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Troika Says Greece Needs Another Debt Restructuring Round

Tyler Durden's picture


It has been a while since Greece made the front pages. That changes now:


And to think all those knife catchers said the Greek bonds were the slam dunk trade of the year. All of them are about to get taken to the cleaners. As are their newsletter sales.


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Tue, 07/24/2012 - 11:43 | 2645594 zero19451945
zero19451945's picture

Oh God no!!!!!!

First the IBEX, then the FTSE, now my Greek bonds are blowing up?????????

How could someone with "Trader" in his name mislead me so badly?

Tue, 07/24/2012 - 11:45 | 2645613 centerline
centerline's picture

Traitor.  Just too damn close IMO.

Tue, 07/24/2012 - 11:47 | 2645616 The Monkey
The Monkey's picture

Don't be such a negative nelly. RIMM is up 2%.

Tue, 07/24/2012 - 11:48 | 2645622 EscapeKey
EscapeKey's picture

... Italy @ 6.55. Just saying.

Tue, 07/24/2012 - 11:57 | 2645655 knukles
knukles's picture

Nothin' a nice home equity loan or reverse mortgage can't fix.

Tue, 07/24/2012 - 19:11 | 2647440 AldousHuxley
AldousHuxley's picture

French, German banks are fucked

 If they give greece bailout, then they are diluting their own Euro

 If they don't give greece bailout, then Euro crashes and also their banks with greek debt


starting to sound like North Korea asking for food aid every time they fire off some empty shell of a missile claiming to be nukes.

Good strategy against TBTF.....NLTL (Nothing Left To Lose)....


go greece, just ask for germans to pay for more retirements at 50. hopefully german workers get mad, and overthrow their bankers.

Tue, 07/24/2012 - 11:58 | 2645659 HoofHearted
HoofHearted's picture

Latest and Greatest to come from Goldman soon- oh, Muppets, go ahead and buy an equally weighted portfolio of Greek, Spanish, and Italian bonds. They're a great deal. And we just happen to have a few back here in stock for you to buy now.

Tue, 07/24/2012 - 12:16 | 2645771 Mark Carney
Mark Carney's picture

so Greece will have officialy defaulted twice in 6 months, yet noo credit event or cds triggered.




Everyone looked at my sideways when said they defaulted in march. ill just keep quiet this time and search for my downed canoe.

Tue, 07/24/2012 - 12:35 | 2645871 caconhma
caconhma's picture

What is the Would Zionist Banking Mafia's plan B?

Plan A is creating a chaos and impoverishing both EU and the USA.

May be the plan A is working and their goal is to start the WW3 but are they sure they got out alive out of it? Then, they could run to America and Canada but now there is nowhere to run or hide. I don’t think Chinese will accept them.

The neo-cons “New Century” project looks more and more like a nightmare.

Tue, 07/24/2012 - 19:28 | 2647483 AldousHuxley
AldousHuxley's picture

By the end of 2006, Project for New American Century was "reduced to a voice-mail box and a ghostly website", with "a single employee" "left to wrap things up"....


Iraq is done....Iran is a whole another level of ball game now with China and Russia looking at it as their last foothold in ME.

Tue, 07/24/2012 - 12:52 | 2645958 Nobody For President
Nobody For President's picture

And FB is up 6 cents...

Tue, 07/24/2012 - 19:35 | 2647497 AldousHuxley
AldousHuxley's picture

JOBS ACT for IPO corps:


  • Reduced Financial Statement and MD&A Disclosure
  • Exemption from Sarbanes Oxley Act
  • Delayed Application of New Accounting Standards
  • Exemption from New Audit Requirements
  • Exemption Executive Compensation Disclosures
  • Exemption from the Dodd-Frank Act requirements
  • Exemption from Say-on-Pay, Say-on-Frequency and Say-on-Parachute Requirements


Any guesses why VC are trying to IPO startups now?

Tue, 07/24/2012 - 11:48 | 2645619 ZerOhead
ZerOhead's picture


Tue, 07/24/2012 - 12:01 | 2645685 Dr. Engali
Dr. Engali's picture

So,What's your point?

Tue, 07/24/2012 - 12:05 | 2645703 knukles
knukles's picture

Question's spot on, brother.

Tue, 07/24/2012 - 12:09 | 2645730 Uncle Remus
Uncle Remus's picture


Tue, 07/24/2012 - 11:54 | 2645645 Haager
Haager's picture

It's long term. Like 2250ad +-150yr you'll get paid back a lot, promised.

Did noone mention to invest in european banks? 

