Earlier today we were delighted [6]to predict precisely what the script of the European headline flow would be now that the only thing that matters is instilling the fear of Chairsatan in the Greek people, who are so confused that 75% of them wish to keep the Euro, but 80% wish for austerity to end - two mutually exclusive events. We outlined the daily event flow for the next month as follows:
- Europe releases definitive rumor that everyone is preparing for a Greek exit full of bombastic jargon and details of how Greece will be annihilated if it does exit the EMU;
- Immediate election polls are taken;
- If "anti-memorandum" Syriza support is not materially lower, rumor is promptly withdrawn for the day, only to be unleashed the next day with even more bombastic end of world adjectives describing the 9th circle of hell Greece will enter unless the Greek people vote "for" the pro-bailout parties, "for" the Euro, and "for" a perpetuation of the status quo;
- Rinse
- Repeat
We got the first confirmation of precisely this a few short hours later.
First, in response to the Grexit story Reuters reported [7]earlier, we promptly got the denial:
- GREEK FINANCE MINISTRY SAYS EUROZONE MEMBER STATES WERE NOT ASKED TO PREPARE FOR GREECE TO EXIT EUROZONE - BBG
And minutes later, the counter-denial:
- BELGIUM FINANCE MINISTER SAYS IT WOULD BE IRRESPONSIBLE TO SAY WE DO NOT HAVE A CONTINGENCY PLAN FOR GREEK EXIT - WIRES
Rinse.... Repeat....
Sadly, the take home here is that if we could figure this BS out after thinking about it for 2 seconds, so can everyone else.
The sad ending of the soap opera has now become all too transparent.