Standard Chartered CEO Says Greek Default Inevitable

Tyler Durden's picture

Since there is no point anymore in doing any analysis or wasting time thinking, here is the copy and paste of the relevant section from a just released piece in Bloomberg. "Greek Default, Euro Exit Inevitable, Std Chartered CEO Tells Sky. Default, euro exit won’t “necessarily” occur in next 1 or 2 mos., but “quite likely at some stage,” Standard Chartered CEO Gerard Lyons tells Sky News. Greece “not going to pull down Europe” or cause world recession." Actually, the last bit may be a rumor, at least if one remembers what happened to global banking after Lehman was taken down in a "controlled" Chapter 7. Anyway, Johnny 5: take it away.

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AldoHux_IV's picture

The problem is that Greece is not the only problem country. There's just too much debt worldwide not enough gdp conjured up from the most maniacal keynesians or hope driven headline can service the existing world debt let alone begin to grow out of it.

nope-1004's picture

I agree.  If Greece defaulting has no effect and won't "bring down Europe", then why all the fuss to keep the POS afloat?  Why the buzzing rumor mill?

Europe is dead.  So is the US.  The "economy" is a function of peoples' productivity.  With labor force pariticpation at historic lows and debt at all time highs, combined with high unemployment, rumors and HFT bots are the only thing keeping the masses numb and out of the know.  The economy is lifeless because it's being manipulated from correcting.

Life support is not real life.



malikai's picture

If Greece defaulting has no effect and won't "bring down Europe", then why all the fuss to keep the POS afloat?  Why the buzzing rumor mill?

There are sheep out there that need fleecing.

SheepDog-One's picture

Right, if Greece defaulting is no big deal at all, then why are they so frantic romor mongering and pumping billions in to keep it afloat? 

X.inf.capt's picture

may i ask a question?

Who is going to make MONEY off all this DEFAULT?

Pladizow's picture

Ultimately, the buyers of Greek CDS - unless the sellers change the definition of default?!?

MachoMan's picture

Presuming the holders have the requisite political sway to get a bailout from the insolvent counterparty...

malikai's picture

I got loads of CDSs. I'd imagine most people here have plenty. But they are yellowish and silvery metal rounds and bars. It should help with those 'systemic' and 'counterparty' risks.

Wolferl's picture

And what about the counterparty risk to find somebody willing to pay you the price you want for a piece of scrap metal?

malikai's picture

If things get that bad, I probably won't make it anyway.

Stax Edwards's picture

This is obviously key.  Who is the counterparty to all that CDS?  AIG? lol

HoardeBilly's picture

Central Banksters have profited mightily for many years.  this is just the pulp of a country after fully squeezed.

e-recep's picture

On a global scale and in the long run, a few things will be corrected though. Chinese wages will equal Western wages. The West will never enjoy the relative living standards of the 60s and 70s. At least not until another manufacturing revolution pulls the jobs from the East back to the West.

max2205's picture

“China is a poor country with only $4,000 per capita income. To talk and think about China to rescue countries with $40,000 per capita incomes is ridiculous.”

-Yu Yongding, a Chinese top economist and former member of the central bank’s monetary policy committee

Youri Carma's picture

Solution is simple and inevitable:

0 – FORCE MAJEURE!Call Void All Bankster Bogus Derivative Debts! Because paying off these trough fraud induced debts have become a technical and practical impossibility.

THE REAL PROBLEMS & SOLUTIONS BY YOURI CARMA, 29 December 2008, (Blogs.Reuters – The Great Debate)

Mark my words, mark my words if this is not done, the country will go down!

(With help from; Alex Jones, Prof. Michel Chossudovsky, Prof. Michael Hudson, Prof. Joe Stiglitz, Dr. Webster Griffin Tarpley, Dr. Paul Craig Roberts, Dr. Marc Faber, Bob Chapman, Max Keiser, Peter Schiff , Gerald Celenete, Mike Maloney, Jim Willie, Jim Rickards and many others.)

