Scandal: Greece To Receive "Negative" Cash From "Second Bailout" As It Funds Insolvent European Banks

Tyler Durden's picture




 

Earlier today, we learned the first stunner of the Greek "bailout package", which courtesy of some convoluted transmission mechanisms would result in some, potentially quite many, Greek workers actually paying to retain their jobs: i.e., negative salaries. Now, having looked at the Eurogroup's statement on the Greek bailout, we find another very creative use of "negative" numbers. And by creative we mean absolutely shocking and scandalous. First, as a reminder, even before the current bailout mechanism was in place, Greece barely saw 20% of any actual funding, with the bulk of the money going to European and Greek banks (of which the former ultimately also ended up funding the ECB and thus European banks). Furthermore, we already know that as part of the latest set of conditions of the second Greek bailout, an 'Escrow Account" would be established: this is simply a means for Greek creditors to have a senior claims over any "bailout" cash that is actually disbursed for things such as, you know, a Greek bailout, where the money actually trickles down where it is most needed - the Greek citizens. Here is where it just got surreal. It turns out that not only will Greece not see a single penny from the Second Greek bailout, whose entire Use of Proceeds will be limited to funding debt interest and maturity payments, but the country will actually have to fund said escrow! You read that right: the Greek bailout #2 is nothing but a Greek-funded bailout of Europe's insolvent banks... and the Greek constitution is about to be changed to reflect this!

The smoking gun quote:

The Eurogroup also welcomes Greece's intention to put in place a mechanism that allows better tracing and monitoring of the official borrowing and internally-generated funds destined to service Greece's debt by, under monitoring of the troika, paying an amount corresponding to the coming quarter's debt service directly to a segregated account of Greece's paying agent.

As for the priority of payments - it is more than clear:

Finally, the Eurogroup in this context welcomes the intention of the Greek authorities to introduce over the next two months in the Greek legal framework a provision ensuring that priority is granted to debt servicing payments. This provision will be introduced in the Greek constitution as soon as possible.

So there you have it: the Second Greek bailout is nothing but the first Greek bailout of Europe's banks! And the Greek constitution is about to be changed to reflect that.

Congratulations Greece - you just got royally raped by your own unelected rulers and you didn't even know it.

Full Eurozone document (source).

 

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Wed, 02/22/2012 - 13:20 | 2185269 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

What should we expect from a bunch of thieving technocratic banksters?

Wed, 02/22/2012 - 13:21 | 2185280 Harlequin001
Harlequin001's picture

Ah the ability to call a debit a credit and a credit a debit is a wonderful thing...

and an insult to humanity...

Wed, 02/22/2012 - 13:22 | 2185286 bigdumbnugly
bigdumbnugly's picture

"So there you have it: the Second Greek bailout is nothing but the first Greek bailout of Europe's banks! And the Greek constitution is about to be changed to reflect that."

 

constitutions are so 18th century lately.

Wed, 02/22/2012 - 13:26 | 2185297 Harlequin001
Harlequin001's picture

and in a stunning move, Harlequin001 was found living half way around the world and showing nothing if not a middle finger to Europe.

Go fuck yourselves, twats, and take your Tax Information Exchange Agreements with you...

 

Wed, 02/22/2012 - 13:27 | 2185312 Troll Magnet
Troll Magnet's picture

Let's just be thankful that these guys are in charge and go fuck ourselves.  

Wed, 02/22/2012 - 13:30 | 2185328 Harlequin001
Harlequin001's picture

I've been trying to fuck myself all my life but it seems the easiest way is to simply move to Greece.

Et Voila, instant shagging...

Wed, 02/22/2012 - 13:54 | 2185441 nope-1004
nope-1004's picture

Greedy broke bansksters are gettin' desperate.

LOL.  Watch the world crumble in a matter of months.  Fuckers are ruining all forms of finance.  Idiots.

