Greek Deal Done? Not So Fast Says IMF

Tyler Durden's picture

Update - It gets even better: Greek Deal Lacks Detailed Paperwork For Decision - DJ. What, 50 pages of promises is not enough.

The Greeks "pledge" that they will grow their economy in 2013? May as well pledge unicorn cab cabs for all Germans to their southern province in perpetuity. Yet somehow this is sufficient to squeeze the EURUSD higher as a "deal is done." Perhaps, but not so fast. As we speculated, the Troika not only does not want to fall for the same Greek BS any more, but frankly wants it out (and Germany votes on the bailout package tomorrow) - but has to do it diplomatically. So here it comes:

  • IMF SAYS IT'S NOT FORCING AUSTERITY ON GREECE AS TALKS CONTINUE - BBG
  • RICE SAYS IMF "WELL AWARE HOW DIFFICULT' IT IS FOR GREECE - BBG
  • IMF'S RICE SAYS IMF MINDFUL OF `HARDSHIPS' IN GREEK PROGRAM - BBG
  • RICE DECLINES TO SAY WHAT IMF SHARE OF NEXT GREEK LOAN WILL BE - BBG

But the most ominous of all:

  • IMF SAYS 'PRIOR ACTIONS' LIKELY TO BE REQUIRED BEFORE FUND OK OF NEW GREEK LOAN PROGRAM - DOW JONES

By the way, dear US taxpayer, the IMF - that's you.

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redpill's picture

END THE IMF, END THE FED, END THIS CHARADE

Silver Bug's picture

Flee why you still have some assets Greece! Get out of the EU, for the sake of your children.

 

http://silverliberationarmy.blogspot.com/

The Big Ching-aso's picture

 

 

"Dear Loan Officer Reynolds,

As requested by your office that I submit this in writing, I pledge to make $5 million dollars more next year.   This should assuage your expressed concerns about how I'll be able to pay for my application to purchase respective vacation house in the Hamptons on our agreed upon terms of 6% interest on a 40-year mortgage amortization schedule.  

Sincerely,      

Bob Sakamano,  McDonald's French Fry Night Shift Supervisor, East Hampton"

 

 

 

 

pods's picture

Seems that Confessions of and Economic Hitman was not a work of fiction.

Morpheus, if you are listening, please come and get me!

pods

TruthInSunshine's picture

Official prediction:

They'll formally wrap up a bailout of Greece by Monday or Tuesday.

They'll formally wrap up a bailout of Portugal, Ireland, Span & Italy within  6 months, and probably sooner.

Every country on the list will default under the terms of the amendments to the Eurozone Treaty that allow for the bailouts within 2 years, at most, and many will default well under a year.

Every PIIGS nation is already now in recession if one were to use an honest GDP metric, and these recessions will deepen post bailouts, which will make it even less likely they can significantly make good on the core requirements of their bailout provisions.

Germany will see the largest number of incumbents voted out of office in its post WW-II election history, with anti-EU legislators being elected in massive numbers.

The ECB will have to print a minimum €2.5 trillion to €3 trillion over the next 18 months just to recapitalize the Eurozone Member banks for a long enough period of time to prevent governments from running out of funding. On top of this, an additional €3 trillion will have to be printed during the subsequent 12 months in order to float social programs among PIIGS members during what will be a period of highly contractionary economic activity to avoid having another public Eurozone Debt crisis forcing the types of negotiations and the process we're seeing right now, prior to mid 2014.

Inflation will run so high that it will bring about constant 'no confidence' parliamentary votes throughout the Eurozone Member states for the foreseeable future.

The Eurozone will either be dissolved or dramatically shrunk by 2015.

The U.S. will see a credit contraction at least as large as it saw during 2008, and US and UK investment banks will suffer huge losses as a result of the European crisis even given that the ECB is going to print, at minimum, an aggregrate 5.5 trillion euros, (but probably closer to 20% more than that) because these euros won't be used to recapitalize non- EU based banks, but rather flow nearly exclusively to try to and recapitalize EU banks and support PIIGS social program spending over the next 2 1/2 years, and US and UK investment bank unhedged losses will run deep.

The ECB balance sheet will dwarf the Fed's balance sheet within 12 months, but contrary to popular investor opinion, there will many forces acting to seriously restrain Bernanke's ability to do what he and the other doves on the FOMC want to do in the form of using the ECB's newfound status as bad central bank as an excuse to significantly expand the Fed's balance sheet (one of which will be an even more contentious U.S. Executive Branch-Legislative Branch relationship, and another being cost-push inflation in the U.S. running very hot despite economic malaise).

LawsofPhysics's picture

Relax, the re-routing of real goods and services is going to end a number of things shortly.  hedge accordingly.

carguym14's picture

Hmmmm,which candidate would be the best hope for doing that????

GeneMarchbanks's picture

Great twist, too bad I stopped paying attention in 2010.

Irish66's picture

I could just throw up this morning

EyeQ's picture

i've had stock morning sickness for the past 4-1/2 months!!!!!

CrimsonAvenger's picture

So based on precedent in the market, in another 4.5 months you'll give birth to a fully developed fraud?

ElvisDog's picture

Republican congress will not vote any more bailout money for the IMF.

