Jul 04

Greek dominos

The Greek Bluff In All Its Glory: Presenting The Grexit “Falling Dominoes” (ZeroHedge, July 4, 2015):

Earlier today, Yanis Varoufakis reiterated his core thesis driving the entire Greek approach from day 1 of its negotiations with the Eurogroup: “Europe [stands] to lose as much as Athens if the country is forced from the euro after a referendum on Sunday on bailout terms.”

This is merely a recap of what we said 4 years ago when in July of 2011 we explained “How Euro Bailout #2 Could Cost Up To 56% Of German GDP“, recall: Continue reading »

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Jul 04

Could deposits below €100k be protected as it happened in Cyprus? The answer depends on the total amount of deposits above €100k. If there are enough of these large deposits above €100k, then most likely any required deposit haircut will be inflicted on these depositors only. There are no recent data on how big this universe of large deposits is. The most recent data from the European Commission suggest that at the end of 2012, covered (i.e. those below €100k) represented 75% of eligible Greek deposits. We suspect this number is now significantly higher leaving little room for depositors with less than €100k to be spared.

You’ve been warned, Greece!

Flashback:

Here is what happened to Mexico:

Hedge Fund Manager Kyle Bass Explains The New World Order (Panel Presentation):

On Greece:

For those who think a 50% write-down on debt will fix Greece, you have lost your mind. It is only a full wipe-out of the non-TROIKA-owned debt that is the only mathematical way for Greece to have any chance.

Don’t believe these governments when they tell you everything is going to fine. The day before Mexico devalued by 60% they denied that they would ever devalue. They can and will never tell you the truth. Find your own numbers.

Here is what happened to Belarus:

Belarus Devalues Its Currency By 56% Overnight, Against Every Currency Out There:

Luckily for those who held their “money” in the form of gold and silver, they just got an instantaneous 56% value preservation and a relative boost in their purchasing power with just one central bank announcement.


Will Greek Depositors Under €100,000 Be Spared In Case Of A “Bail-In”  (ZeroHedge, July 4, 2015):

One week ago, we first explained that as the Cyprus bail-in “blueprint” scenario unfolds, the one final, and most important, remaining variable in the ongoing Greek drama, soon to devolve to tragedy, is how big the ECB’s ELA haircuts would be in the case of a No vote, which would be the first catalyst of a depositor haircut.

ELA Haircut vs Deposit Haircut

Then, overnight, in a report since denied by both the Greek finance ministry and by the European Banking Authority Plan, the pro-Europe FT did yet another hit piece on Greece desperate to push those Greek voters on the fence ahead of tomorrow’s referendum to vote “Yes” (just think of the lost advertising revenue if say Deutsche Bank were to go under). Continue reading »

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Jul 03

“Greek banks are preparing contingency plans for a possible “bail-in” of depositors amid fears. The plans, which call for a “haircut” of at least 30 per cent on deposits above €8,000, sketch out an increasingly likely scenario for at least one bank, the sources said.”


Bank-robbery

Greek Banks Considering 30% Haircut On Deposits Over €8,000: FT (ZeroHedge, July 3, 2015):

Last week in “For Greeks, The Nightmare Is Just Beginning: Here Come The Depositor Haircuts,” we warned that a Cyprus-style bail-in of Greek depositors may be imminent given the acute cash crunch that has brought the Greek banking sector to its knees and forced the Greek government to implement capital controls in a futile attempt to stem the flow. Continue reading »

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Jul 02

Euro-QE

Goldman “Conspiracy Theory” Validated As ECB Expands QE Program (ZeroHedge, July 2, 2015):

The ECB has expanded the list of SSA securities eligible for purchase under PSPP. The updated list includes:  Continue reading »

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Jul 02

With Sweden’s QE Officially Broken, The Riksbank Doubles Down: Lowers Rates Even More Negative; Boosts QE (ZeroHedge, July 2, 2015):

