Jun 22

“… suddenly the reality of a Greek bail-in which could amount to up to 100% of total Greek deposits, becomes all too real. “


 

greek deposits vs ECB claims

For The First Time Ever, Total ECB Claims On Greek Banks Surpass Total Greek Deposits (ZeroHedge, June 22, 2015):

If it seems like it was only yesterday (in trading days) when the ECB boosted its latest Greek ELA by €1.8 billion to a record high €85.9 billion, it’s because it was.

Fast forward to Monday morning, when following a Friday bank run which sucked out another €1.6 billion coupled with another €1.6 billion withdrawn over the weekend and today, and perhaps the only question is why did the ECB not hike its latest “emergency” ELA disbursement more than just another €1.9 billion to a new record high of €87.8 billion: after all it will have no choice but to increase its emergency liquidity for Greece’s increasingly more insolvent banks (because the collateral against which the ECB is lending after a modest haircut would be worth precisely zero if the ECB were to pull its backstop to the Greek banking system) tomorrow, or else engage Goldman’s plan B in which a Greek terminal bank run ends up in a default and as a result the ECB proceeds to boost its QE to “regain credibility”, send the EUR plunging (to assist the internal revaluation), and assure another year of record bonuses for Goldman. Continue reading »

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Jun 22

H/t reader squodgy:

This is not what we have been fed even by the alternative press.

It seems the Greeks might be split as Tsipras plays ducks & drakes between the Troika and Vlad.

Seems to me he just might be creating a big dead end for his people.


THE LATEST: Greek demonstrators march in Athens to show support for staying in the euro (AP, June 22, 2015)

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Jun 21

Merkel Tsipras

Greece Told To Have A Deal Ready Before Monday Meeting; Tsipras Submits Revised Plan With No Pension Cuts (ZeroHedge, June 21, 2015):

Update: the farce must go on because according to Bloomberg the “final final” Greek proposal never made it, and was, ahem, lost in tranmission: EU HAS RECEIVED NO NEW PROPOSAL FROM GREECE YET: EU DIPLOMAT – BLOOMBERG

* * *

With just under 24 hours until Monday’s final summit after which even JPMorgan now agrees the ECB will be forced to use a nuclear option and limit or cut Greek ELA thus imposing capital controls as a “negotiating tactic”, earlier today both France and Germany told Greece it must have a reform deal agreement with the Troika finalized and delivered before a crucial leaders’ summit between Athens and its creditors on Monday; in other words before trading opens on Monday. Continue reading »

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Jun 21

Greek GDP vs forecasts_0

Greek GDP: The Shocking Reality Vs IMF Forecasts; And Who Is To Blame For The Greek Implosion (ZeroHedge, June 21, 2015):

With a Greek default, shortly followed by a Grexit, a collapse of the “irreversible union” (but… but… “political capital“), and ultimately the end of the latest European monetary union experiment (the latest in a long and illustrious series of prior failures) now seemingly imminent, the blame game has begun. As the NYT noted overnight “the recriminations that would then fly would be so bitter that they would inflict a second round of damage.”

But who is really to blame? Continue reading »

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Jun 21

europe-greece

The euro does not have a problem… it is the problem (Telegraph, June 20, 2015):

Europe’s leaders must face the truth that the single currency now poses fundamental threat to global financial stability

By Liam Fox MP, Conservative MP for North Somerset and former Defence Secretary

There will be a temptation to gloat over the Greek crisis over the next week and a queue of people waiting to say “I told you so”. Both would be unwise.

Whether Greece exits the eurozone or not (and it is an increasingly absurd charade), there remain a number of uncomfortable truths that the rest of the countries of Europe, whether in the eurozone, the EU or neither will have to confront. The first is that Greece is a failing state, something that will have implications far beyond the merely financial. Long before the financial crisis hits the global economy in 2008-09, Greece was in trouble.

Continue reading »

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Jun 21

H/t reader M.G.:

“Unless all three creditors agree that Greece can borrow more money to make a payment………nothing will work? Reading this article tells me the entire plan is insane…………..


