Latest Greek Economic Collapse Means Country Will Soon Be Out Of Eurozone, Or Bankrupt, Or Both

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Thu, 09/08/2011 - 11:58 | 1646428 Long-John-Silver
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Should I start popping the corn for this show now? 

Thu, 09/08/2011 - 12:14 | 1646496 tekhneek
tekhneek's picture

"There is no threat of Greece exiting the euro zone," government spokesman Ilias Mosialos said. "We are proceeding with reforms quickly."

I just shit my pants and blew water out of my nose. This shit's priceless.

Thu, 09/08/2011 - 12:36 | 1646599 Ethics Gradient
Ethics Gradient's picture

Never believe anything until it has been officially denied.

Thu, 09/08/2011 - 13:35 | 1646834 MFL8240
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Love it!

Thu, 09/08/2011 - 13:36 | 1646837 MFL8240
MFL8240's picture

Love it!

Thu, 09/08/2011 - 13:36 | 1646839 MFL8240
MFL8240's picture

Love it!

Thu, 09/08/2011 - 14:42 | 1647137 english serf
english serf's picture

its confirmed then

Thu, 09/08/2011 - 12:05 | 1646430 tawdzilla
tawdzilla's picture

toga party 2nite @ Merkels house

Thu, 09/08/2011 - 12:24 | 1646536 Herman Strandsc...
Herman Strandschnecke's picture

The dyslexic will be the one dressed as a goat

Thu, 09/08/2011 - 12:00 | 1646432 oogs66
oogs66's picture

how do stocks keep going up?

Thu, 09/08/2011 - 12:04 | 1646456 Long-John-Silver
Long-John-Silver's picture

Stealth printing presses are still in use.

Thu, 09/08/2011 - 13:53 | 1646934 Sudden Debt
Sudden Debt's picture



In the 90's, we had KNIGHTRIDER!!

In the 10's, we have KNIGHTPRINTER!!


Thu, 09/08/2011 - 14:43 | 1647141 Instant Wealth
Instant Wealth's picture

Printmaster Ben and the Furious Fed

Thu, 09/08/2011 - 14:44 | 1647145 The Gooch
The Gooch's picture

"we know how to fix this mess-fire Ben and the printing press- RON PAUL"

Thu, 09/08/2011 - 12:00 | 1646435 Azannoth
Azannoth's picture

When Greece defaults the voluntary or involuntary way everything we've seen till now will look like picnic, and it looks like that's a given

Better keep your bug-out bag up to date

Thu, 09/08/2011 - 12:00 | 1646440 BORT
BORT's picture

Here is what is really not needed in Europe right now


Iceland's Volcano Katla under Close Observation

Increased geothermal heat and seismic activity below Mýrdalsjökull glacier in south Iceland, which covers the volcano Katla, may indicate an upcoming eruption. Scientists are closely monitoring the volcano, although it is not certain whether an eruption is imminent.

Thu, 09/08/2011 - 12:04 | 1646460 PY-129-20
PY-129-20's picture

Isn't Katla very powerful? When that other volcano erupted, Eyjafjala...something, they always mentioned Katla as the bigger threat and that they were connected in a way.


Thu, 09/08/2011 - 12:51 | 1646594 Use of Weapons
Use of Weapons's picture

ZH might just have eyes/ears on the ground if/when it blows. Let's say its being tracked. The 1973 one was a baby - Katla is much bigger.


The issue is simple: . Each of the eruptions of Eyjafjallajökull in 920, 1612, and 1821–1823 has preceded an eruption of Katla.


Here's the disaster porn: last 48 hrs of activity in the crater, looks like it is increasing - Myrdalsjokull = glacier sitting on top of katla, and note the size differences between the two 

Katla volcano can be found under the south-eastern part of Icelands Myrdalsjokull icecap.

Katla volcano has a large ice covered caldera which is 9 miles in diameter and is the fourth largest volcano in Iceland at 220 square miles.

Katla has erupted many times in the past, usually once in every 80 years. The last major eruption was in 1918, and is rumoured to have caused death by gas poisoning in some areas of the UK.


Some say the world will end in fire;
Some say in ice.
From what I've tasted of desire
I hold with those who favor fire.
But if it had to perish twice,
I think I know enough of hate
To say that for destruction ice
Is also great
And would suffice.

Thu, 09/08/2011 - 15:10 | 1647275 Azannoth
Azannoth's picture

That volcano could put the world in a mini-iceage for a few years, think crop failures, food riots, wars, etc.