Dick Darlington's picture

Germany testing the reactions to the inevitable break up of eurozone?

German finance minister sees no economic govt. in Europe ECONOMIC COMMENTARY

- No further Greek aid other than that agreed
- speculation on Euro finance minister is nonsense

09-13 15:36: German finance minister says Greece can solve own problems


unky's picture

As long as Germany is paying Greece bills, there will be no default. THis will change if German people riot against this bailout. Which will never happen, as most are too lazy to go to protest.

Long-John-Silver's picture

They’ve already defaulted. No one wants to admit it yet.

richard in norway's picture

they want to make sure that the coming downturn is blamed wholly on the greeks



banks are not the problem greeks are

citta vritti's picture

first statement wholly true, second one false in the first part. oh for a more refined junking system

MichaelG's picture

You can always comment if nuance is required ... oh, so you did.

Yancey Ward's picture

Wait, didn't the Martians offer to buy Greek debt?  Or was it that they were planning an invasion to help us out?  I can't keep all this straight anymore.

Zeff's picture

Guess who just flicked the first domino. I can feel Plato twitching in his grave.

Zeff's picture

double post *sorry

SheepDog-One's picture

OH 'at some stage' totaly bankrupt Greece will default....but not today my son....not today!

espirit's picture

I think Greece needs to buy (or swap) some of Italys bonds before they both default. Wouldn't that be a hoot to unwind?

sabra1's picture

if anything, it'll be done at night! surprise everyone!!!!!!!!!!!

rivers's picture

You are so right Sheepdog. Not today,not tomorrow and on infinitum. I've been reading this "stuff" for over a year and nothing changes. The powers-that-be can keep this dance going forever. The Fed can print and print and print and nothing will change except the value of the dollar.Eventually, the audience for this "coming desaster" will lose interest ---something like the second coming!   

SheepDog-One's picture

Sure seems that way some days. Its all just a gag? And they know they can do whatever they want because people will never revolt against their own Chinese water torture drip drip drip slow death by debt and eventually starvation? 

WonderDawg's picture

I don't think this will go on forever. There are real consequences for the actions of TPTB, and their desperation signals that they know they're running out of time.

SheepDog-One's picture

Seems that way too, but like the above said, watch it day after day after day....each day the wheels SHOULD fly off, but they dont. Yes I know theres far more to it than these stupid 'markets', I write about it all the time stocks are just a societal conditioning tool. When people hear 'The DOW finished up 70 points today' then they know 'all is well'.

But way more sinister things are being set up behind the scenes than simple stock manipulation, theyre working to keep the sheeple placated for a big event coming soon.

WonderDawg's picture

Agreed, mostly. My question, though, is have TPTB lost control? Have things accelerated beyond their ability to control the outcome? I think so, but really, all we can do is speculate and try to prepare for an outcome where we're pretty much in survival mode and/or resisting being herded into FEMA camps.

Interesting times, indeed.

english serf's picture

Sheepdog- one.EXACTLY. They know something we dont. And they are just trying to keep the show on the road till then

Strider52's picture

They're all going to delay, postpone, and kick the can until they all buy the farm.  On their deathbeds, they will all say "Hey, at least we didn't default."

lizzy36's picture

SO why exactly is Geithner going to the Euro Finance ministers in Poland on Thursday?

Certainly it can't be to dispense advice to Greece about tax collection.

treemagnet's picture

He's gonna help guide it in, um - I mean offer guidance.

Rainman's picture

Timmay's the set up man for the target mark to save the Euro........OBAMA !! Pony up or else it's goodbye in '12 !

johngaltfla's picture

Crap, I need a bigger mattress for all the Lira, Drachma, and other currencies I'm going to have to start hoarding from the old/new/old Euro failed experiment.

lookma's picture

Don't be stupid - fiat is for spending, gold is for saving.