Greece

Greece and eurozone leaders in last-ditch scramble to reach deal (Guardian, June 21, 2015):

Greek prime minister, Alexis Tsipras, is thought to have offered concessions on VAT and pensions in return for some form of eventual debt relief

The Greek prime minister, Alexis Tsipras, and European leaders were attempting to stitch together a last-minute Greek bailout deal on Sunday following a frantic round of phone calls to discuss an outline agreement.

The high-level diplomacy comes as eurozone finance ministers and their government leaders prepare for a key summit in Brussels on Monday that could determine whether or not Greece remains a member of the group. Continue reading »

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Jun 20

EurosPrint

Meanwhile, Greece Is Quietly Printing Billions Of Euros (ZeroHedge, June 20, 2015):

Earlier today we showed why Greece is now literally living on borrowed time. The combined €2.9 billion in ELA cap increases ‘generously’ bestowed upon the flailing Greek banking sector by the ECB last week looks to have been barely enough to keep things from “ending very differently” (to quote Kathimerini) at the ATMs on Friday.

But perhaps more importantly from a big picture perspective, Greece may have already breached the upper limit of its borrowing base. JPM calculates Greek banks’ eligible collateral at €121 billion (€38 billion in EFSF bonds €8 billion in government securities, and €75 billion in “credit claims”). With Friday’s ELA increase, the country’s total borrowings (that’s OMO plus ELA) amount to some €125 bilion. Why would the ECB allow this? Because it knows the breach will be promptly limited or reversed on Monday, or there will be a deal.

So, it is literally “deal or no deal” time, because if JPM is correct and eligible collateral was either exhausted two weeks ago or, in the best case scenario, is right at the limit, capital controls will need to be put in place as early as Tuesday at which point the ATMs will officially stop dispensing freshly-minted euros which, incidentally, brings up an important point. As Barclays notes, during the same period over which Greek banks lost nearly €30 billion in deposits, banknotes in circulation jumped by some €13 billion. In short, because Greeks are increasingly prone to stuffing their euros in mattresses, a large proportion of the deposit flight has come in the form of hard currency withdrawals, meaning the Bank of Greece is forced to (literally) print billions in physical banknotes: Continue reading »

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Jun 20

“The Collateral Has Run Out” – JPM Warns ECB Will Use Greek “Nuclear Option” If No Monday Deal (ZeroHedge, June 20, 2015)

“If no agreement is reached on Monday, then the ECB will have little reason to show further flexibility and it will likely freeze its ELA limit on Greek banks. As a result capital controls will become almost inevitable after Monday.”

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Jun 20

ATMTease

–  “Bank Holiday” Preparations Begin In Greece, Lines Form At Athens ATMs (ZeroHedge, June 20, 2015)

 

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Jun 20

H/t reader M.G.:

“An article on Spain, and it’s so-called recovery. The second paragraph ought to warn everyone………..it is an IMF report. According to this article, Spain is recovering (regardless 50% of working age people under 25 are unemployed….that is the percentage they admit, makes one wonder what the real numbers involve), so is Portugal, Ireland, Iceland, ETC.

Spain is hurting terribly because none of the working people are earning, just treading water at best. When Greece falls, all the lies and holes in the other Euro economies will be exposed for the world……..They list the nations that exited the so-called bailout programs, but none address the growing unemployment in the real economy.

In Spain, 98% of all real estate inquiries are made by those who don’t speak Spanish, foreign greedy guts who want overseas properties cheap………….

At some point, something has to be done about the greedy guts, they have ruined the western economy, and the next hit is about to crush more millions of people…………

This article is worth reading, from the UK Guardian.”


