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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

Mon, 01/23/2012 - 18:12 | 2090492 kito
kito's picture

market chartist joe granville calling for a loss of 4,000 in the dow this year, starting now.  says its based on low volume. correct me if im wrong, but wasnt 2011 based entirely on low volume trading?

 http://www.bloomberg.com/news/2012-01-23/granville-says-dow-industrial-may-drop-toward-8-000-this-year.html

Mon, 01/23/2012 - 18:16 | 2090516 SmoothCoolSmoke
SmoothCoolSmoke's picture

Really? Well then, I'm root'n for Joe.    Joe!  Joe!  Joe!

Mon, 01/23/2012 - 18:12 | 2090496 Dr. Engali
Dr. Engali's picture

Hey keep your eyes over there on that tiny little nation. Don't pay attention to anything you see over here. When it all melts down we are going to blame them.

Mon, 01/23/2012 - 18:12 | 2090497 SmoothCoolSmoke
SmoothCoolSmoke's picture

Euro holding up well.   Hmmmmmmmmmmmm.

Mon, 01/23/2012 - 18:19 | 2090529 navy62802
navy62802's picture

Still above $1.30 right now.

Mon, 01/23/2012 - 18:13 | 2090499 tekhneek
Mon, 01/23/2012 - 18:15 | 2090507 YesWeKahn
YesWeKahn's picture

This will make US market decouple even more. S&P to the moon.

Mon, 01/23/2012 - 18:16 | 2090511 chinaguy
chinaguy's picture

USD/EUR still failing to break 1.30...gonna be a long week.........

Mon, 01/23/2012 - 18:17 | 2090512 youngman
youngman's picture

You know I just dropped a carton of eggs....some of them cracked....so I am having scrambled eggs for dinner...but some didn´t....and I thought...its the same as the EU....some eggs are broken and will be eaten..some eggs are good...but in the end..you will all die of a heart attack for eating them....Refrigerator Economics 101

Mon, 01/23/2012 - 18:22 | 2090534 economics1996
economics1996's picture

That was deep.

Mon, 01/23/2012 - 18:20 | 2090523 PicassoInActions
PicassoInActions's picture

either people did not get the news or it's non-news.

Market is calm and euro is moving up... wtf.

Mon, 01/23/2012 - 18:19 | 2090526 fuu
fuu's picture

0pa!

Mon, 01/23/2012 - 18:20 | 2090527 surf0766
surf0766's picture

Greece should get the same rate as the U.S. We are about the same.

Mon, 01/23/2012 - 21:58 | 2091131 Isherwood
Isherwood's picture

Yes ... 15% plus

Mon, 01/23/2012 - 18:20 | 2090533 zebra
zebra's picture

Greek will offer all investors who bot their debt with free gyro family meals.

is that bullish enough?

Mon, 01/23/2012 - 18:21 | 2090536 AC_Doctor
AC_Doctor's picture

Hedge funds lawyering up.  Let the comedy turn to a tragedy!!!

Mon, 01/23/2012 - 18:24 | 2090544 littleguy
littleguy's picture

Lawyer up bitchez.

This shiz is about to get reelz

Mon, 01/23/2012 - 18:38 | 2090582 dracos_ghost
dracos_ghost's picture

Why are they talking to Greece? It's the CDS writers that should be cutting deals here. Unless Greece underwrote themselves. Greece has no option but to go all in at this point and shake the pillars of the house of cards of international finance.

I have a feeling that this is what's going on. Greece telling creditors, go talk to the insurance guy otherwise take a cut. Creditors saying, we need you to default first then we'll talk future tranches.

CDS market is going to get crushed. Buffet, I hate to admit, was right that CDSs are financial WMD.

Mon, 01/23/2012 - 18:42 | 2090592 Calmyourself
Calmyourself's picture

Stalin, paraphrased:  How many divisions do these hedge funds command?

Mon, 01/23/2012 - 18:25 | 2090545 Poetic injustice
Poetic injustice's picture

What will happen to greek military bought tanks and planes?
Will they sell them back for 1/3 of value, or go take money from neighbours?

Tue, 01/24/2012 - 02:52 | 2091554 StychoKiller
StychoKiller's picture

You know times is bad when taking stuff from Albania is a step up...

Mon, 01/23/2012 - 18:24 | 2090546 dpr10
dpr10's picture

are people really this stupid...what is euro doing for christ sake..it should be back to mid 1.29s by now..at least..

Mon, 01/23/2012 - 18:45 | 2090603 walküre
walküre's picture

not really.

