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Greece - No PSI
Via Peter Tchir, of TF Market Advisors,
As expected banks couldn't agree to a haircut. Now Greece, the EU, the IMF, and taxpayers, will pay out about about $11 billion of principal and interest before the end of the year. I don't know who holds the bonds maturing this year, but some of that money is probably finding its way into banks that survive solely on the grace of central bank funding.
The next big payout is due in March. I suspect banks will once again get a nice trip to Athens. Enjoy some food, some sightseeing, and "in spite of great efforts" once again fail to reach a deal, and wait for the Troika to pay Greece so that they can get paid again. If my travel brochures are accurate, it will be more junior bank negotiators then because the senior people will save themselves for the May negotiations when the weather should be just perfect for a quick getaway to the islands.
Why would any bank agree to a haircut when they are getting unlimited virtually free funding on the one hand, and the Troika has shown zero willingness to stand its ground and force a default?
Just as we wrote back in June, we suspect the banks willingness to offload as much of their GGB exposure in basis packages has lead to a significant amount of the non-Troika-owned GGBs being held in hedged positions and at the mercy of hedge funds earning from the Bond-CDS position (and of course unwilling to accept non-CDS-triggering haircuts voluntarily). We also note that over the last week or so has seen the basis package cost rise modestly as demand for that pair has picked up.
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The remaining Greek bonds have no doubt been repo'ed with the ECB already at par.
Collateral quality? What's that?
ZEROHEDGE MADE IT ONTO THE TELEGRAPH.CO.UK WEBSITE!!!
http://www.telegraph.co.uk/finance/debt-crisis-live/8952527/Debt-crisis-live.html
nice find! great exposure for ZH!!!
Taking the fight to the criminal's home turf.
Geebus. That Merkel is one ugly buggly.
They've been openly posting ZH tweets and quotes from ZH for some time.
What's more, it is clear that many of the articles on the Financial pages and blogs are essentially re-treads of ZH articles which the Telegraph journos have read and re-hashed for their readers.
They can quote this.
Greece burns 400,000 barrels of oil each day. They pay Brent $110 for all of it. Annualize it and it adds up to a number that is 5% of GDP, drained out of Greece each year.
How in hell does anyone expect this to work? They can never grow their way to anything with that anchor.
this is how the game works. no reason for aaccepting a hair cut when you get paid. and you will get paid, since if not you broke and financial crisis i.e. recession.
I give you an up arrow. Always. Just for the pic. Truth is, I haven't read anything you've written.
doesn't matter, me neither
That's right. Greece has all of Europe by the balls. They should start paying themselves huge bonuses, retire at 40, free health care... everything. If Europe refuses to keep bailing out, their banks go under and they lose much more.
But if the last bail-out was 8 billion, and was required for everything from gov't salaries to souvlaki dinners for those parlimentary late night sessions, where does the balance come from? As well, the austerity death sprial continues:
The country’s budget deficit continued to widen in November as an austerity-fuelled recession cancelled out much of the extra revenues the government was hoping to raise through emergency taxes, data showed on Tuesday. The budget gap of the central government widened 5.1 percent year-on-year to 20.52bn euros, according to finance ministry figures for January to November. Is the failure pressure point not closer than being reported? Maybe I'm just being naive again!Wasn't December 9th supposed to be an important day for them? They made their bond payments then... how they did I'm not very sure. Greek 10yr right now at 29.90
Or was it 12/19
The vermin are not taking a haircut. Who expected otherwise? Angela Merkel failed. Deliberately or not has yet to be seen.
Her "treaty" will assure the banks that they can collect on Greece's debt from Germany. It is Versailles x1000 and not a single shot has been fired to break Germany's back for a third time.
Was Greece setup like a Trojan Horse to blow up the Eurozone? You bet. But not without making sure first that the prize (Germany's wealth) will go to the cabal. Not even 70 years after the end of the great destruction and the cabal is coming to collect again.
There will be blood.
Agree, time for Germany to throw off it's Chains
for that you need to man up first.
We've been there before.
for starters kick out the 50K occupation troops in your territory.
I thought the EU deal said, Greece is exception; meaning Greek haircuts were at 50%. WHy this backing off? Has Merkel got cold feet???
Because after all is settled and done and Merkel played her part, the truth comes out.
Merkel is a tool of the bankers.
No final bondholder has agreed...if they don't, something called cross-default (meaning the whole Greek debt becomes due immediately) could happen!
Merkel and Sarko don't understand financial contracts.
Totally OT:
More Corzine grilling today.
http://www.c-span.org/Events/Senate-Looks-into-MF-Global-Bankruptcy/10737426222/
Witness list:
http://www.ag.senate.gov/hearings/investigative-hearing-on-the-mf-global-bankruptcy
If Corzine goes down, half the industry follows.
He will go, scott-free.
Dude, you are breaking my heart here. Why ya gotta say this? Mid way through the testilying...well...where's this guy when you need him? http://www.youtube.com/watch?v=uamjzCQEk70
I tend to agree. I just find the schadenfruede of watching him squirm to be top shelf. I am sure he would rather be molesting 6 year olds covered in puppy blood back at the compound.
His ultimate sentencing will differ to that of a molestor, by the fact that he wears a nice suit.
Stealing people's property is fine, as long as you wear a suit.
Actually i would be more impressed if the telegraph made it on Zerohedge...You have to get your scale of respect right...
If you just look at their financials....."The country’s budget deficit continued to widen in November as an austerity-fuelled recession cancelled out much of the extra revenues the government was hoping to raise through emergency taxes, data showed on Tuesday. The budget gap of the central government widened 5.1 percent year-on-year to 20.52bn euros, according to finance ministry figures for January to November."....would you buy anything new from them..and just pray you get something for what you have bought before....are going to be that stupid to buy more of their debt....are we?????? this is the bellwether of what this would is going to become...
Momma's don't let your babys grow up to be bankers.
Fucking Parasites.
What a surprise.
Too much debt and credit and and asteroid full of CDS death orbiting above. Somethings gotta give, eventually.
skewed oligarchy play, protect the banks with the FED's collusion. What a bunch of cheats.
When is an agreement not an agreement.
God I wish someone would just get on with it.
Either print €3tn or press the reset button.
Yes but print and hyperinflate, don't print and collapse!
'tis a bitch :(
Where's volume at this morning? Short interest?
QE3 is a long time away.. Bill Gross better come up with a better strategy.
haven't you figured out yet the goalis to not let the banls loose money, and to use that cheap moneyto buy sovreign debt and make the spread.
Think they're gonna get the 80 billion in February if it took 3 extra months just to cough up this 8 billion?
http://webcache.googleusercontent.com/search?q=cache:AgVGLXrhqNsJ:greece...
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