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Greek Stock Market Soars On Speculation Tsipras Bluffing
Something amusing happened in today's global capital markets: while European bond markets, especially in the periphery, are sliding following the Spanish downgrade and the Italian bond auction, one market has soared: that of Greece, which is up nearly double digits (not all that meaningful when you are at 20+ year lows), and whose bankrupt and deposit-free banks are up 20%. Which in turn is pushing US futures higher despit the Spanish record yield. What has caused this spike? Nothing but more political rhetoric and jawboning. Specifically, overnight Kathimerini reported that "Stefanos Manos, the leader of the small liberal party Drasi, claims that leftist SYRIZA will not scrap Greece’s bailout if it comes to power because it is the only way it can guarantee salaries for its supporters in the civil service." Well, yes. Tspiras never said he will scrap the bailout. He merely said that he will end the memorandum in its current format. The decision then, and as always, would lie with Germany and the ECB, what to do about this latest Nash Equilibrium defection. In other words, the ultimate decision-maker was never Tsipras, and in fact even ND's Samaras has repeatedly said he would renegotiation the terms of the Greek bailout. But in this centrally-planned, robotically-traded market, confusion over cause and effect is to be widely expected.
“SYRIZA has taken over, mainly from PASOK, the patronage of the status quo created by labor groups,” he told party supporters during a rally on Wednesday night.
On Thursday, Manos repeated his position in an interview with Skai TV. «SYRIZA's customers are the civil servants, public enterprise employees and academics. [Alexis] Tsipras has to ensure that he can pay their wages. I wouldn't worry at all [about the bailout being rejected]."
Manos said that the real issue at these elections was not whether parties favour the memorandum or not. “The issue is restoring the balance between the rights and responsibilities of the privileged in the public sector and those without privileges in the productive sectors of the economy,” he said.
Drasi is cooperating with pro-business Dimiourgia Xana (Recreate Greece) and the Liberal Alliance for the June 17 elections.
So propaganda aside, what did Tsipras really say? Well, fast forward 2 hours in the same Kathimerini which reports...
SYRIZA leader Alexis Tsipras says that if his party comes first in Sunday’s elections, it will signify the end of the EU-IMF memorandum but the leftist added that he is prepared to negotiate a new deal with Greece’s lenders.
In an interview aired on Antenna TV on Thursday morning, Tsipras said that voters, not SYRIZA would decide if the terms of Greece’s bailout should be cancelled. “The memorandum will be repudiated by the people’s vote, not us,” he said.
Tsipras said that he wants the policy of internal devaluation to stop but that he is prepared to discuss all these issues with Greece’s eurozone counterparts.
In other words, as explained over the past 2 months, the Greek politicians will likely send a bid for memorandum renegotiation in either case. What happens then is out of their hands. The bigger question is whether Germans will have the stomach for Greek bailout #3. If one judges by the comments after yesterday's Die Ziet article, and by the emergence of the #StoppESM twitter hashmark, futures have much more to be worried about than what some C-grade politician in Greece has to say.
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Defect Bitchezz!!!
Greek Stock Market Soars
A fool and his money.
frickenze speculators!!
A poll leaked. The media are not even allowed to say that it leaked due to the ban. Guess who is winning.
Tsipras is Greece's Roosevelt: he wants a "new deal."
Tsipras is Greece's Roosevelt
Teddy or Franklin? Not that it makes much difference. Progressive or Liberal.....pretty much gonna screw it up either way.
You really don't see much difference between Teddy or Franklin? That's scary.
will not scrap Greece’s bailout if it comes to power because it is the only way it can guarantee salaries for its supporters in the civil service."
Or leave Euro and print his very own Dramas .. err... I mean Drachmas.
Hello!! The Leftist's will not scrap Greece's bailout because they need to continue the Ponzi for their very existence.
They won't scrap the bailout because they won't win.
Oh yeah forgot to add fuck.
Fuck?
What are you Talking about?
Article from Reuters, last week titled;
Anti-bailout SYRIZA party in the lead: Greek poll
http://www.reuters.com/article/2012/05/30/us-greece-poll-idUSBRE84T0UL20...
No, no we don't wanna to end-ah da bailout. Please still give us da money. We just-ah won't take-ah any more of your crappa austerity.
So, in other words, the populace will vote for a politician who turns out to be a wolf in sheep's clothing.
