Greek Debt Deal Rejected As S&P Begins European Bank Downgrades

Tyler Durden's picture




 

At least they were kind enough to wait until the close:

  • EURO ZONE FINANCE MINISTERS REJECT OFFER OF GREEK PSI REACHED WITH PRIVATE BONDHOLDERS, ASK NEGOTIATORS TO CONSIDER COUPON ON NEW GREEK BONDS BELOW 4 PCT-EURO ZONE SOURCES - RTRS
  • EURO FALLS VERSUS DOLLAR AFTER EURO ZONE FINANCE MINISTERS REJECT GREEEK PSI OFFER

Translation: Greece demands that the coupon on its fresh start 30 Year bonds to be below 4%, or roughly in line with US 30 year paper. Good luck guys!

But, but, Marathon promised... And making things even worse, here come the long overdue European S&P bank downgrades

  • CREDIT LYONNAIS CUT TO A FROM A+ BY S&P
  • BNP PARIBAS OUTLOOK NEGATIVE BY S&P; OFF WATCH NEGATIVE :BNP FP

Sarc-o-bot (that's Sarcasm, not Sarakozy) screaming: "This is all priced in. Buy buy buy."

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Mon, 01/23/2012 - 17:59 | 2090436 Divided States ...
Divided States of America's picture

Greek salad anyone?

Mon, 01/23/2012 - 18:02 | 2090450 redpill
redpill's picture

I wonder what Lucas "Nero with a gyro" Papademos will do now?

Mon, 01/23/2012 - 18:20 | 2090531 Jack Napier
Jack Napier's picture

Quoted from: http://www.zerohedge.com/news/greek-debt-likely-unsustainable-even-hairc...

"Greece has enough funds to continue until the March redemptions (€14.4bn redemption on 20 March 2012). However, without the PSI and further EU resources, there is not any room for the March redemption to be paid. As such, March Greek redemption is implicitly the hard deadline for Greece."

So they've still got two months. LTRO is in 1 month. Just another day of dream theater.

Mon, 01/23/2012 - 18:05 | 2090463 ACP
ACP's picture

Nah, it got tossed.

Mon, 01/23/2012 - 18:07 | 2090472 The Big Ching-aso
The Big Ching-aso's picture

 

 

Rejection of a deal originally based on hallucinogenic obfuscation.    The whole phuckin world needs smelling salts.

Mon, 01/23/2012 - 18:08 | 2090474 VanillAnalyst
VanillAnalyst's picture

Below 4 percent? bwahahah

 

I mean... auto loans are at 4 percent. And I never bought a car that embezzled the shit out of me and refused to pay taxes. Pass.

Mon, 01/23/2012 - 18:09 | 2090482 JLee2027
JLee2027's picture

Loan rates may go negative before this is over.

Mon, 01/23/2012 - 18:14 | 2090503 Cheesy Bastard
Cheesy Bastard's picture

If you buy a Volt.

Mon, 01/23/2012 - 18:22 | 2090538 walküre
walküre's picture

Are the Greeks actually calling out the US.gov and her debt financing? THIS could get really nasty when the Greeks start calling a spade a spade and go all in, all anti-american finance.

This is act 2 of the Drama. The introduction of the Antagonist.

Mon, 01/23/2012 - 18:12 | 2090495 zebra
zebra's picture

with thousand "fukushima" island dressing please

Mon, 01/23/2012 - 18:19 | 2090528 johngaltfla
johngaltfla's picture

So the drop in the 1 year Greek yields to 428% isn't bullish? Sheesh, who would have ever guessed....

Mon, 01/23/2012 - 18:31 | 2090570 slaughterer
slaughterer's picture

Well, well, now we can start the move downward to 1173.    

