IMF Crushes Greek Deal Hopes, Says "No Progress Made", Halts Talks After Major Differences Remain

And just like that we are back to the rumor drawing board.

  • IMF'S RICE SAYS NO PROGRESS MADE TOWARD DEAL WITH GREECE
  • IMF HAS MAJOR DIFFERENCES WITH GREECE IN KEY AREAS: SPOKESMAN
  • IMF'S TECHNICAL TEAM ON GREECE HAS LEFT BRUSSELS, RICE SAYS

The WSJ has more details:

The International Monetary Fund has halted bailout talks with Greece after a failure to make progress in negotiations, the IMF’s top spokesman said Thursday.

 

“There are major differences between us in most key areas,” said IMF spokesman Gerry Rice.

 

“There has been no progress in narrowing these differences recently. Thus, we are well away from an agreement,” he said.

 

Mr. Rice said the IMF team negotiating with Greece has been pulled out of Brussels, where talks had been occurring.

 

“The ball is very much in Greece’s court right now,” he said.

But "two Bloomberg sources", an organization which like Reuters, makes money from collecting commissions from trading and loves a surge in volatility, said yesterday a deal was assured. What gives? 

Perhaps the fact that just as we said, this is a tried and true pattern of drawing the sheep in just so the big boys can dump to novices, Chinese grandmothers and of course, Virtu's vacuum tubes.

Considering it almost 24 hours for the official denial of the latest report we can conclude that i) the "two sources" made a lot of money trading based on their own leak and ii) since it took so long to reject the rumor, there was a lot of selling.