Wed, 02/22/2012 - 13:58 | 2185466 The Big Ching-aso
The Big Ching-aso's picture

 

 

Yesterday what was real is now surreal.   Tomorrow what's surreal will be unreal.

Wed, 02/22/2012 - 14:04 | 2185490 TruthInSunshine
TruthInSunshine's picture

Banksters own the earth, thanks to Deep Capture & the fractional reserve banking Ponzi of a foundation that the economy is built upon.

Any questions?

Wed, 02/22/2012 - 14:23 | 2185531 BaBaBouy
BaBaBouy's picture

EU Bailout ...

 

Giant Ponzi Fraud ???

(( Maddoff Wondering WHY He Is In Prison... ))

 

Wed, 02/22/2012 - 14:25 | 2185583 Careless Whisper
Careless Whisper's picture

The really important part of the deal is that the Greek Constitution is being amended so that imterest and principal on Greek Bonds will be paid FIRST, before anything else.  Think about that.

Wed, 02/22/2012 - 14:21 | 2185565 DoChenRollingBearing
DoChenRollingBearing's picture

@ Truth

They don't own ALL of the gold.

Wed, 02/22/2012 - 15:47 | 2185990 TruthInSunshine
TruthInSunshine's picture

From someone far more of an insider (and vastly more intelligent) than myself:

 

"The Bankers own the earth. Take it away from them,
but leave them the power to create deposits,
and with the flick of the pen they will
create enough deposits to buy it back again."

Wed, 02/22/2012 - 17:15 | 2186359 caconhma
caconhma's picture

People are stupid and get what they deserve.

To long Greek people lived in paradise of promises and "credit cards" spending. Greeks continuesly elected polititions who promise a lot for notyhing.

What do they expect now? Jewish Banking Mafia will take care of them. Another general strike.  It is really the time to face reality and to take care of trators among them.

Wed, 02/22/2012 - 18:31 | 2186665 sgorem
sgorem's picture

ahhh, i love the smell of tear gas in the morning..........

Wed, 02/22/2012 - 20:49 | 2187232 Element
Element's picture

What if Greeks just physically abandoned the EU (pronounced EeeewwwWWW!!) and started getting in little boats to cross the Mediterranean bound for Libya, declaring themselves to be refugees fleeing an unelected tyrannical dictatorship that was starving them to death, and robbing them of what little they have remaining, and enslaving their children, and vociferously lobbied the UN for sanctions to be imposed on the Eeeeewwww's exports, and an oil embargo, plus relentless precision airstrikes on Brussels, in advance of a Russian and Chinese backed regime-change, to rid the world of a barbarous dictatorial vermin class?

da sickurity council will savor us!

Wed, 02/22/2012 - 14:01 | 2185481 Troll Magnet
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this is finance?  is this what they teach in college?  damn...the best major ever?

Wed, 02/22/2012 - 13:29 | 2185326 Manthong
Manthong's picture

What do you expect from a world that considers a liability to be an asset?

Wed, 02/22/2012 - 13:35 | 2185358 Harlequin001
Harlequin001's picture

a freebie handout per chance?

Wed, 02/22/2012 - 14:23 | 2185577 snowball777
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A pound of flesh?

Wed, 02/22/2012 - 13:45 | 2185404 Muddy1
Muddy1's picture

Whatever you call it, debit, credit, royal screw job, the bankers win again.  Can I get the franchise rights for selling KY jelly in Greece?

Wed, 02/22/2012 - 13:49 | 2185421 Harlequin001
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You can, but I don't think anyone's got any money...

Wed, 02/22/2012 - 14:25 | 2185585 blindfaith
blindfaith's picture

 

 

No, but you will be able to sell a truckload of KY on the streets of America very soon. 

We are going to need more than what Walmrts has in order to take the cost of this up the USA's ass....because we all know who is going to pay for it and it is NOT the French and it is not the wealthy.

