We Have A Deal!

Tyler Durden's picture

We just may have a deal:

  • EU official, who wished to remain anonymous, tells Bloomberg that euro-area leaders are set to approve accord for 50% writedown on Greek bonds

If true, this means that Portugal, Ireland, Spain and Italy will promptly commence sabotaging their economies (just like Greece) simply to get the same debt Blue Light special as Greece. It also means that, at least according to Barclays, we have a CDS credit event, although we are certain that Europe would never announce this deal unless ISDA (complete determinations committee list here) was onboard, and corrupt as always. In addition, Greece was unable to generate a 90% acceptance for a 21% haircut tender offer. And we are somehow supposed to believe they can do it with 50%? Lastly, as a reminder, on September 14, Moody's put SocGen, BNP and Credit Agricole on downgrade review. This will be the trigger

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
ForTheWorld's picture

Could this be linked to the ceasation of trading at the ASX? Surely they wouldn't pull the same tricks as the NYSE?

johngaltfla's picture

Uh, maybe not.

About all that CDS out there....

And doesn't this make the idea of PIIGS issued RMBS and CMBS like, worthless now?


This reeks of 2008 all over again; put a bandaid on a severed leg then tell the poor SOB to go run a marathon.

Mactheknife's picture

And the ES ramps 12 points..LMAO. Folks, this is just the end of the "beginning" of the end.

The Big Ching-aso's picture

So help me out here.

Private bondholders 'voluntarily' took a 50% or thereabouts haircut and they're ok with this? I gotta wonder just how 'voluntary' this agreement is.

And I guess the message to the rest of the PIIGS is that if 50% didn't cause an end of the world ruckus then hells bells lets haircut their private asses by 90%.

It's apparently not such a good time to be a bondholder. Hell the recent past wasn't so good either. Just ask GM's bag holders.

Where in the hell is bond money going to come from now?

l.hauri's picture

I have the same opinion, but I am sure that they will change something in the future.
timeline covers

Ahmeexnal's picture

Kinetic economic collapse action!

crazyjsmith's picture

So what happens when your Neighbor gets a loan modification on his house - cutting the principle by 50%, and you don't?

Let's ask Portugal, Ireland, Spain, Italy that same question.

Spastica Rex's picture

Yeah - there goes my wife's latest kitchen remodel and my new motorcycle. FUCK THAT!

Ahmeexnal's picture

First step in all hyperinflationary events: your money is suddenly worth 50% of what it was supposed to be worth.


Dr Zaius's picture

Wouldn't this be highly deflationary? 50% of the debt is just being written off and such deleveraging events are usually associated with deflation.

Unprepared's picture

That's when they start to print like mad

hungrydweller's picture

And yet ES is ++++++++++++

Short Time Bitchez!!!!!!!!

l.hauri's picture

It is a really nice approach. Maybe we should do it more often. hotels in harrow

tekhneek's picture

Yes but as most deflationists seem to ignore: You have to pay for that write-off somehow.

greensnacks's picture

US, Japan, Brazil, Australia, Europe all cutting rates at the same time? what could possible go wrong?

cdude's picture

Not your money but your investment that would suddenly be worth 50%...seems, if either, points more in a deflationary direction.

akak's picture

If I read even ONE more idiot bringing up the non-existent "threat of deflation", my head is going to explode --- hyperinflate, as it were.

When will you fuckers ever examine or understand monetary history, and realize that THERE IS NO FUCKING DEFLATION, NOR HAS THERE EVER BEEN, NOR WILL THERE EVER BE, DEFLATION UNDER A FIAT MONETARY REGIME?!

Libertarians for Prosperity's picture



You are a psychotic idiot.  

If you think deflation can't happen under a fiat money system, then what the fuck do you think happened in 2008/9?

Why do you think Bernanke is desperately trying to re-capitalize the banking system and inflate the economy?  Because of the threat of inflation?

It's difficult for me to fathom how someone could be so knee-buckling stupid, and, simultaneously, so brash about it.