Even if you don't understand the Euro, you can still understand the rational for building the Euro.

The dollar reserve system of debt is ending!    Debt is surely failing as the vehicle for saving.

Get yourself a new vehicle and hitch a ride with gold - its soon off to the moon!!


pods's picture

I almost wonder if they are trying to desensitize everyone for a greek default?  
It would make sense in that by the time they actually default, it will have already been priced in?

It might actually be welcomed.

Forgive me, I watched "Human Resources" last night and I still have that monkey screaming in the cage in my mind.


espirit's picture

Not sure the forex has it priced in. The unwind would be... traumatic, lol.

redagain's picture

"We hear that Mr Schauble is preparing Germany’s banks for the shock of Greek default. Do not believe a word of it. He cannot pull this off and he knows it. At some point he thought that time would allow Germany’s banks to work out ways of insulating themselves from a Hellenic shock. Instead, they seem more vulnerable today than ever. So, what on earth is going on? What is Mr Schauble really doing? What plans is he trying to hatch?"


"...the only logical conclusion that I can come to is that, behind all the talk of a German plan to contain a Greek default or to push Greece out of the euro, lies the groundwork for a pragmatic plan that sees Germany bailing itself out; a plan according to which Germany will round up countries it truly deems worthy of sharing its new currency with (the other three surplus countries of the existing eurozone plus perhaps Poland, the Czech Republic and even Estonia) and exiting in the most orderly manner possible; offering, for example, to the eurozone countries that will be left behind (fretting France in particular) a few gifts..."

ex-adviser of G-Pap 

Lord Welligton's picture

Interesting. Thanks for that.

redagain's picture (google translated ) (in German) 


the German reaction in the comments.

20 pages and go on

Jim in MN's picture

Interesting but unlikely.  The most practical variant would be the 'two-speed Eurozone' with the trappings of the EU/EMU preserved.  But what we're seeing is two fatal flaws:

1. Monetary union without fiscal union doesn't work.  This makes monetary union simply too close to core sovereignty to work in the end.

2. No currency zone games can stop greedy leveraged investment in the PIIGS or anywhere else.  That is Germany's fault and nothing in the Eurozone construct can really be blamed, nor can altering the monetary aspects solve that problem.

Not that Germany won't try something, but it won't work.  Maybe for kicking the most.

Wolferl's picture

Varoufakis is a moron with no clue at all. Germany and German banks are ready for a Greek default for almost a year now. The write down of those few billions in Greek bonds German banks are holding is not a big deal. But French and Italian banks will be hit hard. And this may cause the next deep recession worldwide because this countries may not be able to bail out their banks completely. And that´s something Germany wants to avoid as one of the leading exporters in the world.    

ambrosiac's picture


Varoufakis is a leftist Econ professor, no more, no less.  What next, will you be calling Krugman a moron?? (Imagine that!)


Nobody can be sure of being ready for a full-fledged Greek default.  After all is said and done, after writedowns and whatnot, there still isn't reasonable assurance a snowball won't run roughshod over the delicate acrobatics of an overleveraged Europe and even world.


Nor is default a viable solution for Greece.  It imports 3/4 of its food and all its fuel.  Devalue the drachma and win on exports?   Uh...  WHAT exports?


There will be NO default -- because there already is a controlled default.  Gradually, as measures take effect and less and less money goes down dark tubes, there will be more agreed haircuts until they hit 50% or so.


The government has been forced to take those measures -- cut its partisan foot off, if you recall my recent "Saw" comment.  It is being dragged to doing just that, fire civil servants (the heart of party membership), divest, open up closed-shop professions and trades.  Kicking and screaming, like a reluctant virgin (albeit with an Eisenhower-dollar-sized ass).


Id fight Gandhi's picture

Soft default, hard default, orderly default, organized default... How many more flavors are there?

SheepDog-One's picture

'Nothing to see here' style default, as the DOW tacks on +400 that day as whatever it is will be 'better than expected'.