Thu, 09/08/2011 - 12:02 | 1646450 poggi
poggi's picture

What's all the excitement.  Hell, Greece first defaulted about 50 BC, so, what's new.  Order the Greek salad and be calm.  It'll all be okay.

Thu, 09/08/2011 - 12:21 | 1646519 Cole Younger
Cole Younger's picture

True...until BAC has to make good on the derivatives it holds....But no worry there either...BAC likely owns derivatives on its derivatives and those derivatives are likely insured by other derivatives (and so on). 

Thu, 09/08/2011 - 12:57 | 1646663 WSP
WSP's picture

But since the execs at BAC (as well as the others in our kleptocracy) make the rules, control the government and justice system, and most importantly, the printing presses that feed our ponzi scheme, does it really matter?  Seriously? 

If a bet goes bad, they just change the accounting rules, print money, or dump it on investors, so in the end, does it really matter?  They win, you lose, period!   Don't want to play you say?  Doesn't matter.  Buy gold, they will run it down or change the rules or do a 90% windfall tax.  Hold dollars, they will debase it.  Try to start a business, they will regulate you away.   No, the best option most have is to max out credit cards and other debt and collect government assistance.  They don't care though, they will just print more.


Thu, 09/08/2011 - 17:59 | 1647982 honestann
honestann's picture

All correct, except for one minor but rather nasty detail.

The entire system rewards people for being non-productive, destructive, dishonest slugs.

The entire system punishes people for being honest, creative, productive individuals.

Therefore, the end result will be nobody producing and everybody consuming.

Except... where will the products come from when nobody is a producer?

Answer:  the products won't exist, and the majority of mankind will die off.  This is what the elitists have been planning, what they have openly published, and what they have been actively pushing forward in many other ways by making the world unhealthy and people braindead.

What people just don't seem to get (or want to face) is that money cannot buy anything if nothing is produced.  And that's where this is headed.

The producers need to withdraw from society, become self-sufficient, refuse to be participate in "commerce", refuse to be fleeced... and let the vast majority of predators and parasites destroy themselves.  Just make sure you are far, far, far away in the extreme remote boonies, well armed, and capable of self-sufficiency.  These will be the "meek who inherit the earth"... assuming anyone gets off their butts and takes these actions.  If not, all mankind will perish.  And good riddens.

Thu, 09/08/2011 - 12:02 | 1646451 kaiten
kaiten's picture

Well, I think kicking Greece out of eurozone was the german position from the very beginning. They just cannot do it directly, so it´s all about forcing them to leave "voluntarily".

Thu, 09/08/2011 - 12:36 | 1646591 Cugel
Cugel's picture

Well, I think kicking Greece out of eurozone was the german position from the very beginning.

So I guess the Germans were right all along then, eh?

Thu, 09/08/2011 - 12:47 | 1646640 kaiten
kaiten's picture

in what sense?

Thu, 09/08/2011 - 13:06 | 1646701 Cugel
Cugel's picture

In the sense that they are now having the problems with Greece that they anticipated they would have with Greece before. Hence, their aversion was well founded.

Thu, 09/08/2011 - 13:29 | 1646806 kaiten
kaiten's picture

Of course, it´s well founded. I also believe they are right. Greece has nothing to do in eurozone. The sooner they leave, the better. For both, eurozone and Greece.



by "very beginning" I meant 2010, when this crisis started, but it´s also true in broader sense, since 2001 when Greece joined. But eurozone is not a union only between Greece and Germany, so it wasnt just a german decision(to let them in), and there were also other issues, like German unification etc

Thu, 09/08/2011 - 14:11 | 1647017 Fuh Querada
Fuh Querada's picture

Only the markets can throw Greece out of the EUR. The power elites will never permit it.

Thu, 09/08/2011 - 12:10 | 1646479 frugartarian
frugartarian's picture

just default already, jeeeezzz

Thu, 09/08/2011 - 12:16 | 1646503 guiriduro
guiriduro's picture

Inevitable really, austerity simply introduces an unemployment->contraction->debt expense cycle.  The irony is, what Greece needs is credit - provided that credit can be spent productively.  And for that to happen Greece needs some reform, but mostly it needs its (new) creditors to also know their money is not going into servicing the enormous unproductive debt overhang it already has, or to rank pari passu with its existing (greedy) creditors.  I think policy makers already know this, they've bought as much time as they can, the next step is bankruptcy / haircut / writedowns.  Greece needs to get out of its current obligations in order to form new ones.  This will of course force the problem into the financial sector with a new Lehmans event.  The squabbling was not really whether Greece could "austere" itself into a model debtor, but rather the brinkmanship between the investor class and its politician puppets, versus the Greek and German taxpayers, neither of whom want (nor should have to bear) the consequences of prior malinvestment.  Which isn't to say the Greeks don't have significant reforms to do, just that there is no way for them to accomplish it in the status quo. 

