Juncker Says There Is A "Plan B" If Greek Debt Swap Fails

Tyler Durden's picture


With 9 days left until the end of the Greek exchange offer, many are curious for hints on how the uptake may be proceeding and whether funds have amassed enough of a blocking stake in the Greek bonds (they certainly have it in the UK-law bonds whose exchange offer will take place conveniently in Apil after the Troika's €130 is funded, if at all). Which is why the following statement by Juncker will likely be very closely scrutinized:




For those curious what Plan B may be, here's a hint: it's in the box on the lower right.

Joking aside, it is poor rhetorical form to even mention an alternative to what at least in propaganda circles is assumed to be a foregone conclusion. If Juncker feels compelled to bring it up this early in the PSI process, it is merely to provide himself with additional leverage against holdouts who feel like not complying with Venizelos' pleadings of going along with the "very generous exchange offer" and instead hold out for par recoveries in litigation, an outcome which if it derails the PSI would mean the end of the Greek European dream.

As a reminder, today the Eurogroup once again did not come to a conclusion on Greece, instead couching it in more provisions and conditions, the biggest of which is the successful conclusion of the PSI.

So: how long until the leaks of PSI participation start, and if past is prologue, will they be initial bad, i.e., hinting at unsatisfactory acceptance, only to be replaced with good news at the very end in another attempt to ramp the stock market to the Birinyi promised land?

We will find out in the next few days.

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Thu, 03/01/2012 - 18:53 | 2214940 flyr1710
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Thu, 03/01/2012 - 18:57 | 2214948 maxmad
maxmad's picture

Plan B:  Weallwalkaway.com

Thu, 03/01/2012 - 19:25 | 2215030 bdc63
bdc63's picture

"we've got a plan B, but we're not going to tell you what it is" ... I guess that's an example of all this 'transparency' I keep hearing about ...

Thu, 03/01/2012 - 19:40 | 2215074 Rainman
Rainman's picture

The backup plan is always a Hail Mary pass....it is so written

Thu, 03/01/2012 - 19:49 | 2215083 Nobody special
Nobody special's picture

A is for Austerity

B is for Bankruptcy

C is for Collapse

Greece will sing the whole alphabet song. Apparently they're approaching "B is for Bankruptcy"

Thu, 03/01/2012 - 20:00 | 2215127 cnx
cnx's picture

D is for Death,

E is for Everlasting chaos

F is for Fly to Hell

... and so on,  until

Z for Zero chance of redemption/recovery.

Thu, 03/01/2012 - 21:33 | 2215378 Buck Johnson
Buck Johnson's picture

Your exactly right, it's a big hailmary pass that throws under the bus the rule of law.

Fri, 03/02/2012 - 16:27 | 2217855 Cadavre
Cadavre's picture

I was wondering about the "IF" plan "A" fails.

Thought it already had. It was designed to fail. Without a crisis the the ECB's UK shadow primary branches would not be able to rehypothocate. They would not be able to nurture and grow little baby counterfeit token siblings. And we can't have that, now can we.

Has the gold the ECB and Goldman extorted from Greece been physically transferred to an ECB vault?

What a fucking set up.

1) Greece applies to join the EU

2) Goldman (nut) Sack through fuzzy transactions or "legit" balance sheet trickery finds a way to hide problematic debt with off the book approval of EZ suits.

3) Greece is in the EU, but needs cash for Olympics.

4) Enter the Goldman (nut) Sack, again. to graciously service placing "new" Greek debt fund the Olympic Project (on top of the Greek debt Goldman helped hide).

5) Goldman is also the "dealer" for the bonds they placed, but the margin stands to Goldmans weren't enough. Goldman wanted more. Goldman's facilitators wanted more.

6) Since Goldman created the dirty little secret they engineered to shoe horned Greece into a financial coffin, Goldman (nut) Sack devises, or executes an existing follow up strategy.

7) After defrauding bond buyers falsely rate Greek debt, thanks to Goldman's legendary circus of malfeasance and chicanery, Goldman writes CDS insuring the "born to default" Greek paper and sells them to the same fools they 3 card monte-ed into buying Greek bonds.

8) Greece, as expected, defaults.

9) As the crisis weakens, Goldman Sayans, or blackmail victims, define and redifine, as the crisis season, what a Default is. Is it 10% or 20% or 30% or 50% of the principal due.

10) Regardless of what percentage of outstanding principal owed to bond holders is used to designate a default, Goldman cannot cover the counterfeit CDS chips it sold.

11) The solution is to first get rid of that fat fuck in the IMF who does not want to auction off Greece. Miraculously, an unappealing hotel maid that most wouldn't fuck with a borrowed dick lodges a complaint.

12) The IMF replaces him with Goldman almunus.

13) A Public referendum boots Greece's elected PM

14) The ECB replaces the Greek PM with another, you guessed it, Goldman Alumni.


The only question is why Goldman (nut) Sacks still in business.

