Just Add Minotaur - The Greek Balance Sheet Labyrinth In All Its Insane Glory

Tyler Durden's picture

Want to keep the minotaur perpetually lost? Forget the labyrinth: just let him loose in the epic disaster that is the Greek post-PSI balance sheet. Because anyone who still harbors quaint notions of pari passu sovereign debt is about to get an epileptic fit. As the BNP chart below shows, following the "successful" completion of the PSI, where we expect quite a few billion in UK-law holdouts to present a substantial headache to Greece as noted yesterday, the country will have not one, not two, not even three distinct debt classes of debt, but a whopping seven! Yup - one country, seven tranches of debt, in order of seniority: 1) EU-IMF Loans; 2) EFSF Loans; 3) SMP GGBs; 4) New GGBs; 5) T-Bills; 6) Old GGBs and 7) Other loans. So when that dealer sells you sovereign bonds from now on, we suggest getting some color on tranching, subordination, ranking, priority, security, guarantee, collateral, and in general everything else that is now forever gone in a post-pari passu world. And this is certainly not just Greece. With all of Europe undergoing the same stealthy "unsecured" debt-to-taxpayer higher lien restructuring, the same will happen in Portugal, Ireland, Spain, Italy, and eventually every other country, as the only real source of cash to keep the European once dream now nightmare alive are taxpayers, who directly have to fund out of pocket any hope of a residual welfare state... which incidentally at a hundred trillion or more in unfunded liabilities, is far more insolvent than Greece ever could be.

The seven different types of Greek debt in all their insane glory:

Then again, as we have long claimed, this is nothing more than merely the latest iteration of Wall Street's favorite pastime: 'Baffle them with bullshit' - which is to make things so complicated, people's eyes glaze over when they start analyzing from a bottoms up perspective. Of course, this is nothing new: this is precisely what has been happening for the past thirty years in high finance, as discussed in Shadow Rehypothecation, Infinite Leverage, And Why Breaking The Tyranny Of Ignorance Is The Only Solution. And because people happen to be lazy, nobody really feels like doing their homework until it is too late, at which point the screaming and fingerpointing (ahem rating agencies) begins.

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Stackers's picture

"Thinking is the hardest work there is. Which is why so few people do it."

Henry Ford.

RollinsArline3's picture

my roomate's mom makes $83/hr on the computer. She has been fired from work for 9 months but last month her pay check was $18339 just working on the computer for a few hours. Read more on this web site .....  http://bit.ly/FPPP3j

Mercury's picture
Just Add Minotaur

...to which human sacrifices must regularly be made.

Tyler Durden's picture

Human? No. Taxpayer slave with solvent welfare state and retirement fund illusions? Absolutely.

Mercury's picture

Well, formerly human.

In any case, it looks like the Greeks are returning home under black (Blankfein?) sails once again:

....the country will have not one, not two, not even three distinct debt classes of debt, but a whopping seven!


GeneMarchbanks's picture

So taxpayers are infrahuman? Noted. Where is Conrad Murray?

Ghordius's picture

hmpfrrr... this "Slave" thing is getting a bit thick. You know it's just a younger meme trying to explain that specific US situation with the immense personal debts done "because this is the way and we have to keep up with the Joneses".

Don't get me wrong, I'm a fan of your site - but this rape of the vocabulary is sometimes just too much.

There are millions of real slaves on this world - getting beaten and - the most important part - not being free to leave.

Even the Greek Taxpayer forking out the biggest sum yearly gets something in return - including a system of navigational lights on the islands and harbours and a shiny Army and Fleet to possibly be proud of (or to complain about). It's a question of return on contribution.

I repeat: I'm only complaining about using the term slave figuratively while there are real slaves nearly nobody cares about.

Tyler Durden's picture

Certainly not Goldman Sachs. Real slaves have no gold to confiscate.

Ghordius's picture

Don't mention the Holy Vampire Squid's name in vain, unbeliever !!! ;-)

Since I have the honor of your attention: thanks for exposing so much of the GS's machinations. And the HTF pieces are brilliant.

But I am serious and convinced: using half baked propaganda memes is deleterious to the credibility of the message and it's vehicle. Particularly outside of the cultural environment where those memes are used most. A slave can't just quit, leave the country and start fresh somewhere else. Greeks are doing this since the times of the Ottoman empire. Just look how many are in Australia, for example.