Thu, 09/08/2011 - 12:36 | 1646598 ElvisDog
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Greece needs to get out of its current obligations in order to form new ones

Hah, that is funny. And why would you lend money to someone who had just declared bankruptcy so they could take out a new loan? I mean, I know it happens with countries, Argentina is an example, but it does seem a little dubious from a "will they repay this new loan" point of view.

Thu, 09/08/2011 - 14:25 | 1647072 guiriduro
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Well, I guess the real question would be, what is worse?

A partially (or even fully) reformed debtor whose past excesses are so large that, with the best will in the world, they will be unable to meet their obligations.  Would you lend to them?

Or, a partially reformed debtor, having just recognised the simple fact that its past debts are totally unaffordable and had declared bankruptcy. Having cleared the previous debt through default, they present you with a transparent, reformed, productive plan for use of new debt.  Would you lend?  Or at least, neither scenario being ideal, which would you consider worse?

Thu, 09/08/2011 - 17:52 | 1647946 honestann
honestann's picture

#1:  Default on all debt.

#2:  NO MORE DEBT.  Never borrow another penny.  NEVER.

After the default, they have a clean slate.  They can learn to live without debt.  Zip, zero, nada, none.  Anyone who claims that individuals OR governments cannot exist (or cannot function as effectively) without debt is either insane, a blatant liar and fraudster, or both (a banskster).

Thu, 09/08/2011 - 13:46 | 1646805 edotabin
edotabin's picture

We know the bankers are crooks. We know the greek public sector is a huge blood-sucking organism.

If they implemented the austerity where it needed to be implemented (deflate huge blood-sucking organism) and took half the savings and invested it by encouraging the more ambitious, hard-working Greeks things would have been more workable.

A friend told me he saw on the news that they are preparing for 10-15% cuts in the public sector starting sometime in September. Far too little, far too late.

They didn't have the time to do it.  Dogma has superceeded the real world in Greece. It took about 30 years to create this monster and it will take about 10 years of very aggressive policies to change it back. There was no way this could/would happen in 1-2 years.

Thu, 09/08/2011 - 12:16 | 1646504 Jack Burton
Jack Burton's picture

Greece defaults and European banks blow up. Bang! I mean BANG!

Thu, 09/08/2011 - 12:39 | 1646608 Ethics Gradient
Ethics Gradient's picture

Unlikely. There may however be some printing.

Thu, 09/08/2011 - 13:39 | 1646850 sun tzu
sun tzu's picture

ECB will print and buy up the bad debt from the banks just like the Fed bought trillions of bad CDO's and MBS's from the US banks. 

Thu, 09/08/2011 - 12:17 | 1646507 Mugatu
Mugatu's picture

Its like breaking up with your girlfriend - it takes several attempts before you both realize its over.

Thu, 09/08/2011 - 12:23 | 1646526 MS7
MS7's picture

I don't understand the critique. Greece cut jobs, pension, salaries during a recession and people are surprised that the economy tanked? You mean if they followed the even stricter requests of the Troika it would have been better? Already the unemployment is at least 16%, hospitals are lacking in supplies, and there is an increase in homelessness. I suppose if the Troika wants to kill off 1/2 the people,  that might be one way of improving the economy. What do you mean "leeching" off the EU? The rescue money is rescuing the banks. The incompetent and servile Greek government could have just defaulted last year and given its people a chance. Instead it wants to make friends with the powerful and the banks.

Thu, 09/08/2011 - 12:30 | 1646527 knukles
knukles's picture

I'll take both for a $Bazillion, Alex.

BTW, was at a dinner of 8 guys last night.  All well educated, comfortable professioanl types... doctors, etc.  One of the fellows is Greek, US naturalized citizen, spends half of year each place, business in both countries.  Topic du jour was Pan-European Clusterfuck.  He was going on and on about how the stupid fucking Germans paid for EVerything in Greece for all the years they were in the EU... roads bridges, pensions, you name it.  He was openly disparaging of the Kraut's absolute waste of money, especially after the integration of E Germany, years of Agricultural Subsidies to  France, etc.
Was an amazing portrayal of the Greek thank you (fuck you very much) attitude toward their northern rich neighbors... and his opinion of the Greek zeitgeist was "Milk the fuckers for anything we can get before they throw us out."

