This page has been archived and commenting is disabled.

Spiegel: Greek Exit From Euro Zone Just A "Matter Of Time"; Roundup Of German Press Responses To Referendum

Tyler Durden's picture




 

Spiegel continues to pile it on. Following yesterday's heartfelt thanks to G-Pip (as he is now known due to his impact on the EURUSD with every single public appearance), today they follow it up with: Greek Exit From Euro Zone Just A "Matter Of Time." To wit: "Despite its location on France's glamorous Cote d'Azur, Wednesday evening's meeting likely won't be a pleasant one for Giorgios Papandreou. The Greek prime minister is set to meet with German Chancellor Angela Merkel and French President Nicolas Sarkozy. None of them, one presumes, will be in the mood to enjoy their enchanting surroundings...Should Greek voters, frustrated by round after round of deep austerity measures, reject the bailout deal, it could result in an uncontrolled national bankruptcy. Markets will likely remain nervous until the results of the ballot are in -- meanwhile the euro will move even closer to the abyss. As if to highlight the dangers, German banks on Wednesday announced they were postponing their acceptance of the Greek debt haircut until after the referendum. Without voluntary bank approval, Greece faces a disorderly bankruptcy which could accelerate contagion throughout the euro zone. Papandreou's decision, said European Commissioner for Energy Günther Oettinger, "puts the euro in even greater danger."

More:

Greek Exit From Euro Zone Just A "Matter Of Time"

Last week, it looked as though the euro had been saved. Now, in the wake of Greek Prime Minister Papandreou's announcement of a national referendum on the bailout package for his country, the common currency is even closer to the abyss. Still, say German commentators, it may have been the right move.

Despite its location on France's glamorous Cote d'Azur, Wednesday evening's meeting likely won't be a pleasant one for Giorgios Papandreou. The Greek prime minister is set to meet with German Chancellor Angela Merkel and French President Nicolas Sarkozy. None of them, one presumes, will be in the mood to enjoy their enchanting surroundings.

Leaders of the world's most powerful economies begin arriving on France's south coast on Wednesday night for the Thursday kick-off of this year's G-20 summit. Host Sarkozy had been hoping the gathering would focus on raising funds to boost the effectiveness of the euro backstop fund, the European Financial Stability Facility (EFSF), but the success of the meeting is now in doubt. Papandreou's announcement on Monday evening that he was planning to hold a referendum on the EU bailout package for his country has shocked and infuriated his would-be benefactors -- and sent global markets into yet another tailspin.
The news came less than a week after an all-night bargaining session in Brussels that resulted in an agreement to slash Greek debt by 50 percent, make a further €130 billion in loans available to the country and leverage the EFSF to €1 trillion. Markets immediately calmed and the euro began climbing against the dollar.

A Danger to the Euro

The Greek prime minister's announcement, however, quickly transformed the budding optimism into deep pessimism about the future of the common currency. Should Greek voters, frustrated by round after round of deep austerity measures, reject the bailout deal, it could result in an uncontrolled national bankruptcy. Markets will likely remain nervous until the results of the ballot are in -- meanwhile the euro will move even closer to the abyss.

As if to highlight the dangers, German banks on Wednesday announced they were postponing their acceptance of the Greek debt haircut until after the referendum. Without voluntary bank approval, Greece faces a disorderly bankruptcy which could accelerate contagion throughout the euro zone.

Papandreou's decision, said European Commissioner for Energy Günther Oettinger, "puts the euro in even greater danger."

Still, not everyone was completely repulsed by Papandreou's decision. After all, the Greeks are being asked to put up with severe belt-tightening measures and providing those austerity packages with even more democratic legitimacy could take the wind out of the sails of those who would protest them. The cabinet in Athens on Wednesday unanimously approved the referendum plan. It remains unclear exactly when the referendum might take place, but some officials hinted on Thursday that it could happen before the end of the year.

....

