Feb 26

Flashback:

- Max Keiser on Greece: ‘The IMF is a Financial Mafia’:

“The only solution for Greece is to arrest the Goldman Sachs bankers immediately and all those involved in the fabrication of Greek economic data in 2000, when you became a member of the eurozone. The next step is to nationalize all banks like Sweden did in 1993. The International Monetary Fund is that last thing you need. You will lose your sovereignty. It exercises terrorism. You will be raped in such a way, that it will be the worst pain you have ever felt.

If someone burns down your house in order to sell you charcoal, would you consider this logical? That is exactly what Goldman Sachs did to the Greek economy. They burned you down like arsonists and then they tell you not to worry they’ll give you charcoal. It’s outrageous. The IMF has said that it can provide Greece with help. The Wall Street investment hedge funds are attacking Greece’s bond market so that the Greek economy collapses. And they’re doing this for a simple reason; to force the Greek people to ask for help from the IMF. The IMF will say, we came because you asked for our help. Wall Street bankers work very closely with the IMF. It’s a financial mafia and the hedge funds are the assassins. Research conducted on Goldman Sachs in the USA and in Europe show how big a mafia it is. They are involved in illegal activity throughout the world.”


THE IMF WAS HERE

- How Far Is It From Kiev To Athens? (The Automatic Earth, Feb 25, 2015):

Riddle me this, Batman. I don’t think I get it, and I definitely don’t get why nobody is asking any questions. The IMF and EU make a lot of noise – through the Eurogroup – about all the conditions Greece has to address to get even a mild extension of support, while the same IMF and EU keep on handing out cash to Ukraine without as much as a whisper – at least publicly.

The Kiev government, which has been ceaselessly and ruthlessly attacking its own people, is now portrayed as needing – monetary and military – western help in order to be able to ‘defend’ itself. From the people it’s been attacking, presumably. And hardly a soul in the west asks what that is all about. Continue reading »

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Feb 25

- Treasury Collateral Shortage Soars: 2 Year Trades -2.8% In Repo (ZeroHedge, Feb 24, 2015)

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Feb 24

- TRoiKa SToCKHoLM SYNDRoMe…:

TRoiKa SToCKHoLM SYNDRoMe...


yanis schauble shaking hands

Troika “Happy” With Revised List Of Greek Reform Promises: Full Varoufakis Letter (ZeroHedge, Feb 24, 2015):

Update:

  • EU COMMISSION SAYS GREEK LIST `SUFFICIENTLY COMPREHENSIVE’
  • COMMISSION: GREEK LIST STARTING POINT FOR REVIEW CONCLUSION

So one can say that can has been kicked for another four months. Continue reading »

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Feb 24

Well, it’s Not the biggest problem.


- This Is The Biggest Problem Facing The World Today: 9 Countries Have Debt-To-GDP Over 300% (ZeroHedge, Feb 23, 2015):

If anyone has stopped to ask just why global central banks are in such a rush to create inflation (but only controlled inflation, not runaway hyperinflation… of course when they fail with the “controlled” part the money paradrop is only a matter of time) over the past 5 years, and have printed over $12 trillion in credit-money since Lehman, the bulk of which has ended up in the stock market, and which for the first time ever are about to monetize all global sovereign debt issuance in 2015, the answer is simple, and can be seen on the chart below.

It also shows the biggest problem facing the world today, namely that at least 9 countries have debt/GDP above 300%, and that a whopping 39% countries have debt-to-GDP of over 100%!

Global debt to gdp Continue reading »

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Feb 21

euro in smoke

- Beppe Grillo: “The Eurozone Chess Game Enters Its Final Stage: Germany Wins In Three Moves” (ZeroHedge, Feb 20, 2015):

With everyone’s attention focused these days on Greece’s Tsipras (and Varoufakis), and also casting concerned glances at Spain’s Pablo Iglesias, head of the poll-leading Podemos party which may well be the next Syriza, many have forgotten that Italy has its own “anti-austerity” voice, that of Beppe Grillo, a voice which had been relatively quiet in the recent past. However, judging by his latest blog post, he too will want to be heard in the seaschange in Europe in the aftermath of the Syriza surge and the resultant chaos that has shaken the Eurozone to its core.