Real eye opener.
Makes one wonder why Germany.... EU.... 
Ah, old conspiracy theories of post war meetings in certain hotels... 

Thu, 09/08/2011 - 13:44 | 1646835 PY-129-20
PY-129-20's picture

"stupid fucking Germans?"

Well, I guess we were foolish enough and deserve that attitude. We believed they would use it wisely. We thought it was our duty to help to build a new Europe. We felt guilty for what we had done. And rightfully so.

Like that Telegraph article. It mentioned our generosity towards our European neighbours. I say - kick these beggars out, end the Euro-project and minimize the current EU. Nigel Farage got it right. We need that money here in our own country. Ordinary people have lost a lot of money during these past years.

No, we need a new Germany here. A Germany that is aware of its past, but also self-confident and has strong and good relations to the USA, Great Britain and Ireland, Netherlands, France, Poland, Russia, China, India and Northern Europe. And we need a much more democratic Germany - like Switzerland.


Thu, 09/08/2011 - 17:47 | 1647890 honestann
honestann's picture

Unfortunately, the chaos that has been caused by trying to FORCE predatory elitist bankster control over everyone in europe and the world seems to have finally destroyed Switzerland too.  If only they had been willing to hold on a bit longer, they might have been able to stay coherent with their excellent history and not destroy their banking system and now even their currency.  What a shame.  Self-destruction on a continent wide scale.

Wake up humans!  We can all be independent AND friendly.  In fact, people who are left alone and not forced to participate in endless elitist wet-dreams are prone to being friendly and even collaborators or partners.  But the lesson is, each case must be fully voluntary by all parties involved.  Those who wish to "opt-out" must always be allowed to fully opt-out, and never be punished or inconvenienced for doing so (beyond not receiving the benefits the cooperative endeavor creates).

Germans should bail.  Be independent.  Your inclinations and habits can be the basis of a great country, a great economy, and do everyone benefit by providing a great example.  Your leaders tried force in WW2, and that was a disaster.  The euro project is ANOTHER attempt at force, albeit not military in nature.  No more force.  No more deals that force anyone to be part of anything they don't wish to be.  And I don't mean "dont force countries", I mean "don't force any individual", which means, end the damn EU, which is nothing but a different kind of force and another way for misguided predatory elitists to play masters over teeming masses of slaves.  Cut the crap.  Get real, and get free.

Thu, 09/08/2011 - 12:24 | 1646533 Cdad
Cdad's picture

What?  Oh, we are now on the "Greece is not fixed" trade?  Didn't know.  Thanks for the I was just about to get levered up on Netflix.  Whew!

Thu, 09/08/2011 - 12:25 | 1646540 Texas Ginslinger
Texas Ginslinger's picture

"There is no threat of Greece exiting the euro zone," government spokesman Ilias Mosialos said. "We are proceeding with reforms quickly."

A statement like that would make Baghdad Bob proud.  Greece obviously hired the right spokesman. 

Thu, 09/08/2011 - 13:34 | 1646823 edotabin
edotabin's picture

Will never forget the scene when Bahgdad Bob was saying that no "agressors" would ever set foot in Iraq and Us tanks were visible behind him.

Thu, 09/08/2011 - 12:25 | 1646542 Mesquite
Mesquite's picture

Didn't Mr. Trichet promise 'unlimited liquidity,,'??

And now this...

So, guess Reality still wins..


Thu, 09/08/2011 - 12:40 | 1646614 Ethics Gradient
Ethics Gradient's picture

It's not a liquidity crisis.

Thu, 09/08/2011 - 13:10 | 1646709 falak pema
falak pema's picture

Its basicly the insolvency of banks now caught between Basel III and their meltdown. But the liquidity is still lurking there mega big if there is a stampede run on a currency started by a huge and concerted short. We will then find out if Trichet's unlimited liquidity pump cans resist :

a) the market speculation carry trades, repeated pump n dump swings, and resulting increasing interest  spreads.

b) inflation spikes...

A double whammy in the race to the bottom on both sides of the pond!

Got to have a supple body to do the giant splits in FED and ECB circles....cover your naked asses where ever you be!

Thu, 09/08/2011 - 12:26 | 1646546 mikmid
mikmid's picture

Crack-up-boom. The fiat race to the bottom revs up, insolvency revs up, global GDP slowdown revs up. Gentlemen start your engines, 1st to the bottom wins.

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