Goldman did not go public until Glass Steagal was repealed and look at what they've done for the world since.

How did something as infallible as evolution, so we're been told, allow the genetics underlying Goldman's toxic DNA to arrive at OUR moment in history?

We need to study and accept the reality of multi generational crime families.


Thu, 03/01/2012 - 19:18 | 2215004 ACP
ACP's picture

Actually, that was the backup plan. Tell everyone you have one. That's it.

Thu, 03/01/2012 - 19:30 | 2215044 JPM Hater001
JPM Hater001's picture

I thought the backup plan was Harvey was going to ask his brother to buy the beer.

Thu, 03/01/2012 - 20:10 | 2215155 GovtMediaLiars
GovtMediaLiars's picture

The "backup plan" has, in truth, actually been the "go-to plan" all along. Just tell everyone you have a plan, there is no threat of "contagion," and our leaders have it all under control.
The markets at least appear to belive them. *shrug*
We shall see.


MM's 3/1/12 Market Recap


Fri, 03/02/2012 - 08:47 | 2216350 johnQpublic
johnQpublic's picture

as long as plan B isnt ww3

Thu, 03/01/2012 - 18:55 | 2214942 Tsar Pointless
Tsar Pointless's picture


S&P 1400 is assured!

Thu, 03/01/2012 - 19:31 | 2215045 JPM Hater001
JPM Hater001's picture

As long as we go through 13000 and stay there.  I'm just starting to sober up.

Thu, 03/01/2012 - 18:57 | 2214951 ebworthen
ebworthen's picture

Plan B:  B-B-B-Benny and the Jetsss...

Thu, 03/01/2012 - 18:57 | 2214952 Boilermaker
Boilermaker's picture

Of course there is.

There's also a plan C, D, E, F, G....what the fuck ever it takes to keep this farce going.

You ain't seen shit yet.

Thu, 03/01/2012 - 19:07 | 2214978 Sudden Debt
Sudden Debt's picture

Let's hope Plan A v. 99.02.74 holds....

Thu, 03/01/2012 - 20:12 | 2215162 Sophist Economicus
Sophist Economicus's picture

B is for Bomb! They're gonna bomb Greece!

I think i solved it!!!!!

Thu, 03/01/2012 - 19:22 | 2215018 CrashisOptimistic
CrashisOptimistic's picture

Here's the Greek law bond deal:

You folks accept 30 year paper paying you 3.5%, which is rather a lot below market rates, or else we won't pay you what we owe you March 20.  This way you get 30% of what you're owed, but you have to wait 30 years to get that 30%.

Additionally, you're moved from first place in the repayment queue back to 3rd place behind the ECB and IMF, who by the way, are going to get 100% of what they're owed.

So what say you?  What's that?  Are you sure?  Is that your final answer?

Then let's add a kicker to the deal.  You either agree to this or each of your institutions will lose its business license anywhere in Europe.  Your business will be barred from Europe.  Now what say you?

You're kidding.  Still no?  Let me show you some material.  Is that a photograph of your wife and kids?  Yes, it is, isn't it.  Standing out in the open like that.  Very dangerous.


Thu, 03/01/2012 - 21:20 | 2215346 Peter Pan
Peter Pan's picture

What happens when we run out of alphabet letters? Money we can print but letters?

Thu, 03/01/2012 - 18:57 | 2214953 Theta_Burn
Theta_Burn's picture

A back up plan...well done.

As if a lack of bull shit is a concern at all

Got CDS?

Thu, 03/01/2012 - 18:59 | 2214958 ziggy59
ziggy59's picture

3 of the worlds biggest lies:
- I won't Cum in your mouth
- econonmy is doing great
- we have the alphabet back up plan

Thu, 03/01/2012 - 19:05 | 2214975 Sudden Debt
Sudden Debt's picture

The AlphaNumerique Plan!

Thu, 03/01/2012 - 19:08 | 2214981 Eclipse89
Eclipse89's picture


Thu, 03/01/2012 - 19:32 | 2215047 JPM Hater001
JPM Hater001's picture

Deep in my brain, way back where it's undeveloped and still giggles at farts and poop jokes I'm + one-ing that.

Thu, 03/01/2012 - 19:04 | 2214968 Marge N. Callz
Marge N. Callz's picture

There is no "morning after pill" for Greece.  The Greek economy is going down the toilet and it won't be long until the IMF or Troika or some mystical unicorn realizes that Greek GDP will not fall by only 1% this year, but more likely 10% and the country will be in a deep depression.  At that point they will have to decide to let them go bankrupt or keep pouring money down the rat hole.

Thu, 03/01/2012 - 19:33 | 2215048 JPM Hater001
JPM Hater001's picture

Well, actual the morning after pill is Portugal.

Thu, 03/01/2012 - 19:05 | 2214969 Sudden Debt
Sudden Debt's picture

I know plan B!!!!.Let's talk about it for a few months.