Wed, 02/22/2012 - 15:50 | 2186002 knukles
knukles's picture

Why would Greeks want Kentucky Jelly?

Wed, 02/22/2012 - 15:54 | 2186030 johnQpublic
johnQpublic's picture

1)better than sand

2)astroglide supplies are depleted

Wed, 02/22/2012 - 13:42 | 2185375 vast-dom
vast-dom's picture

Don't expect anything. Just sit back and watch the well deserved failure to fall out of this venal nonsense. We are dealing with thieving gold-diggers (don't want to give whores a bad name). 

I remember this one POS gold digger chick who would have her real estate pal illegally check out the income of guys she would go on prospective dates with from online sites where she would troll -- funny how in the end she ended up screwing a broke bum in the backseat of her car all while living at her mom's house to better afford her fake lips -- this is karma boys and this is what is going to happen to our pals in Greece -- let's just hope after this shit gets cleared up Greece can model herself after Iceland, though i doubt it....

Wed, 02/22/2012 - 13:49 | 2185427 Bring the Gold
Bring the Gold's picture

Your analogy is rather poor. A better analogy would be to blame the teen addict who took heroin free of charge from a 40 year old multiple felon drug dealer with the promise of more. Eventually the drug dealer wanted money and when the teen couldn't pay, the dealer forced him out on the streets to suck the cocks of bankers to pay for his own addiction.

Were the Greeks dumb for taking the money? Sure. Did they have a choice? Probably not really. By the way pal unless you live in Singapore your government is borrowing money in YOUR name and you will get Greeked in due time.

The difference between Greece and Iceland is that Iceland was slightly less corrupted and controlled. Sounds like Iceland is getting it in the can from vulture funds instead of banks which are probably owned by the same people. No where to run from the New World Order. Keep thinking you are morally superior though, you'll learn...the hard way.

Wed, 02/22/2012 - 14:04 | 2185453 vast-dom
vast-dom's picture

My analogy is not poor at all, it is just incomplete: the women in question WAS an ADDICT! So thanks for filling it in. And yes I am morally superior to the trash, maybe not to you and your sanctimonious judgements of posters here! 

 

And don't you find it funny that you equate an ancient culture and nation like Greece, home of Plato and Aristotle and essentially origin of all Western thought, to a child whereas the criminals of Europe are the 40-somethings -- that is the poor analogy! 

Wed, 02/22/2012 - 14:34 | 2185617 snowball777
snowball777's picture

They did run around talking about 'the gods' a lot and buggering both little boys and slaves. Can you really blame us?

I hope Heraclitus can get an exit visa.

Wed, 02/22/2012 - 14:40 | 2185647 vast-dom
vast-dom's picture

i guess greece today is the little slave boy to europe. oh well, the ANALogy is quite apropos. and the gold digger chick is still probably getting it in the you know where...

Wed, 02/22/2012 - 14:42 | 2185658 vast-dom
vast-dom's picture

And just like the greek politicians knew exactly what they were doing, so did the bankers. but alas, the gold digger and the banker always revert to the identical excuse: we didn't know what we were doing. getting fucked (over) with a smile. 

Wed, 02/22/2012 - 13:54 | 2185449 sgorem
sgorem's picture

vast', pardon the rude interjection here, but would you happen to have her phone number? I'm kinda low on cash right now, but I've cleaned out the back seat of my '91 gmc pickup. thanks in advance....... 

Wed, 02/22/2012 - 13:57 | 2185459 vast-dom
vast-dom's picture

Hah! No I don't have her digits. But I'm sure you can get some VD from fake-titted fake-lipped gold diggers elsewhere, no? And '91 is nice vintage for ur GMC btw.

Wed, 02/22/2012 - 13:59 | 2185468 WonderDawg
WonderDawg's picture

You knew that chick, too? Good news is, I'm not a bum anymore. I must say she did have a nice backseat.