Mon, 01/23/2012 - 21:14 | 2090994 Buck Johnson
Buck Johnson's picture

And I will say again what has been played down to the masses but the banks and insurance companies know.  If as MICHELLE CARUSO-CABRERA  said today and other days that the CDS's aren't a factor since Greece only have 13.5 or 14 billion in bonds that if a credit even happened it would be ony for that amount of bonds.  Then why bargain at all this hard and allow more lies to go out saying a deal when there isn't a deal.  I think Michelle is wrong, truly wrong.  If a credit event happens (which will, I can't see it not happening).  Then not just 100 billion in bonds but all of Greece's bonds (over 315 billion and possibly more) will be in doubt.  You can't say that they aren't able to pay these bonds but they are able to pay those bonds, trust us.  And so what would happen is that holders of the 1/3 or more trillion in debt will have the CDS's activated and they will be able to get 100% on the dollar from the insurance companies that they bought CDS's from. 

The insurance companies and banks don't have the money, if they did then why the push for a deal.  Also after Greece, other countries in the PIIGS and outside would come into focus because if Greece with it's debt load to GDP couldn't afford the debt, that means the other can't also so it starts another run on bonds in other countries etc. etc..  So Michelle is telling a partial truth, yea 13 to 14 billion will be effected but hundreds more if not trillions will be also.

And so the reason is they are afraid of the CDS issuers not having the money and a cascade effect that will go to other countries once it happens.

Tue, 01/24/2012 - 02:46 | 2091551 StychoKiller
StychoKiller's picture

Other than that, Mrs. Lincoln, how did you like the play?

Tue, 01/24/2012 - 02:46 | 2091552 StychoKiller
StychoKiller's picture

Other than that, Mrs. Lincoln, how did you like the play?

[Edit:]  (Dopey Droids...)

Mon, 01/23/2012 - 18:01 | 2090439 Gubbmint Cheese
Gubbmint Cheese's picture

Robo crapping his pants, bitchez

Mon, 01/23/2012 - 18:04 | 2090455 ihedgemyhedges
ihedgemyhedges's picture

But, but, but Texas Instruments is up 2.1% after hours and the CEO says "we're at the bottom of the downturn".  Surely, surely, surely he wouldn't say that if it weren't true........come on Robo, tell us he ain't lyin'.................

Mon, 01/23/2012 - 19:50 | 2090761 txsilverbug
txsilverbug's picture

I think he has a broken calculator.  I wonder if there is a company that makes calculators that would be willing to shed some light on this?

Mon, 01/23/2012 - 18:39 | 2090584 Goldilocks
Goldilocks's picture

Oops I crapped my pants
http://www.youtube.com/watch?v=Nl27AZ3BzK0 (1:19)

(...with apologies)

Mon, 01/23/2012 - 18:02 | 2090445 Fips_OnTheSpot
Fips_OnTheSpot's picture

Yamas!

Mon, 01/23/2012 - 18:02 | 2090447 hyper-critical
hyper-critical's picture

BTFD!

(Buy The Fucking Drachma...)

Mon, 01/23/2012 - 18:06 | 2090459 bob_dabolina
bob_dabolina's picture

Deutsche Mark

(sell the Drachma)

Mon, 01/23/2012 - 18:07 | 2090468 DoChenRollingBearing
DoChenRollingBearing's picture

Definitely the DM vs. the Drachma.  Looks like, just maybe, the SJGR!

Mon, 01/23/2012 - 18:09 | 2090479 Cheesy Bastard
Cheesy Bastard's picture

Drachma queens and deutsche bags.  USD.

Mon, 01/23/2012 - 18:04 | 2090454 ucsbcanuck
ucsbcanuck's picture

/sarc on

Bullish. Priced in.

/sarc off

Mon, 01/23/2012 - 18:08 | 2090476 Spooky Polish
Spooky Polish's picture

/ sarc off 

 

Bullish , bulled in

 

/ sarc on 

Mon, 01/23/2012 - 18:04 | 2090456 WonderDawg
WonderDawg's picture

What a surprise. I'm stunned. Never would have seen this coming.

Mon, 01/23/2012 - 18:10 | 2090485 DoChenRollingBearing
DoChenRollingBearing's picture

Me either.  In fact, I almost can't believe it.

Mon, 01/23/2012 - 18:05 | 2090457 Joeman34
Joeman34's picture

Just default already and get it over with!

