and spend whole day with their union boss, explaining how awful when your direct boss does not appreciate your hard work.
Friday: Join riots when asked by friend, leaving note at work desk.
Saturday: Drink well deserved wine and eat cheese. Wake up with goat in the bed and kick it out.
Sunday: Order granite tops for villa online to avoid paying mroe taxes.
Why don't you go to a union protest in Greece and say that? I bet the cat will get your tongue.
Mayhem and chaos and Monedas got a front row seat at the Coloseum ! See ya there ! I'm to the right of the Emperor's box ! I'll be wearing my "FRN" green toga sans underwear....thanks for asking ! Monedas 2011 Feed the Fiaters to the Kitties !
Greece has long ago slipped on that razor and is spliced and diced. The Germans et. al have merely extended the Inquisition-style torture.
Hey at least the Greeks ran game on the EU for this long! That alone ain't no small leveraging feat!
Emotional terrorism blackmail and inverted Stockholm syndrome -- the best of the best!
Many, many citizens of this planet will suffer. It is very sad.
Tough to short this market, all Bernank has to do is to start chanting and roll his beads, and the market jumps 250 pts.
You mean the Socialist cake walk is over ? Monedas 2011 It's worse than I hoped for !
On a serious note, anyone feeling blue about the future should consider the following:
It is our nature. Do the lemmings grieve when their population peaks and then crashes? Lemmings can't hold a candle to humans. Everything we do peaks and crashes, music, literature, culture, fads, economies, populations, and civilizations. This is the lesson of thousands of years of human history, but everybody thought, this time is different. It can't ever be different, because the phenomenon is built into our DNA.
It's been a hell of a run, but it had to end sometime. Holding it off until we have 14 billion mouths to feed would just make it worse.
Ein Haarschnitt war überfällig.
A haircut was overdue.
Fuck compensating the banks! For Christ's sake stop this madness. A bad investment was lost. Boo Hoo Hoo.
Corruption and moral hazard are literally destroying the system. DISCIPLINE is what is needed, starting with the discipline to tell investors to fuck off and book the losses.
"starting with the discipline to tell investors to fuck off and book the losses."
Amen brother, for fucks sake why dont bondholders have to take a haircut like the rest of us mere mortals?
In a truly free market no one bails out an insolvent bank,business or country.But hey this is a Fiat world ruled by the monopolies that control the goverment.Let the chips fall where they may.
They go WHEEEE, WhEEEE, WHEEEE all the way home. And here's Johnny, Carnak says euro goes boom, gold goes zoom, banks are doomed and the Bernak get's a pink slip.
I knew that we were going to pay more taxes for nothing.
Good news, finally.
Operation Anal Torque shall commence
Just because Bernanke has been successful at levitating the market with his breath farts up to now doesn't mean he can continue to do so. We are all so trained to say "Oh well, events don't matter because Bernanke can make anything he wants happen" that when the day comes that he can't make things happen - and that day is coming soon - a lot of people are going to be caught with their pants down.
Ask yourself - does this asshole really look like Superman? I think we're all a little bit too much in awe of his super powers.
hat tip to all paper shufflers who plan on going home long paper this weekend.
Indeed. Long holders of stock are probably going to get creamed. The real question is gold. Either they let it explode upward or they sit on it and crash prices $200 or so. I think the later because I know what I'd do if I were them, but will take my lumps if I'm wrong.
I think any default will be 100%.
Why not?
If they are gonna hate you, it doesn't make any difference, although I guess the Greeks could say it is only a 30% haircut and then in reality make it 100%.
It wasn't too long ago when Bank of America was asked to come up with a contingency plan.
Maybe there's a connection here?
Charlie Bravo
They got their failed contingency plan...his name is Warren.
My understanding is that Citigroup and JPM are in far worse shape exposure-wise. As in trillion+ exposure.
It is in the hand you're not watching that the trick resides...
Also recall the huge payoffs to the European banks from the U$$AA+ bailouts of recent years. So it's a TransAtlanticClusterfuck of epic proportions.
Yes, and they will shore it up with funny money and spin it so they can continue to kick the can.
Citi and JPM are not going anywhere just yet. This conspiracy is nowhere near done.
Still its very quiet on the market side....only a 295 point drop.....I bet the Goldman Sachs folks are calling Bernanke to make sure they get thier CDS payoffs in full.....
I suppose with Greece giving the Germans the Greek treatment, at least Olive Oil make the coming and going easier.
But cry no rivers for the Germans. It's all part of the plan. Reich number 4 is well under way.
V
yuck! Only in America?