From Beppe Grillo’s blog

The Euro’s up in smoke

The Eurozone chess game has entered its third and final stage. Germany wins in three moves – Euro, deflation and purchase of public debt by the ECB (QE) – and in the last few years it has found a way to maximise its profits and reduce to zero its risks as Europe’s creditor.

Continue reading »

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Feb 20

Russian president Vladimir Putin

- Moody’s “Junks” Russia, Expects Deep Recession In 2015 (ZeroHedge, Feb 20, 2015):

Having put Russia on review in mid-January, Moody’s has decided (somewhat unsurprisingly) to downgrade Russia’s sovereign debt rating to Ba1 (from Baa3) with continuing negative outlook. The reasons:

  • *MOODY’S SAYS RUSSIA EXPECTED TO HAVE DEEP RECESSION IN ’15, CONTINUED CONTRACTION IN ’16
  • *MOODY’S SEE RUSSIA DEBT METRICS LIKELY DETERIORATING COMING YRS

We assume the low external debt, considerable reserves, lack of exposure to US Treasuries, and major gold backing were not considered useful? Moody’s concludes the full statement (below) by noting that they are unlikely to raise Russian sovereign debt rating in the near-term.

*  *  *

Kind of ironic then that Russia is the best performing stock market in the world this year!!

Russia-Stock-Market-2015

*  *  *

Full Moody’s Statement: Continue reading »

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Feb 19

Putin chess

- Russia Dumps Most US Paper Ever As China Reduces Treasurys Holdings To January 2013 Levels (ZeroHedge, Feb 18, 2015):

Back in December, Socgen spread a rumor that Russia has begun selling its gold. Subsequent IMF data showed that not only was this not correct, Russia in fact added to its gold holdings. But there was one thing it was selling: some $22 billion in US Treasurys, a record 20% of its total holdings, bringing its US paper inventory to just $86 billion in December – the lowest since June 2008.

Russian Holdings Of US Treasuries Continue reading »

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Feb 15

- The Only Question About The So-Called “Recovery” (ZeroHedge, Feb 15, 2015):

We were almost eager to swallow the blue pill and admit that the “recovery” is an actual recovery this time (non-GAAP that is, one where all the economic data is first excluded)… and then we happened to glance at this chart, courtesy of Citigroup’s Matt King.

central bank interventions

Ignoring for a second the direct implication of what the chart highlights, namely that due to central bank intervention there is no more net supply of debt left in the world, now that for the first time ever, central banks are set to monetize all global government debt, something we showed previously… Continue reading »

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Feb 13


Feb 7, 2015

Description:

In this Keiser Report, Max Keiser and Stacy Herbert warn Greece to beware bureaucrats and bankers bearing bailouts. In the second half, Max continues with the second part of his interview with Kerry-Anne Mendoza about her new best selling book, “Austerity: The demolition of the welfare state and the rise of the zombie economy.”

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Feb 10

Yanis Varoufakis Sums Up Europe In One Sentence

Varoufakis Blasts ECB “Has Lost Control Of Monetary Policy” As Germany Tells Greece: “There Is No Way Out” (ZeroHedge, Feb 9, 2015):

“There is no way out” for Greece from its treaty obligations warns German lawmaker Michael Fuchs (Angela Merkel’s deputy caucus chairman) telling Bloomberg TV that conditions set for Greece by The Troika (EU, ECB, IMF) for bailout funds “have to be fulfilled…. That’s it, very simple.” The Greeks remain adamant that they will not ask for an extension to the bailout mechanism with both Tsipras and Varoufakis confirming that a bridge agreement is required and the latter adding “the ECB has lost control of monetary policy,” demanding the Troika structure come to an end. Then German Finance Minister Wolfgang Schaeuble exclaimed at the G-20 meeting that “Greece either has to find a way to get bridge financing, or, if they want to do it with us, they need a program,” seeming to push the door open to possible Russian financial aid for Greece as Europe’s pivot to Putin appears to be rising. Continue reading »