And here is how the broader German press has responded to the G-Pap announcement

The Financial Times Deutschland writes:

"There are many who have, since Monday, been posing the impolite question: Has the Greek prime minister gone crazy? The answer is 'no.' Papandreou merely recognized that his back is to the wall as never before -- and that he will have just as much trouble selling last week's bailout package to the Greek public as he has the radical austerity path his government has followed. Greece's debt crisis has long since become a crisis of democracy. Given this situation, Papandreou decided to take the option of last resort."

"There is much to criticize: the lack of coordination with his European partners; the apparent lack of a real plan to present to his countrymen and women. Most of all, however, his apparent indifference to the collateral damage a negative vote would have for Europe and its common currency."

"It is a risky bet. If, however, Papandreou ... is able to convince his people of the correctness of his path, then the euro bailout efforts would be on much more stable ground than has been the case thus far."

The center-left Süddeutsche Zeitung writes:

"As tough as it sounds, Greek politics is no longer just the business of the Greeks alone. ... Greece's fate also determines that of the other 16 euro-zone members. And if it's true that the future of the European Union hangs on the euro, then the entire project is in jeopardy. The summits in Brussels last week were an expression of the responsibility that Europe is willing to take on for Greece. But where then is Greece's responsibility for Europe?"

"With his unilateral decision to hold a referendum, Papandreou has tossed Europe back into the uncertainty of the days before the EU summit. Worse still, while it was at least possible to take steps forward in the last few weeks, now a complete standstill looms. What further steps could possibly be taken when no one will know for weeks, or perhaps months, how much longer Greece will remain part of the euro?"

"Giorgios Papandreou has some hard months behind him. The courage and political resolution that he has shown so far deserve the highest respect. One can even understand that the prime minister finally wants some clarity, and not least to discipline the destructive opposition in his country. Therefore it wouldn't be just bitter irony if he were to lose in the parliamentary vote of confidence or later in the referendum. It could also be very expensive for Europe."

The left-leaning daily Die Tageszeitung writes:

"Predictions that the Greek voters will reject the debt haircut are too premature. Most know that their country would have been bankrupt in November without bailout measures. But they also know that the 'haircut' from Oct. 26 also won't protect them from being scalped in the end. It's clear to everyone that the rigorous austerity measures that are strangling their future prospects will continue."

"To mobilize the voters, Papandreou must emphasize what the EU debt haircut agreement has brought them -- the promise that their country won't be shut out of the euro zone. A return to the drachma is a nightmare scenario for two-thirds of the population. But even an affirmation in a referendum won't end the protests against the austerity measures. The prime minister's high-wire act will continue even if he's victorious."

Financial daily Handelsblatt writes:

"It would probably be best for the euro zone if Greek Prime Minister Papandreou lost the parliamentary vote of confidence at the end of this week. Then it would be clear that Greece would denounce its partners and the euro zone could concentrate on countries, like Ireland and Portugal, which are determined to contribute for their part of the rescue fund."
"Internally Greece is so divided that one can no longer be sure if the will for self-help survives. And a drowning person who throws the life preserver back can't be saved."

"The question is, however, whether there is still enough time to wait out the referendum, and whether, after the last two years of the Greek drama, another quarter of a year of uncertainty is imaginable. ... Euro-zone politicians have hardly any other choice but to avoid another months-long cliffhanger. That could be successful if the irresponsible conservative opposition is finally put under some serious pressure. Europe could turn the tables and begin a game of blackmail by threatening to take back the rescue aid if Greece doesn't quickly clear things up. But that would be risky too -- and it also means more waiting."

Read full article here

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Wed, 11/02/2011 - 10:30 | 1836549 GeneMarchbanks
GeneMarchbanks's picture

So... in 2087?

"There is much to criticize: the lack of coordination with his European partners; the apparent lack of a real plan to present to his countrymen and women. Most of all, however, his apparent indifference to the collateral damage a negative vote would have for Europe and its common currency."

Pap sat down with Merkozy, looked at their 'plan', realized these people are batshit, kamikaze-like extremists and said 'Forget it'

Or the Chinese made him an offer he couldn't refuse...