Tue, 07/24/2012 - 11:59 | 2645667 MillionDollarBoner_
MillionDollarBoner_'s picture

Can I get payment in kind?

In retsina and zouvlaki?

Tue, 07/24/2012 - 12:03 | 2645688 SheepDog-One
SheepDog-One's picture

This is Robo-Cosell...professional after-the-fact stock and financial commentator.....YES I stepped outside my safety zone of rear-view trading only and made some tragic calls in the last few days, therefore I'll be taking a leave of abscence, good day.

Tue, 07/24/2012 - 12:11 | 2645743 Uncle Remus
Uncle Remus's picture

Float like a bubble,

Sting like a margin call.

Tue, 07/24/2012 - 11:43 | 2645595 Jason T
Jason T's picture

Default.. let the deflationary depression clear out of all the dead wood in this economic forest begin!!

Tue, 07/24/2012 - 12:11 | 2645738 EscapeKey
EscapeKey's picture

It's politically more palatable to print.

Tue, 07/24/2012 - 12:12 | 2645752 Uncle Remus
Uncle Remus's picture

Not when the ink smears...

Tue, 07/24/2012 - 13:09 | 2646041 mind_imminst
mind_imminst's picture

EXACTLY!! Ding! Ding! Ding! That is why the CBs will end up printing until they can't fit anymore zeroes on their balance sheets. The politicians and the voters will choose the easy way out (printing) because they are short-term thinkers and ignorant of fundamental economics.

Tue, 07/24/2012 - 13:55 | 2646223 Offthebeach
Offthebeach's picture

In the long run all printers are dead.

Printers of the world unite!

You don't like that print? I got others!

We got a central bank offer yous can't refuse.

Credit! Credit hee-are! Get your red hot fresh credits! Uncle Ben's credit. No filler! 100% Hopium and unicorn skittles!

Tue, 07/24/2012 - 12:29 | 2645837 eclectic syncretist
eclectic syncretist's picture

Ahhhh........dey gonna tell da ECB to keep printin' furever or take der football an' go home.  We gonna hafta find anudder game t' play ovuh here.   

Tue, 07/24/2012 - 11:43 | 2645596 rubearish10
rubearish10's picture

Never mind that, we're focused on earnings. Save it for another day.

Tue, 07/24/2012 - 11:44 | 2645597 disabledvet
disabledvet's picture

Once they go back to the drachma the NEW bonds should. The rest is nothing but Erie Canal Bonds...and I mean ALL euro bonds.

Tue, 07/24/2012 - 11:44 | 2645599 Cursive
Cursive's picture

How is it that more of these bond investors have not gone belly-up on doubling and dodecadoubling down on this junk?

Tue, 07/24/2012 - 12:00 | 2645678 MillionDollarBoner_
MillionDollarBoner_'s picture

How many more MFG/PFGs are there out there ?;o)

Tue, 07/24/2012 - 11:44 | 2645604 Meesohaawnee
Meesohaawnee's picture

no greece needs to be put out of its misery..

Tue, 07/24/2012 - 11:44 | 2645606 mrktwtch2
mrktwtch2's picture

greece.."you knew we wouldnt pay it back yet you continue t gve us free its your problem.."lol

Tue, 07/24/2012 - 11:58 | 2645663 knukles
knukles's picture




Beware of Greeks bearing amyl nitrite

Tue, 07/24/2012 - 12:02 | 2645693 MillionDollarBoner_
MillionDollarBoner_'s picture

...??? ??? ????... :O)

(...and its gone... :O)


Tue, 07/24/2012 - 11:45 | 2645608 centerline
centerline's picture

Need..... another..... fix....

Tue, 07/24/2012 - 11:45 | 2645610 Thamesford
Thamesford's picture

We have the Holy Launder Grenade.
Yes, of course! The Holy Launder Grenade of Brettontioch! 'Tis one of the sacred relics Brother Bernankeard carries with him! Brother Bernankeard! Bring up the Holy Launder Grenade!
MONKS: [chanting]
Pie Iesu domine, dona eis inflatiiem. Pie Iesu quantitea, dona eis easiiem. Pie Iesu domine, dona eis printiiem. Pie Iesu domine, dona eis lendiem.
How does it, um-- how does it work?
I know not, my liege.
Consult the Book of Easements!
Easements, chapter two, verses nine to twenty-one.
And Saint Keynes raised the launder grenade up on high, saying, 'O Lord, bless this Thy launder grenade that, with it, Thou mayest stimulate Thine economies with shiny bits in Thy mercy.' And the Lord did grin, and the people did feast upon the loans and debentures  and credit and food stamps and unfunded liabilities and flat screen TV's and sub-prime mortgages and large con--
Skip a bit, Brother.
And the Lord spake, saying, 'First shalt thou take out the Holy Printing Press. Then, shalt thou count to QE3. No more. No less. QE3 shalt be the number thou shalt count, and the number of the counting shall be QE3. QE4 shalt thou not count, nor either count thou QE2, excepting that thou then proceed to QE3. QE5 is right out. Once the number QE3, being the third number, be reached, then, twistest thou thy Holy Launder Grenade of Brettontioch towards thy faux bankers, who, being slovenly in My sight, shall relend it it.'
Right! QE1!... QE2!... QE5!
QE3, sir!
[angels sing]