As far as I understood, the Greek gold (not much to start with) was freely and legally pledged. Stupid, yes. But that's what gold is, the last internationally accepted bastion of credit and credibility. The very last asset to pledge. And I would be surprised if it would be shipped away, not much, but still surprised.

Tremain's picture

I’m a tax payer & I’m free to leave am I? Pray tell is there a hippy community on some uncharted island where I can live in tax free barter bliss? Or better still an Ayn Rand commune where I can go Galt? As to beating try not paying your property taxes and continuing to occupy said home in protest at your taxes being used to prop up the global ponzi. No I don’t think slavery is an exaggerated analogy.

Ghordius's picture

You don't see the point, do you? If you are under the burden of a student loan (from which you can't default) and you claim to be therefore a "Debt Slave" then you might have some point in my eyes.

Though then you have somewhat "sold" yourself. But this is another story.

And there still are other countries and some of them don't even have taxes. Again, another story.

Slaves? There are some twenty millions human beings on this planet that have been kidnapped or sold, beaten to submission, chained or otherwise kept prisoners and have to work for no wages and, if pretty, repeatedly raped. Is this your lot in life?

ConfederateH's picture

using "rape of the vocabulary" is rape of the vocabulary! At least as much as calling those brain washed indendured servants "slaves".   I think "coolie" is better than slave anyway.  Technically they weren't slaves, but the emporer could have do with them whatever he wanted.

Ghordius's picture

I thought so but a better phrase still eludes me and I can't change it anymore.

Coolie? It's a menial worker on wages, isn't it? Something like a serf, then.

JPM Hater001's picture

I'd like a cheeseburger... fries...and a manual please.

Catullus's picture

Obviously the cat in the box is dead. 

GeneMarchbanks's picture

It's more complex than that. The question you should be asking is if there isn't a cat at all, can it still be alive? See Morgan Stanley's latest report since you're confused. That should clear things up for you nicely.

icanhasbailout's picture

The cat was stolen from the box and shipped off to China.

Ghordius's picture

Don't open the box and it will be all right! Don't open the box and it will be all right!!

Ghordius's picture

Thanks, Holy Vampire Squid, this MuppetsLand was serviced very well...

mayhem_korner's picture



One thing that's not confusing is that the projected values are in red.

Incubus's picture

Greece is filled with a bunch of pussies. Instead of burning the parasites off, they'll parade around in the streets and call it rioting.  Their display is beyond pathetic, now. 


I guess they haven't lost enough yet.  Looks like Iceland was the only one with some intestinal fortitude.

i-dog's picture


"I guess they haven't lost enough yet"

Yep. Just like Americans.

Conrad Murray's picture

I've watched family, friends, neighbors, and strangers lose their jobs and homes. Just yesterday a relative of a friend committed suicide because of it.

They say unemployment is 8% when everyone who isn't surrounded by the parasites of the DC/NY Axis of Evil can plainly see it is well north of 15% in general, 40%+ youth, and 50%+ minority.

The rich white banksters and politicians want the people to believe things are okay. They use their minions in the MSM to spread their disingenuous disinformation memes. It's not working.

The people in the neighborhoods affected by these tyrants and criminals know exactly who is to blame. The anger is bubbling, the clans are coalescing, and the plans are being laid. Americans have had enough. This summer will be violent.

i-dog's picture

The rioting you speak of will not be for a paradigm change to replace the broken system -- such as that which occurred in the American Revolution, where a monarchy was replaced by an independent, self-governing republic -- but it will be for "the [bankrupt] government" to hand out more bennies, pass more laws, steal more from the rich, "create" more shovel-ready government jobs and, in general, do more of the same!! Exhibit A: OWS.

On the other hand, the [bankrupt] government will keep printing and keep publishing bullshit statistics and bullshit propaganda, while declaring any rioters as "unpatriotic" "terrorists" who are "causing the problem". Exhibit B: Patriot Act.

Eventually, the ruling criminals will impose martial law in the interests of "national security" and yet another replay of France 1793, Russia 1917, Germany 1938, China 1948, Cambodia 1975 and Kent State 1970 will ensue.

Until a reasonable percentage of the population sees that government is the problem, rather than the solution, nothing will change.