The period between the two world wars saw banking processes in Germany that developed fundamentals that appear to be eventually used for the establishment of fiat banking in the United States. Fiat banking makes world government possible; fiat banking allows the central bankers to finance war, be they German wars or American wars.
The first quote below regards the present; the second quote, the past. I ask, has anything changed?
I quote from Jerome E. Roos:
“Meet Jean-Claude Trichet and Josef Ackermann. The former is the departing head of the European Central Bank and recently was ranked one of the five most powerful people in the world by Newsweek. The latter is the head of the largest private bank in the eurozone, Deutsche Bank, and was just named the “most powerful banker in Europe” by the New York Times. Neither was elected to run the economy. Yet, together, they do.
“In fact, both men have been instrumental in shaping the EU policy response to the crippling debt crisis that continues to haunt the eurozone. As the Times reported in a powerful feature today (June 15), Mr. Ackermann ‘is at the center of more concentric circles of power than any other banker on the continent.’”
Ackermann is Chairman of the Management Board and Group Executive Committee of Deutsche Bank AG and is a Steering Committee member of The Bilderberg Group, and like Trichet is Jewish. The goal of this globalist elite group is to bring about a one-world government and global financial system with a one-world currency…
More and more the threat is rising in this modern world: Either self-government is to be salvaged or what remains is slavery.
Now, here is an excerpt from The Warburgs:
“While Paul Warburg was making America safer for financiers (the Federal Reserve System),” writes John Weir in a review of Ron Chernow’s 820-page, The Warburgs: The Twentieth-Century Odyssey of a Remarkable Jewish Family, “his older brother, Max, was busy in Hamburg helping finance construction of Germany's new merchant fleet through the HAPAG company. Because the Warburg family fortune was built on financing international trade, Max Warburg naturally sought to encourage the growth of such trade. For the same reasons, international bankers encouraged the removal of tariffs and other trade barriers…”
Max Warburg, head of the German Secret Service in WWI, headquartered the family banking house in Hamburg.
Writes Weir: “When Hitler came to power in January 1933, Max Warburg was Germany's most prominent Jewish banker (who had represented Germany at the Paris Peace Conference that negotiated the Treaty of Versailles signed in 1919). He headed Germany’s most important private banking firm, and was a member of the ‘general council’ of the nation's central bank. In March 1933 he approved Hitler's decision to name Dr. Hjalmar Schacht as president of the Reichsbank. The document naming Schacht to this post is signed by Chancellor Hitler and President von Hindenburg as well as the eight members of the Reichsbank ‘general council,’ including Mendelssohn, Wassermann and Warburg…
In 1936… (three years after Hitler took power), the M. M. Warburg bank in Hamburg was still profitable. Among other lucrative connections, it was still disbursing interest payments to bondholders for the giant Friedrich Krupp company of Essen. As Siegmund Warburg wrote in July 1936: "M. M. W. and Co. are still remarkably untouched by the Nazi situation and the business is doing well." Even in 1938, notes Chernow, the Warburg bank was turning a profit.
http://www.ihr.org/jhr/v15/v15n5p33_Weir.html
In 1938, Hitler occupied Austria; in 1939, Max Warburg was allowed to sail to New York, funds intact.
also: "Crude reserves in Norway are exhausted, people who had once seen a barrel of brent and who spoke on condition of anonymity reported."
Finally Europe is on the right track!
Liquidity and other issues in EU, surprise debt ceiling vote last night and 9/11 - something may be going down this weekend -
Amazing they would make an official comment that they are not defaulting.
The "chatter" knows.
American pussies just continue their QE programs because challenging the banks might actually require lifting a finger. Germans got more balls now.
"Never believe anything until it has been officially denied."
-Sir Humphrey Appleby
So Germany is planning for a Greek default? As opposed to what? Sitting around saying it'll never happen and have no plan for it? All of the large EU nations will have run this plan multiple times over the past year. They'll keep throwing money at the problem until they wager that Greece going tits up won't cause a tsunami. Which is why Greece most likely won't default. Greece'll get plenty of harsh words thrown at them but in the end the EU/IMF/US will cough up the cash as there's no other choice for them.
Greek 1 year bond yield is trading at 97.96% as of 11:59am eastern up 3+% from yesterdays' market close. If the ECB even attempts to buy those bonds Europeans should roll out the guillotine for the ECB banksters.
Look out below!
Bloomberg just mentioned ZH re Der Spiegel. Matt Miller.
Do try to get deeper into this. It is not just a Plan B, it is law! Find someone other than idiot Googe to read the Gesetz zur Restrukturierung und geordneten Abwicklung von Kreditinstituten http://www.buzer.de/gesetz/9536/index.htm
well Greeks, OPA!!!!!!!!!!!
Driving home for Christmas.