Wed, 11/02/2011 - 10:32 | 1836579 TruthInSunshine
TruthInSunshine's picture

Much sooner.

Remember, this is just Greece, which represents possibly a mere 5%, or so, of the DebtApocalypse that PIIGS+France+UK owe on their sovereign bonds, NOT COUNTING the necessity of having to recapitalize the private and quasi-private (i.e. nationalized or nearly nationalized) 'banks,' nor accounting for derivative exposure that the many, many counterparties of all this EU sovereign and EU bank debt exist.

Just think: If things are this bad now, at the prospect of Greece not going with the agenda, as austerity not only hasn't really bitten yet, but is only spoken of, is their any reason to suspect things will go more smoothly in Spain, Italy, or the rest of the nations in the EU that owe the loansharks more than they can possibly every repay?

Greece is the mosquito on the elephant's ass.

 

Wed, 11/02/2011 - 10:33 | 1836588 disabledvet
disabledvet's picture

That's what they said about Lehman brothers.

Wed, 11/02/2011 - 10:35 | 1836596 TruthInSunshine
TruthInSunshine's picture

Lehman Bros was to the EU DebtApocalypse what Waddell & Reed are to the Primary Dealers, unless you're using that new, fuzzy math.

Wed, 11/02/2011 - 10:53 | 1836697 HoofHearted
HoofHearted's picture

Unless you consider everything that has happened since ISDA said that this is not a credit event, setting everything into motion for a lot of bad stuff to happen. If Greece just outright defaults, then ISDA wouldn't have so much power in the situation. Or if it tried to...well, guillotines come to mind.

Wed, 11/02/2011 - 10:34 | 1836593 GeneMarchbanks
GeneMarchbanks's picture

To paraphrase Bass: " Sovereign defaults occur in clusters not isolated"

It's all too painfully slow if you ask me.

Wed, 11/02/2011 - 13:39 | 1837609 dlmaniac
dlmaniac's picture

As Ben Davis calls it, "If one of the PIIGS flies, all will."

Wed, 11/02/2011 - 12:05 | 1837142 Freddie
Freddie's picture

The level of absurdity is incredible.  A country is broke and expects other countries to bail them out.   And other countries thinking they should bail them out.  The only thing more absured is Obama bailing out govt union workers in the US in places like IL, CA and others by looting the Treasury.

Wed, 11/02/2011 - 12:43 | 1837345 Lebensphilosoph
Lebensphilosoph's picture

Countries can't think.

Wed, 11/02/2011 - 21:07 | 1839460 Chuck Walla
Chuck Walla's picture

The Chinese LOVE Ouzo and lamb!

Wed, 11/02/2011 - 10:27 | 1836552 gojam
gojam's picture

Just get it over with already !

 

Wed, 11/02/2011 - 10:25 | 1836557 maxmad
maxmad's picture

collapse, bitchez!

Wed, 11/02/2011 - 10:30 | 1836575 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Drachma, bitchez.

Wed, 11/02/2011 - 10:39 | 1836591 gojam
gojam's picture

Count Drachma !

One, Two, Three, Four ! Four Dollars to the Drachma, ha, ha, ha, HA!

(this post was brought to you by the letters Q and E and by the number 4)

Wed, 11/02/2011 - 12:20 | 1837210 Taterboy
Taterboy's picture

Greeks to have a new currency called the "Feta". Yummy, edible and can be grated over a nice salad of greenback lettuce.

Wed, 11/02/2011 - 10:26 | 1836563 Tsar Pointless
Tsar Pointless's picture

Can't...hold...breath...much...longer...getting...blue...in...face...fee...ling...faint...

Wed, 11/02/2011 - 10:32 | 1836585 GeneMarchbanks
GeneMarchbanks's picture

Voting... Voting... Processing... Processing...

Wed, 11/02/2011 - 10:27 | 1836564 Mugatu
Mugatu's picture

Ahhh!  I love the smell of lamb burning in the morning!  It smells like victory!