LawsofPhysics's picture

So the banks win again.  Same as it ever was.  When banks come to you for another pound of flesh, what will you do?  Go Greek or Iceland?

q99x2's picture

Time to put these Hitleresque Bankers in hand cuffs. They don't have a gestapo yet. When do we get to see them wearing arm charms.

I thought houdini lady on the Roubini video said everything was fine other than not being able to buy a book or get a cup of coffee at a coffee shop bookstore. I knew they should have taken that big screen out of her office.

Downtoolong's picture

'Baffle them with bullshit'

It's all Greek to me. Oh yea, probably to most Greeks too. But, they all have at least one thing in common. None of them are going to get paid.

spentCartridge's picture

Bubble & squeak ...

jmcadg's picture

Does this mean holders of Portuguese, Spanish and Italian bonds will also be 6th on the depth charge, cut by 75% then promoted to 4th! Is anyone really still buying this sovereign debt ... Except ECB and Fed?

spanish inquisition's picture

Labyrinth! What a beautiful structure for vaporizing gold.

Step 1. Secure the Gold in a secure facility to secure it as security.

Step 2. Rehypothocate the Gold. If people want to hang onto it, let em if it makes them feel better. Don't worry about records, in this business, handshakes are enough.

In other, completely unrelated ideas....

Step 1. Hang around Jamie Dimon, just in case he needs some help carrying Gold in the near future.....

BobPaulson's picture

Daedalus could be the head on their aluminum or plastic coins they mint. Not only did he make the labyrinth, but he constructed the wings of Icarus, who was punished with death for flying to close to the sun...

Olympia's picture

...the barbarians, who forced beautiful Europe to get down Zeus’ “back” and made her a prostitute.

...the unworthy Europeans, who in 1945 “took Europe down” from “Mount Olympus” and in 2012 relinquished “enslaved” Europe to the Phoenician loan sharks.

It is just a matter of time for the Planet to “see” the great battle between two of the top factors of the human history, the Greeks and the Jews. A battle bearing huge consequences since its outcome shall define the operation mode of the global system. Its outcome shall define the way in which the whole human kind and not just Europe shall live in the future. Now you can understand why all occultists all over the world consider the year 2012 so much critical. You can understand why “Armageddon” with its worldwide consequences shall take place at the Eastern “corner” of the Mediterranean sea.
Soon enough, many shall "bite their lips” and many lips shall be “sealed” because they dared to say unfit things. The solid and eternal meritocracy of history cannot be doubted by any clown because it is just in his interest. History shall repeat itself in a far greater scale and therefore the benefit for the leading roles shall be much greater. If ancient Greeks won the battle against the barbarity of the East in favour of Europe, then modern Greeks are those who are meant to win the battle against the barbarity of both Eastern and Western world in favour of the human kind. The world has become a little “village” and in this “village” everyone knows what the character of the others is.

The German traitors of Europe along with the Phoenicians from Asia may have forced Europe to get down from the "back” of the Greek “bull”, but it remains to be seen how they shall pull it through with the “bull”.



RoadKill's picture

Anybody have the raw $ amounts for that chart?

Carl Spackler's picture

Point well made, Tyler.

The irony of the "slave" argument above is appropos to the American and European situations today.

(I, personally, have no hands-on, professional or life experience with the Asian culures to opine on their matters.)

The very fact that "Ghordius" places more emphasis on arguing about the metaphorical usage of a noun and uses his/her energy to defend such, rather than opining on the merits of a seven-tiered, new debt structure which has been sold to the masses as a "solution," is exemplary of the type and level of control over the people played out every day in European and American government (i.e., the masses) and financial spheres (i.e., the muppets). It is an example of, once again, falling for the trick or being conned.

In other words, arguing about the merits of the seven-tiered, new debt structure is the real focus and a matter of grave concern in today's world, regarding the future living conditions and well being of millions of people.  BUT, the controlled have been so trained in these societies over the years, in some cases to a sub-conscious level, to steer away from the real issue and -instead- into focusing on meaningless tangential matters of life which have little to no impact on power, daily conditions, or well being (the correctness of the use of a metaphor, who wins American Idol, wearing hoodies, Hollywood gossip, et al.). 

In this case it appears Ghordius fell into this trap.