Overnight the Riksbank confirmed that it neither learns from its own mistakes, nor reads BIS reports when at 9:30 CET, it shocked central bank watcher all of whom were expecting no rate change from the bank, and announced it is not only engaging in yet another rate cut, taking the key rate even further into record NIRP territory, from -0.25% to -0.35% but adding insult to broken QE injury, it would expand its QE by a further SEK 45 billion starting in September. The reason? Sweden is realizing it is losing the currency war (to a great extent due to its failed QE which is pushing bond yields higher and with it, its currency) and it needs to soak up even more collateral… which can barely be found.

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Jul 01

NikosP
Nikos Polonos, 55

Desperate Greeks Resort To Scavenging Through Garbage To Find Food (ZeroHedge, July 1, 2015):

Earlier today we documented the “heartbreaking” plight of Greece’s retirees who have been reduced to lining up in front of Greek banks hoping for a chance to collect a portion of their pensions. Some went away empty handed (there were reports that only those whose last names began with “A” through “K” were paid on Wednesday) and those who did manage to leave with cash were only allowed to access a third of their usual payouts.

This comes as Greeks may (and we emphasize “may”, because nothing is certain and the Greek government has bent over backwards to claim that deposits are “safe”) face a Cyprus-like depositor bail-in in the weeks ahead.  Continue reading »

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Jul 01

“Heartbreaking” Scene Unfolds At Greek Banks As Pensioners Clamor For Cash (ZeroHedge, July 1, 2015):

1,000 Greek bank branches chanced a stampede in order to open their doors to the country’s retirees on Wednesday.

The scene was somewhat chaotic as pensioners formed long lines and the country’s elderly attempted to squeeze through the doors in order to access pension payments.

As Bloomberg reports, payouts were rationed and disbursals were limited according to last name. Here’s moreContinue reading »

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Jul 01

For Greeks The Nightmare Is Just Beginning: Here Come The Depositor Haircuts (ZeroHedge, June 30, 2015):

With capital controls already imposed on Greece, some have wondered if this is as bad as it gets. Unfortunately, as the Cyprus “template” has already shown us, for Greece the nightmare on Eurozone street is just beginning.

As a reminder, over the past few months there have been recurring rumors that as part of its strong-arming tactics the ECB may eventually move to raise the haircuts the Bank of Greece is required to apply to assets pledged by Greek banks as collateral for ELA. The idea is to ensure the haircuts are representative of both the deteriorating condition of Greece’s banking sector and the decreased likelihood that Athens will reach a deal with its creditors.

Flashback to April when, on the heels of a decree by the Greek government that mandated the sweep of “excess” cash balances from local governments to the Bank of Greece’s coffers, Bloomberg reported that the ECB was considering three options for haircuts on ELA collateral posted by Greek banks. “Haircuts could be returned to the level of late last year, before the ECB eased its Greek collateral requirements; set at 75 percent; or set at 90 percent,” Bloomberg wrote, adding that “the latter two options could be applied if Greece is in an ‘orderly default’ under a formal ECB program or a ‘disorderly default.’”  Continue reading »

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Jul 01

BRICS-2

China ratifies the creation of BRICS bank (RT, July 1, 2015):

The Chinese Parliament has ratified the creation of the BRICS Development Bank. The New Development Bank was conceived as an alternative to Western financial institutions such as the World Bank.

The new bank will provide money for infrastructure and development projects in BRICS countries, that is Brazil, Russia, India, China and South Africa. Each nation will have an equal say in the bank’s management, regardless of GDP size.

Each BRICS member is expected to contribute an equal share in establishing a startup capital of $50 billion, with a goal of reaching $100 billion in capitalization. The BRICS bank will be headquartered in Shanghai, with India presiding as president during the first year, and Russia serving as the chairman of the representatives. Continue reading »

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Jul 01

All of this is NOT just caused by greed, ignorance and stupidity.