Wed, 11/02/2011 - 10:30 | 1836577 kita27
kita27's picture

who cares, the Euro isnt even low, it was 1.15 to the US dollar not even a year ago and everyone thinks the world is coming to an end when its trading in the high 1.30's.  Vote NO to the Euro!

Wed, 11/02/2011 - 11:31 | 1836950 NotApplicable
NotApplicable's picture

LOL

Post of the Day!

Wed, 11/02/2011 - 12:40 | 1837326 BigJim
BigJim's picture

Exactly. Pull up a five year chart, and the EURUSD is well within its trading range.

Wed, 11/02/2011 - 10:31 | 1836580 disabledvet
disabledvet's picture

"Well! Phuck you very much too!" followed up with a heartfelt "You're in BIG trouble mister " to the Poopy Doo.(And a fine French mint of course.)

Wed, 11/02/2011 - 10:32 | 1836584 AldoHux_IV
AldoHux_IV's picture

It would be in the best interest of any nation that wishes to retain its sovereignty to exit the euro and not participate in one of the biggest fails at consolidating power into the hands of the very idiotic and incapable few.

Wed, 11/02/2011 - 10:35 | 1836599 disabledvet
disabledvet's picture

Does that include NewYork?

Wed, 11/02/2011 - 10:32 | 1836586 lizzy36
lizzy36's picture

In between Sarkozy having a private dinner (on his knees) with chinese PM, they will have a "meeting" about Greece.

Can hardly wait for Obama to arrive. Bacuse after Cramer, this community organizer/consitutional law professor,he must be one of the wolrds foremost experts on EU soverign debt and the consequences thereof.

Someone should ask Obama to define CDS. Seriously just for shit and giggles. Because my bet is he has no clue what a Credit Default Swap is.

Wed, 11/02/2011 - 10:35 | 1836595 achmachat
achmachat's picture

his teleprompter is the all-knowing!

Wed, 11/02/2011 - 10:39 | 1836623 disabledvet
disabledvet's picture

Well we do know now he has no idea what an economy is (h/t Ms Goldman of Bloomberg News.) kinda scary if you think about it. "what's an economy?"

Wed, 11/02/2011 - 12:35 | 1837291 pain_and_soros
pain_and_soros's picture

His idea of an economy is  the government spends money to create jobs....like the one he had at Harvard, like his community organizer job, in the Senate, etc...  In fact the government is the source of funds for Harvard (& other) student loans, research grants & subsidies, etc., Government is also the source of funding for aid to organizations he helped as community organizer.

Obama from his life experience doesn't know anything other than the Fed as the creator of money & jobs & every other good thing in the country and also knows that Wall St (i.e., the Fed) is who paid for his election victory...

 

Wed, 11/02/2011 - 10:52 | 1836699 GeneMarchbanks
GeneMarchbanks's picture

'Someone should ask Obama to define CDS. Seriously just for shit and giggles. Because my bet is he has no clue what a Credit Default Swap is.'

If you want a long, convoluted, insipid answer. He'll manage to seem intelligent to the average moonbat yet use empty PR talk.

Instead ask him about the MF Global fiasco and if it's a moral or legal problem.

Wed, 11/02/2011 - 11:32 | 1836958 NotApplicable
NotApplicable's picture

And he'll tell you that he cannot comment on an ongoing investigation.

Wouldn't be prudent.

Wed, 11/02/2011 - 12:24 | 1837234 Taterboy
Taterboy's picture

Obomie knows what a credit default swap is. It's when you don't pay your car loan the repo MAN comes to the hood and takes your car. Thus "swapping" riding for walking.

Wed, 11/02/2011 - 10:35 | 1836594 Mister Ponzi
Mister Ponzi's picture

"As tough as it sounds, Greek politics is no longer just the business of the Greeks alone. ... Greece's fate also determines that of the other 16 euro-zone members. And if it's true that the future of the European Union hangs on the euro, then the entire project is in jeopardy."

So: A referendum not only in Greece but in all 17 member states?!? Bring it up, Bitchez!