That, coupled with your obnoxious, overly extreme "piss on their grave" animosity toward individuals who are supposedly "complicit" in the destruction of this country because they make bullish stock recommendations, and it quickly becomes obvious that you're just fucking out-of-this-cosmos psychotic.  







akak's picture

Thanks for displaying your complete ignorance of monetary matters, you clueless, disingenuous, malicious, mother fucking piece of shit asshat troll.

Bernanke is desperately (and ultimately, unsuccessfully) trying to save the bloated, TBTF banks because, well, he is a banker, and wii do anything, ANYTHING to save his elitist cronies in crime.  But that has nothing to do with any putative, chimerical, mythical "deflation" --- which I emphasize, again, has NEVER once been seen under a fiat monetary regime in all of monetary history.

No, we did NOT see nor experience deflation in 2008, you statist, Keynesian bastard.  Deflation is a decline in the total stock of money, NOT a temporary deleveraging event.  But thanks for discrediting yourself, for the 472nd time (under your latest troll handle, not your previous five or six sockpuppet aliases here).

Libertarians for Prosperity's picture



No, we did NOT see nor experience deflation in 2008....



akak's picture

Almost as hilarious as those utterly clueless, statist, Keynesian fucks like you and "Caveman" Krugman who continue to insist that up is down, black is white, debt is money, and the solution to overindebtedness is taking on yet more debt.


Now, after discrediting yourself yet again so thoroughly, why don't you go change your handle here and come back pretending to be somebody else, as has been your pattern for the last two years now.

Libertarians for Prosperity's picture



Discredit myself?  WHAT? !!


Even if we were to accept your one-dimensional definition for deflation, you're still wrong. 


Dude, you are dumb. And psychotic. 

*LOL* at YOU!


Edit in:  I just noticed you edited OUT your definition of deflation!  *LOL*

CLUELESS!!!! You're so passionate about your stupid, one-dimensional definition, yet you quickly edited it out because you realized how FUCKING RIDICULOUS YOU ARE!!



akak's picture

Oh my God.

You are truly the most embarrassingly stupid fucking troll I have ever encountered.

Obviously, you do not know how to read a graph.  If, however, you ever do learn to do so, you will see that while (the now officially unreported) M3 held steady or declined very slightly in 2008 and 2009, each of M1, M2 AND most importantly, the Monetary Base, all increased steeply and radically during that period (hint: you have to look at the shaded areas of the charts, NOT the lines, which represent the moving year-to-year % change in each monetary aggregate, NOT the stock of each.)

I expected you to discredit yourself, but damn, I never expected you to do so so completely!  And served up by you yourself on a silver (ahem) platter!

PS: I edited nothing out of my previous comment, you God-damned fucking liar.

PPS: With that amount of egg on your face, I won't be expecting any further replies from you in this thread, as at this point you could only dig the hole of your laughable monetary ignorance and non-crediblity that much deeper.  Ta ta.

Libertarians for Prosperity's picture



Dude... there's nothing subtle or slight about those charts.  

You really don't have any idea what you're talking about.  If a central bank wants to decrease the monetary base, all it needs to do is increase reserve requirements. 

Go midway down the page to "Reserve Requirements."


Your one-dimensional definition of deflation is ridiculous.  You can't read those charts, at all.  You're contradicting yourself from one post to the next, and you have no understanding of what the "monetary base" is, nor do you understand how it can fluctuate - up OR down.  

This was hilarious for about 5 minutes.  Now it's just pathetic. 


Hephasteus's picture

Psychotic is a relative phenomenon. Say if you are psychotic and suffered a loss of reality of what akak is refering to as a strong historical dataset involving massive relentless inflation interupted by about 2 weeks in the 30's when eggs dropped a few percent in their price. So you're right there is a psychosis going on here. It's just that you are the one involved in it.