This has all been planned by …

Rothschild

The History of the House of Rothschild

And the Obama, Merkel, Cameron and Hollande kangaroos are just doing what they are told to do by TPTB.



19.06.2015

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Jun 30

revolving-door


 

“Retired” Dallas Fed Chief Joins Barclays As “Senior Advisor” (ZeroHedge, June 29, 2015):

Spin revolving door, spin.

Recently “retired” Dallas Fed chief Richard Fisher — who really, really believed that talk of falling oil prices negatively affecting the Texas economy amounted to “bull droppings” until a JP Morgan analyst reminded him that the “only thing dropping in the Texas economy [was] jobs” — is following proudly in the footsteps of Ben Bernanke, Jeremy Stein, and Janet Yellen (if you count unofficial, off-the-record ‘consultations’) by becoming the latest Fed policymaker to ink a lucrative deal ‘advising’ the private sector.

As WSJ reports, Fisher will become a “senior advisor” to Barclays starting on July 1: Continue reading »

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Jun 30

Kaupþing executives jailed

Kaupþing executives jailed (Iceland Monitor, June 26, 2015):

Six defendants in the Kaupþing market manipulation case, the biggest case of this type in Iceland’s history, have been handed prison sentences ranging from one year to four years and six months.

By fully financing share purchases with no other surety than the shares themselves, the bank was accused of giving a false and misleading impression of demand for Kaupþingi shares by means of deception and pretence.

Former Director of Kaupþing, Ingólfur Helgason, is to be jailed for four years and six months.

The other sentences are as follows:

  • Bjarki Diego, former Credit Manager: two years and six months
  • Ein­ar Pálmi Sig­munds­son, former Director of Proprietary Trading: two years (suspended)
  • Birn­ir Sær Björns­son and Pét­ur Krist­inn Guðmars­son, proprietary trading executives: eighteen months (suspended)
  • Sig­urður Ein­ars­son, former Kaupþing board chairman: one year

Hreiðar Már Sig­urðsson, former Director of the bank, received no further penalty, having previously been sentenced in the ‘Al-Thani affair’.

The two remaining defendants, Björk Þór­ar­ins­dótt­ir and Magnús­ Guðmunds­son­, were acquitted of all or most charges.

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Jun 29

H/t reader squodgy:

“The BANKSTERS’ BANKSTERS admit they’ve *uc#ed up” and used all their ammunition to cover up decades of incompetence and this next crash will be a Tsunami.”


bis-bank-for-international-settlements-basel-switzerland
Just another Rothschild controlled ‘bee-hive’.

Central Bank of Central Banks Says “The World is Unable to Fight Next Global Crash” (SHFTplan, June 29, 2015):

According to the Bank of International Settlements (BIS), the shadowy “central bank of central banks,” the world as it stands is incapable of combating another global financial crash – a crash that there is every reason to think is coming.

That’s because the economy remains in the hands of the Federal Reserve and other central banks. The financial wizards in THIS VIDEO went so far to say that “we are all slaves to the central banks.” It wasn’t exactly hyperbole. Continue reading »

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Jun 29


May 19, 2015

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Jun 29

European banks are suffering the exact ‘contagion’ that we were told numerous times would be contained ... led by limit down moves in Italy.


“Uncontained” – Greek Stocks Crash 17% As European Banks Plunge Most In 3 Years (ZeroHedge, June 29, 2015):

Despite the Greek stock market being closed there is an option for hedging the exposure that all the smart money has been building to Greece in the past few days – GREK – the US-trade Greek ETF. In the pre-open, GREK is trading down 17% but the problems lie ahead as more and more realize how illiquid it is and redemptions are forced to be made from ‘cash’ – since there is no way to offload the underlying Greek stocks, unless OTC trades can be arranged with other entities – which could thus expose the entire false-liquidity-facade of the ETF industry. Continue reading »