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Feb 10

Greek Bank Bonds & Stocks Crumble To Record Lows (ZeroHedge, Feb 9, 2015):

Just 3 short months ago, Greek bank bonds were trading near par and every over-leveraged, over-confident, over-full-of-propaganda hedge fund was buying them “for the yield” – well, S&P had upgraded Greece and implied ‘all-clear’. Today, Greek bank bonds are trading at 60% of face-value, having dead-cat-bounced last week before re-collapsing today. Greek bank stocks are also careening lower with most at record lows (below the lows reached during the peak of the crisis). The reason to focus on these instruments is that, while somewhat illiquid, they are the most sensitive to the day-to-day headlines and overall sentiment on Greece (and Grexit) as a pure reflection (redenomination risk aside) of trouble ahead

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Feb 10

- Greek Contagion? Spanish/Italian Bond Risk Surge Most In 4 Months (ZeroHedge, Feb 9, 2015):

With Spanish and Italian leaders desperately running around to any and every media outlet to proclaim themselves economically fit and deny deny deny what Greek FinMin Varoufakis said yesterday, it appears the market has a different perspective. Portuguese bond spreads are 16bps wider and Spanish and Italian bond spreads are 12bps wider – their worst day in almost 4 months – as it appears Grexit fears are starting to creep into the rest of the periphery.

 

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Feb 09

Government Debt Net Issuance 2015

- Stunning Chart Of The Day: For The First Time Ever, Central Banks Will Monetize More Than 100% Of Global Sovereign Debt (ZeroHedge, Feb 9, 2015):

Over the past two years we explained how in a time of ubiquitous central bank debt monetization, the amount of global sovereign bonds available for purchase – when taking into account CB purchases – has been declining at an ever faster pace, leading to a collapse in liquidity (something the TBAC warned about in the summer of 2013, leading to the Fed’s taper and subsequent temporary halt of QE3), and – naturally – to soaring bond prices (and plunging yields). The latter has reached epic proportions recently, and resulted in $3.6 trillion in global government debt, 16% of total, that is now trading at negative yields.

But not even we had any idea just how bad it really would get. Continue reading »

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Feb 09

FYI.


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Feb 08

europe-the-final-countdown

- Greece Gambles On “Catastrophic Armageddon” For Europe, Warns It “Only Has Weeks Of Cash Left” (ZeroHedge, Feb 7, 2015):

One of the bigger problems facing the new, upstart Greek government, which has set before itself the lofty goal of overturning 6 years of oppressive European policies and countless generations of Greek cronyism, corruption and tax-evasion is not so much the concern about deposit outflows and bank runs – even though it most certainly will be in the next few days unless the Tsipras government finds some resolution to the dramatic standoff with Merkel and the ECB – but something far more trivial: running out of money.

Recall that two weeks into the Greek elections, Greece was rocked by a dire, if entirely underappreciated development, when its already “tax-paying challenged” population decided to completely hold off paying any taxes in advance hopes that the Tsipras government will “overturn” austerity. We wrote: Continue reading »

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Feb 06

europe-the-final-countdown

- Eurogroup Gives Greece 10 Day Ultimatum: Apply For Bailout Or Grexit (ZeroHedge, Feb 6, 2015):

Update: And now this: Moody’s places Greece’s Caa1 government bond rating on review for downgrade

The key driver for the review for downgrade is the high level of uncertainty over the outcome of the negotiations between Greece and its official creditors over the terms of Greece’s support programmer. The outcome could potentially have negative implications for Greece’s ability to meet its funding and liquidity needs and for the probability of default on marketable securities. Moody’s government bond rating applies to marketable securities only.