Tue, 07/24/2012 - 11:51 | 2645629 Haager
Haager's picture

If I hear some people speaking over the situation in europe, like Schäuble or Rajoy, the black knight comes into mind.

Tue, 07/24/2012 - 17:39 | 2645679 Gadocat99
Gadocat99's picture

..For if you do doubt your courage, or your strength, go no further! For death awaits with sharp pointy teeth!

What, behind the Bernanke?

It is the Bernanke you fool! Look at the bones man!

Tue, 07/24/2012 - 12:35 | 2645875 viahj
viahj's picture

hmm, you know what strikes me about this post (besides the Python reference) is that the Holy Hand Grenade of Antioch was used to blow up a 'rabbit'.

we sort of heard from Simon Black yesterday that the Eastern Europeons may or may not start calling the USD a 'rabbit' in reference to a quickly mutliplying fiat currency.

now, today you have used the Bernank in a Python reference to blow up a rabbit with his printing grenade.

if this was intentional, I applaude you.

Tue, 07/24/2012 - 17:31 | 2647209 Thamesford
Thamesford's picture

I wish I could claim such connections, but I cannot. Sometimes, however, serendipidity happens.

Tue, 07/24/2012 - 11:45 | 2645611 ThunderingTurd
ThunderingTurd's picture

I didn't know anyone was stupid enough to hold debt of Greece.  Take it to zero and get it over with...

Tue, 07/24/2012 - 12:01 | 2645687 knukles
knukles's picture


Tue, 07/24/2012 - 14:03 | 2646261 Offthebeach
Offthebeach's picture

Greek banks are gobbling them up. The have the inside scoop and know something.
Now's a good time to buy.

Tue, 07/24/2012 - 11:48 | 2645620 rubearish10
rubearish10's picture

SPU 1330 is safe. BTFD.

Tue, 07/24/2012 - 12:23 | 2645806 rubearish10
rubearish10's picture


Tue, 07/24/2012 - 11:50 | 2645624 Conman
Conman's picture

I BTFD on greek bonds.. i do good?

Tue, 07/24/2012 - 11:51 | 2645628 Dr. Engali
Dr. Engali's picture

Trader : Okay...after this round of restructuring  Greek bonds will be a slam dunk buy of the year. I was just a little early the last three rounds.

Tue, 07/24/2012 - 11:54 | 2645642 crawldaddy
crawldaddy's picture

geeze so you mean austerity doesnt work.... you know what will fix that...more austerity......


You cant even make up the stupidity at work here.

Tue, 07/24/2012 - 11:58 | 2645665 Al Huxley
Al Huxley's picture

Nobody who loaned Greece (or Spain, or Italy, or Portugal, or France or....) wants to admit that the money's gone, spent, locked up in private assets and houses and vacation properties and too-expensive cars, and too many expensive holidays and too many expensive meals, and .... so they keep desperately looking for a way to make the borrowers pay it back.  But too fucking bad creditors, should have been more careful when you lent, caveat emptor and all.  Of course, then it comes back to who's on the hook for the money that's gone - borrowers don't have it, so its down to the lenders (banks) or their backstop (sovereigns - ie taxpayers).  So who will it be?  Hmmmm, I wonder who's going to foot the bill in the end?

Tue, 07/24/2012 - 11:56 | 2645648 GlomarHabu
GlomarHabu's picture

An addendum to my post on the thread, "Buying on the Dips" where I commented on why we read the articles, I would add this:

I mentioned the Libor as an example of bogus numbers.

Ask yourself this. Over the past decade plus just how many financial decisions were made using the Libor? And those decisions and the concommitant articles were predicated on totally rigged numbers.

Ask yourself this.  How many articles today are being written with their predicate based on yet to be unmasked totally false information?

Plenty. The point is that the prodigious output of this site and other sites is, and it is known, based on specious numbers and lies we are fed by Wall Street, the US Guv'ment, etc.