SeverinSlade's picture

At least not until Europe pulls a Hank Paulson and says refusal to bail out Europe will result in Martial Law in America (which is inevitable anyway).

Coast Watcher's picture

You mean we don't have it already?

Vincent Vega's picture

HA! Who says any money to the IMF has to be voted on by Congress???

Red Raspberry's picture

Not until Romney is elected that is.

Red Raspberry's picture

Not until Romney is elected that is.

john39's picture

don't think that is going to happen.  the point of the republican puppet show/primary is to make sure that bwak obomber is re-elected.   why would the fascists change horses when they don't have to?  so far obomber is getting the cabal's dirty deeds done, so he is the man, until they need to throw him under the bus.

LawsofPhysics's picture

Right, at least not until the appropriate pork is attached.  Still believe in that old two-party lie?  Same as it ever was.

Squid Vicious's picture

who cares what the IMF says... BTF 3 handle dip!!!!

hedgeless_horseman's picture

 

 

+100,000

We will keep running the Packer sweep until they stop it.

Squid Vicious's picture

Exactly! Naz green, Dow green, Spooz will be green in 3..2..1... TOUCHDOWN team Ben Shalom!!

Roland99's picture

oh, so the IMF is just saying they'll give Greece a reach-around?

Gene Parmesan's picture

Or is this the IMF just looking to soften the perceived impact as viewed by the "citizens" on the ground in Greece and Germany? Dithering tends to lead to disinterest, or at least to confusion.

CreativeDestructor's picture

Sing LTRO just like YMCA, sounds fun!

taniquetil's picture

Eurozone Resolution, Coming to a Theater near you in 2012

 

Directed by M. Night Shyamalan

Cunning Lingers's picture

What else is valuable in Greece?

They will likely demand the mortgage of all valuable state assets as collateral if actions not met.

 

 

Flying Dutchman's picture

Ha, Ha, Ha,

The Euro; It’s our currency, It’s your problem.

I like your former president.

hangemhigh77's picture

Offer the German's a gyro

Dre4dwolf's picture

lol so all we have to do to grow is "pledge" to grow.

 

In that case I pledge to grow as well.

RobotTrader's picture

Gary Busey files for Chapter 7 BK....

 

LOL....

Vincent Vega's picture

He must have been following your investment advice.

Hulk's picture

He should have purchased PM's and a helmet, instead of Blo and hookers...

 

LOL...

flyonmywall's picture

The only thing that they are concerned about is to not violate the first rule of investing "Thou shalt not lose principal". The only problem is, this rule is being enforced on the backs of the Greek people, their elderly, their sick and their children. Sooner or later, something is going to have to give. You can't have a financial circle jerk forever, without somebody blowing a load at some point.

The question is, whose face is it going to hit?

 

pods's picture

Even worse, this will result in the wholesale looting of anything in Greece.  

I do hope that this shows the world exactly how the banksters, who whip money out of thin air and charge everyone interest to borrow it, really do need a good dose of humility.

Preferebly @3000 fps.

pods

hangemhigh77's picture

Put George Bush in as prez of Greece, the current guy isn't dumb enuf

alien-IQ's picture

According to the Dutch and German finance ministers: "there will be NO deal today".

So it looks like this should push the EUR/USD and /Es higher since it means that the next deal will surely be the perfect deal.

This has gotten so very tiresome.

Gubbmint Cheese's picture

Whatevs.... Tired of all of this bullshit. I get it I get it Robo is right: Buy stocks! Lever up, the trend is your friend blah blah blah. Okay done - Now how do I get me one of them million dollar bonuses?

Schmuck Raker's picture

"...how do I get me one of them million dollar bonuses?"

I'll give you a hint:

It rhymes with 'Glee Fads'.

Schmuck Raker's picture

WTF?

""An important initial step was to get the agreement among the coalition leaders in Athens and the next step is to continue the discussions on that basis," IMF spokesman Gerry Rice told a regular press briefing." - RTRS

So...it's not only NOT OVER...it's JUST GETTING STARTED???!!

vegas's picture

They should put this shit in a reality TV show. Entertainment at its finest. Maybe then sheeple would wake up to the fact that all the emperors of europe have no clothes.

 

http://vegasxau.blogspot.com

Money 4 Nothing's picture

Soo.. When is the next meeting for the new plan? /sarc.

 

The only noteworthy news I have heard out of the Blurr -O- Zone was that Greece, Italy and Portugal may go broke.  

yogibear's picture

Go long on boiled rope when this all ends. The government leaders are just puppets for the bankers.

Greece is defaulting one way or the other.  Just pick your time frame.

At least the US is better. Our citizens have guns and ammo. All those drones will be useless.

Calmyourself's picture

"IMF SAYS 'PRIOR ACTIONS' LIKELY TO BE REQUIRED BEFORE FUND OK OF NEW GREEK LOAN PROGRAM "

A little slow today, what is this supposed to mean exactly as it is phrased awkwardly? 

Money 4 Nothing's picture

Calmyourself, I will break down the cryptography of the "message".

 

"IMF SAYS 'PRIOR ACTIONS' LIKELY TO BE REQUIRED"

Do nothing as usual..

 "BEFORE FUND OK OF NEW GREEK LOAN PROGRAM "

Schedule another meeting.