Moody’s would consider downgrading Greece’s Caa1 government bond ratings were it to conclude, as a result of the review, that (1) an agreement with official creditors is not likely to be reached in time to enable the government to repay its creditors who hold debt on commercial terms; and (2) that the likelihood of a significant deceleration or even reversal in the implementation of the adjustment programmer would further hinder Greece’s growth prospects.

Surely Greece must be delighted to be part of the European “Union” at this point. Continue reading »

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Feb 06

S&P Downgrades Greece, Suggests Worst Case Scenario With Bank Runs And “Capital Controls”: Full Report (ZeroHedge, Feb 6, 2015):

And the hits keep coming. On the heels of a demand for repayment of ECB’s profits from GGB bond gains and to extend the T-Bill limit to give the nation time to negotiate with EU leaders (i.e. a Bridge Loan) which Jeroen Dijsselbloem already dismissed earlier in the day, S&P just piled on…

  • GREECE RATINGS CUT TO B- FROM B BY S&P; MAY BE CUT FURTHER

This downgrade comes just 5 months after upgrading Greece because “risks to fiscal consolidation in Greece have abated.” EURUSD is not moving much (having already cratered after US payrolls) but Greek stock ETFs are sliding once again. Continue reading »

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Feb 04

Mario-Draghi-laughing

- ECB Pulls The Trigger: Blocks Funding To Greece Via Debt Collateral – Full Statement (ZeroHedge, Feb 4, 2015):

Just what the market had hoped would not happen…

  • *ECB SAYS IT LIFTS WAIVER ON GREEK GOVERNMENT DEBT AS COLLATERAL
  • *ECB SAYS IT CAN’T ASSUME SUCCESSFUL CONCLUSION OF GREECE REVIEW

What this means simply is that since Greek banks are now unable to pledge Greek bonds as collateral and fund themselves, and liquidity is about to evaporate, the ECB has effectively just given a green light for Greek bank runs, as suddenly it has removed, both mathematically but worse politically, a key support pillar from underneath the already bailed out Greek banking system, (or merely a negotiating move to let Greece see just what kind of chaos this will create ahead of the big D-Day on Feb 25th when ELA could be withdrawn). Continue reading »

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Feb 04

- Back To Square One: Germany Throws Up All Over Varoufakis Proposal, Calls Greek Plan “Half-Baked” (ZeroHedge, Feb 3, 2015):

If there was any confusion how Germany would react to the latest Greek plan, even though as we explicitly stated yesterday, the “new” Greek plan is really the “old” Greek plan but repackaged semantically for appeal to German taxpayers, even as the proposal to involve Europe’s public entities in a distressed debt restructuring is a non-starter, all confusion can be now abandoned following remarks by Merkel’s ally Kauder in which he not only called the Greek debt plan “half-baked” saying he will no longer respond to new proposals from Athens “every day”, but making it clear that there will be no renegotiation of the existing bailout proposal saying “we have agreements with Greece and not with a government – and these agreements have to be adhered to.

 …

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Feb 04

geithner the mole

- S&P Settles DOJ Lawsuit For $1.5 Billion; Agrees Not To Accuse Government Of Retaliation For US Downgrade (ZeroHedge, Feb 3, 2015):

As had been widely rumored in the past two weeks, and as the WSJ reported overnight, moments ago McGraw Hill, parent of disgraced rating agency S&P, entered into a $1.5 billion settlement to fully resolve the DOJ lawsuit regarding S&P ratings on RMBS and CDOs. As the WSJ reported overnight, In the “span of about 30 hours, the Justice Department lowered its asking price and backed off demands that S&P admit to violating laws when it issued rosy grades on risky mortgage deals, the people said.” But the bottom line: ‘S&P agreed to … withdraw its assertion that the Justice Department lawsuit was political retaliation for the ratings firm’s 2011 downgrade.”

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