 

Wed, 11/02/2011 - 10:35 | 1836598 Big Jim
Big Jim's picture

Wait a minute: We always complain that Europe is not enough democratic, that all decisions are taken by administrators in Brussels. 

Couldn't we see this referendum in Greece as a attempt to give voice to the people for once??

Wed, 11/02/2011 - 10:36 | 1836603 achmachat
achmachat's picture

no... it's an attempt for G-Pap to say: "it wasn't me!"

Wed, 11/02/2011 - 10:50 | 1836680 Benito
Benito's picture

To consult the citizens? That would be so irresponsible in a western democracy!

 

Wed, 11/02/2011 - 10:38 | 1836613 agent default
agent default's picture

G-Pap and his family are involved in trading Greek CDSs.  Stop trying to guess what he has in mind it is obvious what he has in mind.

Wed, 11/02/2011 - 12:22 | 1837223 drider
drider's picture

proof?

Wed, 11/02/2011 - 13:33 | 1837576 Treason Season
Treason Season's picture

 

Recently, in an interview on Greek television, MP Panos Kammenos, made allegations that if true would point to a massive scam undertaken by senior members of Greece’s ruling elite.  These allegations were repeated by Mr. Kammenos ... . In a nutshell, they allege that Papandreou and members of his team presided over the sale of 1.3 billion dollars worth of credit default swap contracts (CDS on Greek sovereign debt) on or around December of 2009, shortly after coming to power. The $1.3 billion worth of insurance protecting against a Greek default was bought during the spring and summer of the same year, by the Hellenic Postbank, a public banking arm of the Greek government. (In other words, public funds to be used for public insurance against default).

hat4uk.wordpress.com/.../papandreou-accused-of-greek-debt-lifebelt...

 

Wed, 11/02/2011 - 10:39 | 1836620 rosex229
rosex229's picture

i doubt this referendum issue will be what forces greece out of the eurozone. if papandreau's govt even survives until the referendum it still requires parliamentary and presidential approval after the vote. in fact, if the people vote no, which is unlikely because of how the powers that be will phrase the ballot question, papandreau will simply call for elections. however, after elections, the opposing party is in favor of renegotiating the terms of the deal, and that could be it for greece. 

 

its my belief that the upcoming bailout of italy, and/or credit downgrade of france within the next 6 months will be what reignites major negative swings in the markets. evebn before that we could see a credit downgrade of the u.s., which didn't go well last time, but will be even worse this timne around because it won't be taken as a one off event but a continuing degredation.

Wed, 11/02/2011 - 10:42 | 1836632 disabledvet
disabledvet's picture

Define "that could be it."

Wed, 11/02/2011 - 11:57 | 1837112 rosex229
rosex229's picture

 refers to the dispeasure of the troika upon hearing greece is demanding further haircut leading to a loss of aid and getting booted from the eu. personally g-pap is making a good move with the referendum. a 50 percent haircut, which applies only to a fraction of their privately held debt would leave the country in a position of permanently high debt leading to yet another haircut later on anyway.

Wed, 11/02/2011 - 10:39 | 1836621 Cone of Uncertainty
Cone of Uncertainty's picture

Please Greece isn't going anywhere.

There is a reason for this apparent 180 degree change in policy by G-Pap and his cabinet--they ALL voted to hold the referedum vote--and it has to do with money.

The checks have already been mailed and the plan is brilliant.

The vote will give G-pap et al cover--but the key here is the following:

The vote will occur, and it will fail, thus allowing for the baoilout bullshit to continue and the Euro to be saved...yayyyyyy!!!

Why?

Because the fucker will be rigged that's why.

Yep, G-pap has already got this setup--the vote no matter what the actual count will fail.

He and his cronies get paid and the Socialist dream lives on for all those fuckers hell bent on seeing the EU stay together.

The ony problem though, is that civil war is about to break out inside the country and a military takeover will occur--depsite the preemptive measure to avoid such a fate by replacing all the generals.