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Jun 29

Greek Contagion Spreads As Several Italian Bank Stocks Failed To Open (ZeroHedge, June 29, 2015):

While things have normalized since the open thanks entirely to the SNB’s aggressive EUR-buying, CHF-selling intervention (good to see that central banks have read the BIS’ report and have learned from their prior intervention mistakes), earlier this morning we got a snapshot of what happens if and when the SNB, and then the ECB itself, finally lose control when as a result of the Greek crisis the contagion promptly spread a few hundred kilometers west to Italy where as the WSJ reported, “several Italian banks failed to start trading on Monday as fears over a Greek debt default induced many investors to shed peripheral stocks, including Italian, with banks suffering the most.

As the paper reported sales orders on Italian stocks, in particular financial stocks, piled up before the market opening. At the start, the sales orders were so numerous that the system couldn’t manage to process them, something that often happens when specific news causes a sell-off on a stock. Continue reading »

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Jun 29

Chinese Stocks Crash Most In 19 Years, Re-Open Limit Down (Despite PBOC Hail Mary) (ZeroHedge, June 28, 2015):

Carnage…

  • *CHINA STOCK PANIC SELLING TO CONTINUE, CENTRAL CHINA ZHANG SAYS

This leave China’s CSI-300 broad stock index futures up just 7% year-to-date…

  • *CHINA CSI 500 STOCK-INDEX FUTURES FALL BY MAXIMUM 10% LIMIT
  • *CHINA CSI 500 STOCK-INDEX FUTURES FALL BY LIMIT FOR 2ND DAY

20150628_china7

  • *HKEX DROPS AS MUCH AS 7.3%, MOST SINCE SEPT. 2011
  • *SHANGHAI COMPOSITE INDEX EXTENDS DROP TO 7.5%
  • *SHANGHAI COMPOSITE HEADS FOR BIGGEST 3-DAY DROP SINCE 1996 Continue reading »

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Jun 28

Ignoring Tsipras Plea For Calm, Greeks Storm ATMs, Stores, Gas Stations (ZeroHedge, June 28, 2015): 

Just a few hours ago Greek PM Tsipras addressed his nation imploring then to “remain calm” and reassuring them that their “deposits were safe.” It appears the Greeks did not believe him. Many were wondering where the Greek bank lines were for the past several months. Turns out the local depositors were merely waiting until just after the last minute to withdraw their funds… horde gas… and stack food. Greece, it appears is Venezuela – the new socialist paradise.

Tsipras implored: “Keep Calm….”

They did not listen… Continue reading »

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Jun 28

Greece

Greek Capital Controls Begin: Greek Banks, Stock Market Will Not Open On Monday (ZeroHedge, June 28, 2015): 

Update 2: Greece’s Skai reports that if/when banks reopen (supposedly on Tuesday), a 60€ withdrawal limit will be imposed.

Update: In a televised address to the nation, Greek PM Alexis Tsipras assured Greeks that their deposits are safe despite an upcoming bank holiday and despite the fact that Greek stocks will not open for trading on Monday. Tsipras also said Athens has re-applied for a bailout extension and urged Greeks to “remain calm” in the face of what is sure to be a turbulent week.

  • GREEK PRIME MINISTER SAYS GREEK PEOPLE SHOULD REMAIN CALM
  • GREEK PM: BANK OF GREECE PROPOSED BANK TRANSACTION RESTRICTIONS
  • GREEK PRIME SAID GREECE RE-APPLIED FOR BAILOUT EXTENSION
  • GREEK PRIME MINISTER SAYS DEPOSITS ARE COMPLETELY SAFE

Earlier: Continue reading »

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Jun 28

A little under 24 hours before Europe opens for trading, and just under 12 hours before the open of equity futures, and things are not looking good.


Draghi Freezes Greek ELA, Varoufakis Tells BBC “Looking At Imposing Capital Controls, Closing Banks” (ZeroHedge, June 28, 2015)

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