There's something entirely Rand Paul'esque about this.
I can see this going down well with the demonstrators, who have already taken up violence in prior protests.
More like a sheep in wolf's clothing. How can an open communist appear innocuous to anyone with half a brain or even half a history book?
You say that, but the manifest of Denmark's "enhedslisten", is essentially communism. And they take 5-10% of the vote!
Of course, when pressed about it being communism, their politicians insist that although it might draw some parallels, their principles would be implemented in a "democratic" fasion.
And people actually buy it!
Aka "useful idiots".
And never underestimate the numbers of fanatical ideologues or outright psychopaths who know exactly what it's all about.
I miss that part where Tsipras outlined his party's view on the Euro...
Well, they want to stay within the Euro, but they haven't elaborated further than that... probably because their point of view is a practical impossibility.
Besides, it's better for politicians to be as bland as possible, as opinions can lead to alienation of voters. Better to keep the populace guessing.
But I thought central planning was about avoiding such confusion...
... I guess not.
Aziz, only if you make sure to murder 10% of your nation's population annually.
Remember the Irish elections? All fluff.
Elections just make the sheeple think, they are the ones deciding and also help blaming them for wrong decisions.
A NEW LOAN WILL SOLVE ALL THE PROBLEMS!!!
BELIEVE ME!!
200 BILLION! NO STRINGS ATTACHED!
200 BILLION! NO STRINGS ATTACHED!
What about the lapdances you were talking about on the other thread?!!
You are worse than Eurocrats man!
The past is the past... no reason to keep on bringing it up. We must look to the future....
The only consistency in the market is its ability to remain irrational.
What is "dead cat bounce " in Greek?
Is the cat alive or dead? Can Greece be both in the euro and out?
Its Schrodinger's cat. It can be whatever you want it to be as long as you dont open the bag to check ...
Is it speculation Greece is bluffing or is it a short covering rally so the shorts can get their capital out of Greece? Is shorting still allowed in the Greek market? I find it hard to believe capital would be flowing into Greece.
New Drachmas bitchez¡
Cyprus (limassol and nicosia) bankruns during weekend
Cyprus (limassol and nicosia) bankruns during weekend
Which now forces Tsiparas to make a statement BEFORE the election making it clear that they will scrap the bailout and demand a bailout paeya ala catalan. If he doesn't he will not gain control and he knows it. We forget that those hungry for power do not care about those who they are in power of. He is conceited (and probably right) enough to believe that the ESM will not let Greece pull out of the Euro and default on their loans. It would be easier to dump the austerity on rich Germans. Even if the gambit fails and he can not get bailed out, the Greek pull out of the EMU and re-issue the Drachma, no huhu.
Greece stock comparative crack 1929
http://agstock.blogspot.com.es/2012/06/greece-vs-crack-29.html
With Greek stocks down 80% or whatever now stocks are probably a better store of value than Greek bank accounts which will lose big as a store of value if Greece bombs out of the Euro zone.
Looks like some intense preflop bidding to buy the pot. Interestingly, everyone in the game is bluffing and they all know it.
There will be NO third bailout. Greeks would reject any and all conditions. Any new money won't create jobs but just kick the can a bit more. Remember folks, Greece is broke, mathematically they can't climb out of the hole.
Also remember that even if there *is* a third Greek bailout, most of that will head right back out to the German and French banks rather than stay in Greece...
I don´t care who wins on Sunday....they still have the same problems....no jobs...to much Socialism...and no income....
Is it much easier to confront problems with one's sovereignty wouldn't you say?
Not with the Greeks. They trust their own elites less than they trust everyone elses.
That asteroid is looking a lot like Ganymede ... just sayin
I'd like to see Greece leave the Euro cause only then will the world get to see how much Greece really owes. The ocean of anonymous electronic financial liabilities can only come to light when the tide goes out.
Do they have to be paid in Zooro?
Tsipras is playing it exactly as he should. No sense blowing up when you can use the threat to negotiate a better deal. The problem is "the better deal," premised as it is on imagined future growth, will only buy time, not a solution.
Rally warning continues...
Despite stockbears with their pre-election jitters, SPX choppy bullish daily & USDX bearish daily charts strengthen.
Significant equity / EURUSD upside & USDX retracement ahead.
http://www.zerohedge.com/news/2012-12-24/market-analysis