As Greece stares into the abyss, has Spain escaped from crisis? (Guardian, June 20, 2015)

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Jun 20

ukraine vs greece

IMF Humiliates Greece, Repeats It Will Keep Funding Ukraine Even If It Defaults (ZeroHedge, June 19, 2015):

One week ago, we were stunned to learn just how low the political organization that is the mostly US-taxpayer funded IMF has stooped when, a day after its negotiators demonstratively stormed out of the Greek negotiations with “creditors”,  Hermes’ ambassador-at-large Christone Lagarde said that the IMF “could lend to Ukraine even if Ukraine determines it cannot service its debt.” Continue reading »

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Jun 20

H/t reader M.G.:

“An article on Russian-Greek financial agreements, in the mix and those completed. The gas pipeline is a done deal, but the Greek port is of great value to Russia…..Just look at a globe of the world to see why.

This story is being ignored by US media of course…….paragraph three where the Greek PM says the center of financial gravity has shifted east is far more truthful than acknowledged by western leaders………..

The only story addressing this subject I have found so far, again in the UK Guardian.”


Greek prime minister reaches out to Vladimir Putin for help in financial crisis (Guardian, June 19, 2015):

Alexis Tsipras in Russia dismisses criticism that he should be in Brussels solving debt standoff: ‘We are ready to go to new seas to reach new safe ports’

Alexis Tsipras, the Greek prime minister, has made a broad overture to Russia as he seeks a way out of his country’s debt and currency impasse, telling Vladimir Putin that Greece wants new partners to help it out of the crisis.

In a speech delivered in front of Putin in Russia, Tsipras said Moscow was one of Greece’s most important partners, and dismissed critics who wondered why he was in St Petersburg and not in Brussels trying to secure an urgent deal with European creditors. Continue reading »

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Jun 19

Roumaliotis

IMF “trained” Greek journalists in Washington D.C. to spin stories in favor of IMF and European Commission (Red Pill Times, June 18, 2015):

Greece’s former representative to the IMF, Panagiotis Roumeliotis, has testified that Greek journalists attended seminars funded by the IMF and were instructed to present the IMF in a favorable light.

In what can only be described as a shocking testimony, Greece’s former representative to the IMF, Panagiotis Roumeliotis, in front of the special parliamentary committee on the Greek debt, said that several Greek journalists were “trained” in Washington D.C. in order to support the positions of the IMF and the European Commission in Greek media.

Roumeliotis testified that…

“The IMF trained” greek journalists so that “Greek journalists can promote the positions of the IMF and the European Commission in Greek media.”

According to Roumeliotis, the seminars and training classes took place in Washington D.C., as well as various sessions taking place in Greece. Continue reading »

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Jun 19

ECB Gives Greek Banks Barely Enough Cash To Cover One Day’s Bank Run  (ZeroHedge, June 19, 2015):

Yesterday evening, after what had been a dramatic surge in the Greek bank run which has resulted in over €3 billion in cash withdrawn through Thursday night, the Greek central bank requested an emergency cash dispensation from the ECB under the country’s Emergency Liquidity Assistance program, just one day after the ECB granted the latest €1.1 billion expansion in the ELA. Rarlier today, in an unscheduled session, the ECB did as requested, however it granted Greece far less than the amount it sought, and according to MarketNews reports, the ECB gave Greece just €1.8 billion in addition funds.

This means that Greek deposits have declined by over €5 billion in the past 7 days alone, as indicated by the surge in the ELA from €80.7 billion on June 10 to €85.9 billion currently.

Worse, as Reuters reported moments ago, on Friday alone there was another €1.2 billion in deposit outflows which means that the entire ELA increase has already been used up, and Greece is again facing the abyss. Continue reading »

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Jun 18

Putin

Moscow Furious After Both Belgium And France Freeze Russian State Assets (ZeroHedge, June 18, 2015):

Russia has summoned the Belgian ambassador to Moscow and threatened to “respond in kind” after bailiffs instructed nearly 50 Belgian companies to disclose Russian state assets, a move which reportedly sets the stage for the seizure of Russian property in connection with the disputed $50 billion Yukos verdict. Essentially, Russia was required to submit a plan for a €1.6 billion payment pursuant to the ECHR decision by June 15, and because Moscow did not do so, Belgium will attempt to extract the payment on its own. Continue reading »

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Jun 18

Greece

ECB “Blesses” Greek Bank Runs, Says Unsure If Banks Will Reopen Monday (ZeroHedge, June 18, 2015):

Update: what else – an official denial: EU OFFICIAL: ECB DIDN’T SAY GREEK BANKS MAY NOT OPEN MONDAY

So, Benoit did not say what he said?