But technically you both are wrong. In any money tightening situation even on relative basis which we currently are in. There is about at least a 20 percent drop in money supply to american households. In any situation like that you get simultaneous inflation and defaltion. The consumer gets it as inflation if they are only purchasing things that they require. The people yet unaffected by the tightening supply get it as deflation becaue they see their favorite luxury or non-essential goods dropping in price due to massive margin compression. The states get it as seeing massive tax revenue drops to their coffers because corrupt corporations continue collecting sales tax they just don't pay them to the state. Oh they pay but they lie about how much they collected and keep the exess taxes to battle the margin compression they are suffering from. I'm not saying wal-mart is doing this but if you checked them. You'd probably see that they are as they do not follow the inflation margin compression curves without them doing it. McDonalds is definitely doing it.

"If a central bank wants to decrease the monetary base, all it needs to do is increase reserve requirements."

You're living in history books. The most effective way to tighten monetary supply in ponzi bank fuck world is to stop ipo's. Record IPO's shattering 2007 records in 4th quarter 2010 resulted in massive inflation in 4th quarter 2010. That was to give the corporations free money so they could go on pretending they aren't getting margin compressed to death. The IPO's are faltering and there's been no significant ipo's for months. I think there have been 2 and people keep joking about the groupon ipo. So you see that's why people are nervous. Because the free money IPO ponzi tap has been turned off. And corporations are going from make shit up sales figures to make up a whole lot less shit sales figures. 3 years into this depression and the money tightening is making it's second visit to the chosen gangs of commerce.

There's not going to be much inflation ending out this year as long as the IPO ponzi orgy is shut down. But if it's shut down too long or too much then they will start kicking millions more out in the streets who will then look around and see "inflation" as they are no longer spending most of their money on useless crap.

I also just wanted to add the following tidbits. If the tightening to corporations continues the results based on their past behavior will be this. Massive firings. States suddenly bitching about tax revenue and having fucked up budgets because the corporations are stealing it. State defaults, Bankruptcies and lower gold prices. Because less people with less dow jones largesse will be out there fucking over the system that is designed to be thier fuck people over pathway by snatching up gold with the largesse.

haibop's picture

and the next ten years won't look that great... memory foam mattress

Comay Mierda's picture

sounds like a haircut with a chainsaw

TheFourthStooge-ing's picture

Expect a denial soon. I think the half-life of "deal reached" leaks/rumours is around ten hours.

The actual deal, to be announced on Friday after the markets close, will be an agreement to roll the calendar year back to 2010.


DormRoom's picture

another trial balloon to gauge the market?

haibop's picture

I really enjoy reading these interesting posts. walk in freezer

Fidel Sarcastro's picture

A  BONA-FIDE  D.E.F.A.U.L.T  and the f*cking market explodes...AGAIN!

i root for that fat jersey governor's picture

damn I closed my long and opened short today - TOO early! should stay long to eat those suckers lunch.

myne's picture


As bad as it sounds, the sooner the entire PIIGS group and any other insolvent entities fail, the sooner the fire burns out.

The phoenix cannot rise from the fire. It HAS to rise from the ashes.

It'll suck for a few years, but it will be over and done with.

JLee2027's picture

A quick collapse is preferable to a slow lingering death in my book.

max2205's picture

12/31/2011 = all time SPX highs. FUCK

zorba THE GREEK's picture

Max, you may get a spx high, but not adjusted for the newly devalued currency.

Melin's picture

Yes...a quick collapse would've been preferable.

Spastica Rex's picture

Phoenix is so 20th century.

kito's picture

especially with their water shortage, mega dust storms and high crime rates. you would be a fool to move there...

l.hauri's picture

this seems to be a good deal. Maybe we can cooperate.
yacht charter dubrovnik

Sequitur's picture

Kudos to the Tylers: you got this out fast.

caerus's picture

no shit...i'm on bullshit overload...cheers!

Milton Waddams's picture

Confirmed.  This 50% off deal on Greece bonds was today's Groupon.  The deal is on!