It should all simply be filed under "Entertainment"

Tue, 07/24/2012 - 11:57 | 2645649 Conman
Conman's picture

Time for another Greek FinMin to faint and resign?

Tue, 07/24/2012 - 12:08 | 2645721 Nachdenken
Nachdenken's picture

Why, have they a problem?

Tue, 07/24/2012 - 12:11 | 2645748 Conman
Conman's picture

Problem ? No. Catastrophe? Yes.

Tue, 07/24/2012 - 12:02 | 2645692 SDRII
SDRII's picture

In everyone's favorite Kingdom and their jr partner Qatar, things appear to be heating up...

A blast has hit the builing of Saudi in Riyadh, killing deputy of the newly-appointed intelligence chief Prince Bandar bin Sultan, according to reports. The explosion took place on Sunday when Bin Sultan’s deputy was entering the building, Yemen's al-Fajr Press quoted eyewitnesses as saying.


Saudi Arabia has called for an extraordinary summit of Muslim leaders to be held next month to address risks of 'sedition' threatening Muslim countries, state news agency SPA reported on Sunday. Saudi King Abdullah has called for 'an extraordinary Islamic solidarity meeting to ensure unity during this delicate time as the Muslim world faces dangers of fragmentation and sedition,' SPA quoted Foreign Minister Saud Al-Faisal as saying.  King Abdullah wishes to convene the summit in mid-August in a bid at 'unifying the ranks' of Muslims, the report said. There were no further details concerning the agenda of the meeting.   A Qatari official who has recently defected to Venezuela says his country is fully aware that armed groups cannot topple the Syrian government, but it is helping them because Israel has tasked Doha with provoking violence in pro-Palestine countries. The official says Israel has ordered Qatar to incite unrest in Syria, Lebanon and Jordan, which is a part of the US Middle East policy. The unnamed official, who left his country for opposing Doha’s domestic and foreign policies including those on Syria, also said that Qatar has a joint operations center with Israeli intelligence agents, monitoring events unfolding in Syria via Turkey and that Israel's intelligence service, Mossad, can be responsible for a bomb attack in the Syrian capital, which killed at least four military and security officials last week. He also said that Qatari authorities have arrested and jailed several security officials and activists for opposing Doha's anti-Syria stance. 

People and dissident groups issued their first nationwide call for holding peaceful protests in Qatar to demand ouster of the Al Thani ruling dynasty and dismantlement of the US bases in the Persian Gulf state. According to a report by al-Nakhel news agency, in the first massive popular move in such social networks as tweeter, the Qatari opposition forces called on the people to start action to demand political reforms and an overthrow of Emir Sheikh Hamad bin Khalifa Al Thani. They called for nationwide rallies on March 16, 2013 to voice their protest against the country's undesirable conditions. The opposition forces who have named their move as "Qatar March 16 Freedom Revolution" plan to demand expulsion of Qatar's First Lady Mozah bint NBasser al-Missned, who is among influential figures in the country, as well as dismantlement of the US bases in Qatar. Qatar is experiencing critical conditions after it was the scene of a coup attempt against Sheikh Hamad in April.

Tue, 07/24/2012 - 12:05 | 2645706 lizzy36
lizzy36's picture


But just 4 months ago the IMF said there would be growth in Greece next year. How could they have been so wrong. Perhaps they should read ZH more often:

Tue, 07/24/2012 - 12:17 | 2645776 Haager
Haager's picture

Exactly, growth is possibly going in next year, so there is still plenty of time to fall further.

Tue, 07/24/2012 - 12:17 | 2645779 EscapeKey
EscapeKey's picture

"When it gets serious, you have to lie" -Juncker 

Tue, 07/24/2012 - 12:09 | 2645729 monopoly
monopoly's picture

How is this possible. I am shocked, shocked I tell you. It Must be a mistake. Cannot be true. I just do not understand.

Tue, 07/24/2012 - 12:10 | 2645735 milanitaly
milanitaly's picture

Where is the news? If they asked to postpone their restructuring targets there was a reason that all the world already knew. It was not necessary to send there three economists.

Tue, 07/24/2012 - 12:11 | 2645741 monopoly
monopoly's picture

I just do not understand how anyone can put money in this market. I know I am getting older, lol, but it makes 0 sense.

PCX done as posted, Radio Shack next. What the fuck. Not worth it.

Tue, 07/24/2012 - 12:15 | 2645746 Bob
Bob's picture


According to Michael Hudson . . .

Today’s financial interests use the mathematical language of physical scientists to pretend that austerity will cure the government’s budget deficit and balance of payments. The reality is that a shrinking economy is less able to pay taxes and debts. Upon any truly empirical scientific examination, neoliberal logic is a public relations tactic in today’s financial war against society at large. The aim is to lock in power the way Rome did: by reducing as much of the population as possible to debt dependency.