Thu, 03/01/2012 - 19:23 | 2214970 Raynja
Raynja's picture

plan b: we'll shove our CAC up your ass.

Thu, 03/01/2012 - 19:07 | 2214979 Caviar Emptor
Caviar Emptor's picture

Junker is to 2012 what GHW Bush (Sr) was to 1988 : "read my lips...No New Bailouts!!"

Thu, 03/01/2012 - 19:17 | 2214984 nonclaim
nonclaim's picture

Could Greece issue enough notes to make up for any percentage shortfall, diluting the holdouts? I'm sure the ECB would gladly hit the full amount (on behalf if needed), immediately submit it to the swap operation and then declare success with "very high participation" among "investors"...

Thu, 03/01/2012 - 19:15 | 2215000 non_anon
Thu, 03/01/2012 - 20:53 | 2215258 MsCreant
MsCreant's picture

Arrange by penis. I'm not sure the laugh was worth the time, but it was funny.

Thu, 03/01/2012 - 21:23 | 2215354 non_anon
non_anon's picture

ah, MsC, thanks for looking!

Thu, 03/01/2012 - 19:19 | 2215008 ZeroPoint
ZeroPoint's picture

Plan B: Guns, gold, water, dyhdrated food, & firewood.

Thu, 03/01/2012 - 19:22 | 2215020 Lost Wages
Lost Wages's picture

Plan B: Angela Merkel sits on the debt until it suffocates, then vaporizes.

Thu, 03/01/2012 - 19:27 | 2215035 Piranhanoia
Piranhanoia's picture

Juncker;  "You schtup's will believe everything"  "Look!,  the sky is green"   "Germany just found unlimited deposits of everything"  hohohohohoho,  "Greece isn't going to default"   schmucks.  

Thu, 03/01/2012 - 19:29 | 2215040 JPM Hater001
JPM Hater001's picture

Well, since the CAC wont be triggering a default and a CDS payout I would guess 67% is a pretty tough nut to crack.

Prepare for the Greeks to really get mad.

Thu, 03/01/2012 - 19:29 | 2215043 marketblip
marketblip's picture

Plan B - www.marketblip.com


Thu, 03/01/2012 - 19:32 | 2215046 navy62802
navy62802's picture

March 20th. It's the only hard deadline we have at the moment. It'll probably get pushed to the right, but for now, it's the only hard deadline.

Thu, 03/01/2012 - 19:33 | 2215049 chump666
chump666's picture

Nasty, EU/ECB and all the butboys in-between.  EUR is selling, breaks the 1.32 sitting on the 50ma and we have a free-fall.

Europe, your inflation beat-down is on.  Best riot or something outside the ECB

Thu, 03/01/2012 - 19:36 | 2215051 EvlTheCat
EvlTheCat's picture

Stick Plan B in Orthrus A.

Thu, 03/01/2012 - 19:36 | 2215060 Convolved Man
Convolved Man's picture

I can just imagine the possible intrigues involving members of the ISDA DCs.  Scenes from "The Godfather", "The Omen" and "The Devil's Advocate" come to mind.

Thu, 03/01/2012 - 19:39 | 2215071 kito
kito's picture

hannibal: "i love it when a plan comes together."

Thu, 03/01/2012 - 19:42 | 2215076 Quantitative_Ap...
Quantitative_Appeasing's picture



Here it is -


Plan B - Cry, moan, throw self in front of moving train and/or off balcony.



Thu, 03/01/2012 - 19:43 | 2215078 itstippy
itstippy's picture

Plan B: They take Slewie's advice.  The U.S. steps in, pays the outstanding bar tab, and Greece becomes a "Non-Self-Governing Territory" of the United States.  It would become a huge tourist destination, like the U.S. Virgin Islands.  No customs.  Friendly natives.  Clothing optional!

It's a way better plan than the crap the Europeans have come up with over the past 2+ years.  Slewie gets to be Govorner if he wants the job, it being his idea.

Thu, 03/01/2012 - 22:16 | 2215454 slewie the pi-rat
slewie the pi-rat's picture


just put my avatar up on the arch saying "welcome to america, BiCheZ!"

that's all i've ever asked...

that would be at slewieInt'lAirport, of course...

Thu, 03/01/2012 - 19:45 | 2215085 The Alarmist
The Alarmist's picture

Why do I get the nagging feeling that "Plan B" is just a re-write of the script from "Plan 9 from Outer Space"


Thu, 03/01/2012 - 19:49 | 2215097 Amish Hacker
Amish Hacker's picture

They have an infallible backup plan but can't reveal what it is. Making that ridiculous statement is the only backup plan they have.

I seem to recall that Richard Nixon had a secret plan, too, to end the war in Viet Nam, just before the 1972 elections.

Thu, 03/01/2012 - 20:06 | 2215138 SillySalesmanQu...
SillySalesmanQuestion's picture

Here is the "official vote" of the ISDA today: Just the same old crap.



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