Wed, 02/22/2012 - 14:07 | 2185501 vast-dom
vast-dom's picture

let me assure you that the bum is still a bum and the gold digger is, well, fatter and older and still a sad case, more at cationary tale.

Wed, 02/22/2012 - 14:23 | 2185571 WonderDawg
WonderDawg's picture

Ah, different gold digger then. They all get what they deserve, in the end. Karma, bitchez.

Wed, 02/22/2012 - 13:55 | 2185452 carbonmutant
carbonmutant's picture

The real thieves here are the members of the Hellenic Parliament who bought the story that there was nothing that could be done to save the people of Greece but if they voted to change the constitution they could at least save themselves...

Wed, 02/22/2012 - 14:09 | 2185512 FL_Conservative
FL_Conservative's picture

At least the banksters are happy: that's what we're all here for anyway.

Wed, 02/22/2012 - 14:42 | 2185661 non_anon
non_anon's picture

sounds just like the AIG "bailout"

Wed, 02/22/2012 - 18:07 | 2186578 LookingWithAmazement
LookingWithAmazement's picture

Storm in a teacup, as ever. Greece will be saved next month. Believe me, "they" will not let Greece default, on a lousy 14 billion euros. In the end, mr Draghi will simply print that tiny amount and Greece can pay off. No default, no collapse. Markets will rally. Boring world we live in.

Wed, 02/22/2012 - 19:28 | 2186944 Buck Johnson
Buck Johnson's picture

They will start to know later in the week when it hits them how much they have been robbed.

Thu, 02/23/2012 - 17:19 | 2190637 robertsgt40
robertsgt40's picture

I wonder if Greece gets a toaster with the deal?

Wed, 02/22/2012 - 13:18 | 2185270 oogs66
oogs66's picture

Squeal like a pig

Wed, 02/22/2012 - 13:19 | 2185272 oogs66
oogs66's picture

For about the 100th time, maybe Greece shouldn't have a technocrat in charge?

Wed, 02/22/2012 - 13:28 | 2185302 Ghordius
Ghordius's picture

For about the 1000th time, maybe Greece has a legally and freely elected PARLIAMENT that is responsible to put a government in charge? http://en.wikipedia.org/wiki/Hellenic_Parliament AND http://en.wikipedia.org/wiki/Parliamentary_system

Wed, 02/22/2012 - 13:31 | 2185334 GeneMarchbanks
GeneMarchbanks's picture

Complete loss of faith in the political system unless they actually get an opposition that understands the innerworkings and has the courage to halt the corruption. Short of that, it only gets worse.

Wed, 02/22/2012 - 13:35 | 2185351 falak pema
falak pema's picture

the cupid leading the blind leading the impoverished. Greek hamburger, three layers, all to be eaten by the banks.

Wed, 02/22/2012 - 13:48 | 2185419 12ToothAssassin
12ToothAssassin's picture

I thought the only reason to undertake an opposition stance was to muscle in on your share of the corruption?

Wed, 02/22/2012 - 14:15 | 2185544 Ghordius
Ghordius's picture

this applies to many politicians - though not for (careful, heavy word incoming) patriots

every nation get's in some tight spots, from time to time, I have some faith in the Greek spirit of patriotism, I personally witnessed some. It just has to emerge...

Wed, 02/22/2012 - 21:15 | 2187335 Element
Element's picture

I notice a lot of rubes saying Greece is just taking it and not doing much.  But I've seen a lot of Greek riots, bombings of banks, burning buildings, and even burning people since March 2010, plus regular massive strikes and demonstrations, and relentless attempts to storm the parliament, as well as prominent politicians being attacked, bashed and fleeing for their lives, while being denied the ability to vote on any of it, in the home of democracy, and even resorting to covering gigantic monuments with even larger banners, telling the Eeeeewwww to get-stuffed.

The Greeks are making it very clear what they think.

Only the traitors in cushy high official positions are ignoring this and you can be sure their names are known and they are on very lengthy 'TO-DO' lists.

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