In 1931, the pretense [of payment of WWI-related sovereign debts] finally was ended by a moratorium. This must be how today’s debt overhead also must end because debts that can’t be paid won’t be. Trying to prolong the day of reckoning will only impose an interregnum of austerity during which the financial sector will extract as much revenue as it can get away with, and foreclose on as much property as society will permit. Making itself a new ruling elite to lord it over what remains of the 21st century, Wall Street’s conquest promises to join Spain’s conquest of the New World and the Nordic conquests of Europe—and is in much the same spirit as Rome’s conquest of its Empire two thousand years ago. The results for society at large threaten to be equally devastating today.


Tue, 07/24/2012 - 12:21 | 2645797 TrustWho
TrustWho's picture

The political elite of Soviet Union raped and pillaged the country resources through cronyism and created the powerful nexeus between oligarchs and political ("elected") rulers.

The western political elite watched and became jeolous. Who will be the oligarchs of western societies? The stage has been set! 

Tue, 07/24/2012 - 12:34 | 2645832 Bob
Bob's picture

Now that our government has effectively been privatized by the financial industry, is there any doubt who the oligarchs already are?

WRT Russia, also from Hudson:

Also unlike military warfare, financial conquest does not kill people directly. It is much more genteel. Debt deflation causes poverty, discourages family formation, marriage and birth rates, and shortens lifespans. This prompted Vladimir Putin to note that neoliberal policies and privatization along kleptocratic lines had destroyed more of Russia’s population since 1990 than the nation had lost in World War II. Instead of the “Seven Boyers,” Russia had its “Seven Bankers” after Boris Yeltsin’s 1994 loans-for-shares privatization of the nation’s most valuable natural resources and monopolies.

Tue, 07/24/2012 - 12:14 | 2645759 edmondantes
edmondantes's picture

hmm perhaps...but it is in the price: the debt is at 11% of face value... which is remarkable for performing debt - at these prices even if there is another 50% haricut and it is redenominated at the old Drachma-Euro rate and then the currency devalues by 50% you would still get yr money back - and it is unlikely that they will do both - they will either redenominate or they will haircut. Actually redenominating the New Bonds would be quite difficult as the New Bonds are under English law.  For the New bonds it would actually be excellent were there to be a restructuring of official sector debt on the same terms as the PSI as this (and EUR membership) is what is strangling the Greek economy- I think they are unlikely to reopen the PSI restructuring as it hard to see how the terms could be improved and it would damage their own banks and pension funds who hold the debt. Grexit would also be very good for the New Bonds as they then would have an incentive to default completely on official sector debt (held by hated ECB and multinational institutuoions) but continue paying on the New bonds (held by their own banks and pension funds).  Also Grexit and default on official sector would mean growth would almost immediately re-emerge which in turn would boost sustainability.  The New Bonds at 11% are equivalent to the old debt at less than 5 cents on the euro - effectively there has been a 95% writedown - extend this writedown across Greece's entire det and the country becomes viable again.

Tue, 07/24/2012 - 13:47 | 2646194 Bam_Man
Bam_Man's picture

You make a persuasive argument.

However, holding a Greek bond to maturity and being able to sleep while doing so may not be possible for most of us. Too many bad things can happen over that long period of time. Like change of government and debt repudiation for example. Not to mention "Grexit", re-introduction of the Drachma, re-denomination of existing debts, followed by unlimited printing and hyperinflation. IMHO it is entirely possible that even buying at 11% of par could still result in a huge loss.

Tue, 07/24/2012 - 13:01 | 2646004 skistroni
skistroni's picture

The bond duration is our enslavement horizon.

The bond yields are the force of the whip lashes.

And the size of our ego is the size of the master to whom we are enslaved.

Tue, 07/24/2012 - 13:02 | 2646012 Nobody For President
Nobody For President's picture

Drachmas, BitChez!

Tue, 07/24/2012 - 15:02 | 2646495 loveyajimbo
loveyajimbo's picture

Greek comedy... they say, keep pouring Euros into our wrecked banks,, sure that'll work, trust us!!  Any fools that fall for this deserve to take it up the poop schute, Greek style.

Tue, 07/24/2012 - 16:22 | 2646849 zippy_uk
zippy_uk's picture

So when Greece gets kicked out in September, does that "+1" (base point) the rest of the EU bond 10Y ?

Wed, 07/25/2012 - 04:09 | 2648237 allocater
allocater's picture

Greek UK-law bonds still pay 100%.

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