 

Wed, 11/02/2011 - 10:44 | 1836646 disabledvet
disabledvet's picture

"we're flying blind...and we're stoned to the bejesus. What could possibly go wrong?"

Wed, 11/02/2011 - 10:48 | 1836667 john39
john39's picture

seems like a plausible explanation.  I can't come up with anything better.    something is going on behind the scenes.  If nothing else, the Euro clan seems to want to continue the Greek drama for some reason...  to drag it out longer.   a distraction perhaps, but for what?

Wed, 11/02/2011 - 10:57 | 1836723 Cone of Uncertainty
Cone of Uncertainty's picture

Its a gamble to try and calm the populace down.

Give the people the vote they want, kowing full well in advance what the outcome will be.

New military leadership needed to be put in in order to attempt this.

G-pap, the cabinet and others will have cover--and I'm not taling about political cover, this is cover so that they may someday walk the streets again without fear of being killed by a mob.

 

Wed, 11/02/2011 - 10:42 | 1836633 GCT
GCT's picture

The military probably told Gpap to do the referendum or they were going to take over Greece.  The minister of defense and four gererals were replaced.  Think about it.  The military took over Greece before and with these austerity measures imposed on the Greeks, the military probably gave Gpap an ultimatum to do this or else he was out and the military was going to step in.

I do not blame them but the EU was stupid to keep dropping Euro's down the black hole.  Wait for it Iceland is coming.  What bothers me is will Italy leave the EU as they hate austerity and are the 6th largest economy in the world.  A soverign is going to fall and this is going to get very ugly. 

 

Wed, 11/02/2011 - 13:22 | 1837536 Canucklehead
Canucklehead's picture

I agree with your assessment.  I expect the new military leadership is the same as the old military leadership.  If things go sideways, a new minister of defense is about as useful as a windsock blowing in the wind.  It is pretty much guaranteed that the new minister of defense has no meaningful infrastucture in place to manage a deteriorating situation.

Wed, 11/02/2011 - 10:43 | 1836637 youngman
youngman's picture

What..we have to wait until December for a vote....we need some new crisis before that...or I am going sailing or something....."coach...let Spain play...let him in the game...or Portugal..or Italy...they have sat on the bench for to long....come on coach..let em play too"

Wed, 11/02/2011 - 10:46 | 1836653 xcehn
xcehn's picture

Perverted democracy will provide cover for the oligarchy.  The referendum was already decided when it was proposed.

Wed, 11/02/2011 - 11:34 | 1836971 NotApplicable
NotApplicable's picture

Shhh! You're not supposed to tell!

Oh, and 'perverted democracy' is redundant.

Wed, 11/02/2011 - 10:51 | 1836656 xtop23
xtop23's picture

 Im so tired of this shit.

 The people involved will keep spewing headlines of no real worth but give the trading machines ammo allowing them to keep this rediculous charade afloat indefinately.

 A last minute deal will be struck ...... again.

 Can will be kicked...... rinse .. repeat.

 You would think that at some point "market forces" or a threshold would be reached where this whole thing goes Mt. Vesuvius, but Im starting to doubt more and more if it will ever be allowed to actually do so.

 Theyve kept this thing going longer than anyone could have imagined possible in their wildest drug induced hallucination. 

 What a mindfuck.

Wed, 11/02/2011 - 10:47 | 1836661 disabledvet
disabledvet's picture

In other news "Joe Kernan is on the hook for hundred million dollars bets that the S&P would collapse" No news on what the off setting trades were. Back to you at HQ!

Wed, 11/02/2011 - 10:47 | 1836662 Racer
Racer's picture

And in the meantime the Euro goes higher

Wed, 11/02/2011 - 10:48 | 1836670 LawsofPhysics
LawsofPhysics's picture

So if we follow this logic to it's eventual conclusion, Germany is the only country left in the euro zone?  I'm confused, if Greece gets out debt free why in the hell wouldn't everyone else who wanted to do the same?  Good luck with all this.