Greek debt is not backstopped by anything but Greek's own ability to repay. ECB is backstopping the Euro banks. Who has the biggest losses outside Europe?? I don't know (yet). Could be JP, could be BAC.

Greek defaulting amounts to Greece leaving the Euro which will likely strengthen the Euro further. That is the strategy imo.

Mon, 01/23/2012 - 18:51 | 2090618 dpr10
dpr10's picture

you mean DM when everyone leaves....are you really for real::)))you o mighty, can you please explain why the market has ben making new highs due to the PSI agreement::)))

Mon, 01/23/2012 - 22:31 | 2091187 roy10
roy10's picture

Greece will not leave the Euro even if it defaults. That makes no sense.

Mon, 01/23/2012 - 18:25 | 2090550 slewie the pi-rat
slewie the pi-rat's picture

well they said yesterday that maybe under 4%, so this is not unexpected that if the EU doesn't get what it wants, it will counter, here, w/ 3.5% or something, depending on how "gamey" they are

remember when they laughed @ timmah? 

big mistake?  maybe timmah "left the euro"  Hahahahaha!

this is probably getting pretty well scripted at this point

if i were writing it, i'd script in a greek petition to join the USA pretty soon.  fuk the eu!

give us your bankrupt, your angry, your onassis

maybe monaco would be nice, too?  when they're ready, of course...

Mon, 01/23/2012 - 18:26 | 2090556 RiverRoad
RiverRoad's picture

It sure works out nicely for Germany with the Euro falling; no surprise the Greek deal was rejected.  And enuff with the downgrades already:  let's start shutting some doors over there.  Too many damn banks perpetuate this mess.

Mon, 01/23/2012 - 18:27 | 2090558 dpr10
dpr10's picture

I think under 4% is just the excuse..this thing was never gonna pass...

Mon, 01/23/2012 - 18:30 | 2090564 Saxxon
Saxxon's picture

Patience fellow shorters . . . there is often an eery pause in the brave new HFT era, I don't know why . . . the worm will turn and right soon.

Mon, 01/23/2012 - 18:34 | 2090572 eric89074
eric89074's picture

95% default? Not a credit event!

Mon, 01/23/2012 - 18:37 | 2090576 Mr.Kowalski
Mr.Kowalski's picture

I fully believe that European leaders will solve the crisis and a return to prosperity is just around the corner. They keep telling me so-- therefore it must be true !! After all, these are talented people with a full grasp of the facts, right ? 

 

Prosperity is just around the corner !

Mon, 01/23/2012 - 18:42 | 2090598 drider
drider's picture

Ok boys and girls. The real talks have just began. No more foreplay!

Mon, 01/23/2012 - 19:16 | 2090688 bbq on whitehou...
bbq on whitehouse lawn's picture

I think this is the foreplay. We will see when we get the hard numbers.

Mon, 01/23/2012 - 18:43 | 2090600 Money 4 Nothing
Money 4 Nothing's picture

Uhhh.. Duh!

Mon, 01/23/2012 - 18:48 | 2090615 Peter Pan
Peter Pan's picture

By the time all is said and done, Greece will have defaulted on 120 per cent of the outstanding debt it had not so long ago, great investment by the Eurozone governments.

But on the other hand if the supposed mineral and oil wealth is proven to exist, you can be sure that bankers and their masters will then get 240 per cent of what Eurozone governments lost.

This will be another twist on public private partnership or as they say, "socialising losses and privatising gains,'

Mon, 01/23/2012 - 18:51 | 2090622 virgilcaine
virgilcaine's picture

Have to go to the Acropolis (diner) this week, to celebrate thier coming independence.

Mon, 01/23/2012 - 18:55 | 2090634 Pancho Villa
Pancho Villa's picture

What does the new interest rate matter? They are going to default on the new bonds anyway.

Mon, 01/23/2012 - 18:57 | 2090645 roy10
roy10's picture

It seems like the EU is confident that Greece doesn't matter anymore, so they're throwing it under the bus. The fact that markets are not responding to Greece would only reinforce the Germans to let Greece default.

Mon, 01/23/2012 - 19:14 | 2090679 bbq on whitehou...
bbq on whitehouse lawn's picture

No, NO, NOOO it cant be, somthing will be worked out its only foreplay....right?

I thought no one was willing to blow up the Euro. It as in everyone intrest and 60 years of contract would be down the drain.

This is what is important : ASK NEGOTIATORS TO CONSIDER COUPON ON NEW GREEK BONDS BELOW 4 PCT.

Its not over till its over.

Mon, 01/23/2012 - 21:36 | 2091075 ThaBigPerm
ThaBigPerm's picture

Despair!

We Fail!

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