Mon, 01/23/2012 - 18:10 | 2090487 kurzdump
kurzdump's picture

Indeed, I'd prefer watching a few seaons of "The Bold and the Beautiful" non-stop instead of this crap.

Mon, 01/23/2012 - 18:05 | 2090461 DoChenRollingBearing
DoChenRollingBearing's picture

Maybe this is it!  Can we now say: "And they're off!"?

Mon, 01/23/2012 - 18:07 | 2090469 Fips_OnTheSpot
Fips_OnTheSpot's picture

the can is still alive and kickin'..

Mon, 01/23/2012 - 18:13 | 2090501 cbxer55
cbxer55's picture

But there ain't no road left to kick it down.

Mon, 01/23/2012 - 18:06 | 2090464 littleguy
littleguy's picture

Cheap holidays in the beautiful mediterranean are coming!! Yippeee!!

 

Obviously wait for the war to finish first.

Mon, 01/23/2012 - 18:13 | 2090500 Schmuck Raker
Schmuck Raker's picture

Avoid the cruises.

Mon, 01/23/2012 - 18:23 | 2090539 littleguy
littleguy's picture

Maybe, just maybe... it was an Iranian torpedo...

just saying guys!!

just saying

 

Mon, 01/23/2012 - 19:28 | 2090731 Blank Reg
Blank Reg's picture

Are you wearing a tin foil hat? You are, aren't you.

Mon, 01/23/2012 - 18:16 | 2090509 The Fonz...befo...
The Fonz...before shark jump's picture

Cheap holidays in other people's miseries

Holidays in the sun
The sex pistols

Mon, 01/23/2012 - 21:39 | 2091082 Isherwood
Isherwood's picture

World War III is already priced in...

Tue, 01/24/2012 - 11:07 | 2092344 tradebot
tradebot's picture

How much for the women?

Mon, 01/23/2012 - 18:05 | 2090465 youngman
youngman's picture

And so the story goes...on and on and on....the guy on CNBC about had a fit..."why can´t they get them all in a room and make a deal"  boo hoo hoo....

 

It still is no deal even with the deal...can´t they see that...its all for the next 8 billion or whatever they get in the next payment....then its off to a swiss bank account for TPTB..and then default....but its only other peoples money...

Mon, 01/23/2012 - 18:08 | 2090477 DoChenRollingBearing
DoChenRollingBearing's picture

+ 1

LOL CNBS guy throwing a fit...

Mon, 01/23/2012 - 18:20 | 2090521 walküre
walküre's picture

Must be frustrating for Wall Street shysters and shills to see that their tactics don't work outside of the US.gov controlled boardrooms.

"make a deal" with whom? the devil? no thank you.

Good to see that the whole world doesn't operate "The American Way". US Congress rolling over and sending unlimited tax payers cash to the banks. It just doesn't work the same way in Europe. Gosh, darn it.

Mon, 01/23/2012 - 18:20 | 2090522 Ropingdown
Ropingdown's picture

Why didn't I think of that?  Let CNBC commentators buy the PIIGS bonds.  It sounds like they volunteered.

Mon, 01/23/2012 - 19:59 | 2090769 Blank Reg
Blank Reg's picture

YES, YES! And while were're at it, why don't we get a bunch of doctors in a room and don't let them out until the find a cure for cancer! I think he's on to something!

Mon, 01/23/2012 - 18:06 | 2090466 Sandmann
Sandmann's picture

Timeo Danaos et dona ferentes

Mon, 01/23/2012 - 18:52 | 2090625 Peter Pan
Peter Pan's picture

Think it's time we changed it to beware of Greeks seeking gifts.

Mon, 01/23/2012 - 18:10 | 2090481 falak pema
falak pema's picture

greek theatre until tomorrow...the lady keeps crossing her legs, now you see it now you don't. Play on.

Mon, 01/23/2012 - 18:10 | 2090483 The_Emperor
The_Emperor's picture

Oufff just default for god's sake :)

 

http://theimperatore.blogspot.com

Mon, 01/23/2012 - 18:10 | 2090486 distopiandreamboy
distopiandreamboy's picture

Greece's new national motto: Caveat emptor

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