Wed, 11/02/2011 - 10:49 | 1836673 AngryGerman
AngryGerman's picture

hope they get Drachma, gonna be supercheap to go on holidays there then! 20 cents for the gyros

Wed, 11/02/2011 - 11:08 | 1836800 j0nx
j0nx's picture

Agreed. I plan on going there and scoring me two or three hot Greek chicks with nice hairy underarms. MMMM, yummy. Greece will be a tourist mecca if they leave the EU and start over cheaply, assuming the proles don't burn it down during the transition into cheap tourist destination.

Wed, 11/02/2011 - 10:49 | 1836675 mess nonster
mess nonster's picture

Ponzi can only be remedied by more Ponzi...

50% haircut actually only 16%...

No CDS trigger makes people ask... "why did I buy that fucking worthless insurance?" It makes everyone else ask,
"Why did I use that fucking worthless fucking CDS as collateral for derivative- derivatives casino betting when it now isn't worth the electrons needed to keep it alive on that server?"

How to leverage 400 billion into 1 trillion? Let's beg er, "ask" the Chinese! Oops! They say they don't want rotten fish!

And all this before the Greek people get to vote on the merits of the plan? I think I know where this vote is going...

Goldman, did you know your victory would be this complete whe you shorted your very first Greek bond?  (Well, if only Corzine had been a Jew, he wouldn't have gotten his goy ass in such a sling!)

 

Wed, 11/02/2011 - 11:36 | 1836987 NotApplicable
NotApplicable's picture

Makes one wonder how many other 'hedged' CDS holders are shitting their pants right now. Surely MF wasn't the only sucker.

Wed, 11/02/2011 - 10:53 | 1836704 flacorps
flacorps's picture

Step 1: Recognize that the PIIGS do not belong at the grown ups' table.

Step 2: Bind the PIIGS into a sub-unit of the European currency union and issue a separate EuroSur currency (at a 1:1 ratio versus the Euro) into which all obligations of the PIIGS sovereigns will be retroactively denominated.

Step 3: Allow the PIIGS to collectively devalue their currency as they may unanimously agree.

The resultant order and transparency will offset the cost of the resultant haircuts.

Wed, 11/02/2011 - 11:41 | 1837005 NotApplicable
NotApplicable's picture

I think you're forgetting that the world is run by insane criminals.

Step 1: Undermine capitalism.

Step 2: Undermine society.

Step 3: Own everything.

The resultant disorder and translucency will offset the cost of the resultant haircuts.

Wed, 11/02/2011 - 11:03 | 1836759 j0nx
j0nx's picture

Silly proles thinking that the vote isn't already rigged or hacked already if they are using the E-machines. Silly silly proles. Voting = waste of time.

Wed, 11/02/2011 - 11:18 | 1836852 Lord Peter Pipsqueak
Lord Peter Pipsqueak's picture

So another 3 months of "uncertainty"while we wait for the referendum result.Markets are supposed to hate uncertainty,so why are the markets and the EURO ALL UP TODAY THEN?

Anyone remember Ireland's vote on the Lisbon Treaty?They had to do it again until they got the "right" decision, i.e a YES.By the time the Greek referendum comes around,what do you think will be printed on the ballot papers?

I'm pretty sure it won't be "Reject/accept latest bailout proposal and austerity measures"

Wed, 11/02/2011 - 11:28 | 1836921 MS7
MS7's picture

They are betting on the fact that being in the euro provides a psychological benefit to many Greek people. It seems silly but I believe it is true. One of the things the finance minister said was something like-- We're between East and West and you have a choice if you want to stay in the West... It's so stupid! Like the West is something to brag about. Anyway, in the even that attempts at brainwashing fail, they can always rig the vote.

Wed, 11/02/2011 - 12:48 | 1837369 Lebensphilosoph
Lebensphilosoph's picture

It's no coincidence that the PIIGS also have the lowest, and significantly lower, mean in IQ scores on the European continent.

These 'Greek' impostors in the land of Homer and Themistokles ought to be kicked out, and our 'European' bankers and politicians along with them.

Do NOT follow this link or you will be banned from the site!