* * *

Just minutes after Greek FinMin Varoufakis warned people were trying to “incite capital flight” from Greece and Dijsselbloem stated that “capital outflows from Greece are worrying,” Reuters is reporting that The ECB dropped the bank run hammer:

ECB TOLD EURO ZONE FINANCE MINISTERS IT WAS NOT SURE IF GREEK BANKS WOULD BE ABLE TO OPEN ON MONDAY- OFFICIALS

Friday sees Russia-Greece meetings and Euro area leaders are supposedly meeting on Monday evening due to the seriousness of the situation so it appears the endgame is looming large one way or another.

The Greeks said this: Continue reading »

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Jun 17

Greek Debt Committee Just Declared All Debt To The Troika “Illegal, Illegitimate, And Odious” (ZeroHedge, June 17, 2015):

It was in April when we got a stark reminder of a post we first penned in April of 2011, describing Odious Debt, and why we thought sooner or later this legal term would become applicable for Greece, because two months ago Greek Zoi Konstantopoulou, speaker of the Greek parliament and a SYRIZA member, said she had established a new “Truth Committee on Public Debt” whose purposes was to “investigate how much of the debt is “illegal” with a view to writing it off.”

Moments ago, this committee released its preliminary findings, and here is the conclusion from the full report presented below:

All the evidence we present in this report shows that Greece not only does not have the ability to pay this debt, but also should not pay this debt first and foremost because the debt emerging from the Troika’s arrangements is a direct infringement on the fundamental human rights of the residents of Greece. Hence, we came to the conclusion that Greece should not pay this debt because it is illegal, illegitimate, and odious. Continue reading »

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Jun 17

Drachma

Got gold and silver?


Greece likely to exit euro and EU without deal with creditors – central bank (RT, June 17, 2015):

Athens is likely to leave the eurozone and the EU if it fails to reach an agreement to unlock a €7.2 billion bailout installment, said a statement from the Bank of Greece.

“Failure to reach an agreement would, …, mark the beginning of a painful course that would lead initially to a Greek default and ultimately to the country’s exit from the euro area and – most likely – from the European Union,” the bank said in a statement Wednesday.

The manageable debt crisis Greece is now facing may turn into an uncontrollable and broader crisis, dangerous for the banking system and financial stability, the bank added. An exit from the eurozone would only add to hostility that is already felt, and, as a result, a deep exchange rate crisis would make inflation skyrocket. Continue reading »

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Jun 17

roundup-the-ultimate-killing-machine

French minister calls on shops to stop selling Monsanto’s Roundup (Reuters, June 14, 2015):

French Environment and Energy Minister Segolene Royal said on Sunday she would ask garden shops to stop selling Monsanto’s Roundup weedkiller as part of a wider fight against pesticides seen as potentially harmful to humans.

“France must be offensive on stopping pesticides,” Royal told France 3 television. “I have asked garden shops to stop sales of Monsanto’s Roundup.”

She did not specify how she would enforce this. Continue reading »

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Jun 16

Tsipras-Hope

“Horrified” Syriza Hardliners Back “Immediate” Greek Bank Nationalization, Euro Exit (ZeroHedge, June 16, 2015):

Caught between a recalcitrant Left Platform and exasperated creditors, Greek PM Alexis Tsipras must decide how he wants history to remember his tenure as Prime Minister. Either he will be the leader who allowed Greece to crash out of the euro on its way to a redomination-driven economic collapse, or he will go down as the fiery advocate for change who caved under pressure and allowed the troika to stamp out democracy in the place where it was born. 

 

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