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 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

ECB problem chart

–  The ECB Suddenly Has A Huge Headache On Its Hands (ZeroHedge, June 28, 2015):

Last week we reported that as a result of the relentless surge in the Greek deposit flight, which may finally end tonight if, as now appears almost certain, the Greek government imposes capital controls, the ECB’s claims on the Greek banking system have now surpassed the total amount of Greek deposits… 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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Jun 28

“Spread Bet” Early Market Opening Indications: Stocks Tumble, Europe Crashes (ZeroHedge, June 28, 2015)

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Jun 27

–  Eurozone Rejects Greek Bailout Extension: All Bailout Programs Expire On June 30, Referendum Moot (ZeroHedge, June 27, 2015):

First thing this morning, when summarizing the flurry of overnight events, we focused on today’s final gambit by Greece:

“… moments ago Varoufakis was quoted as saying he would ask the Eurogroup for a bailout extension of a few weeks to accommodate the referendum.

And the punchline: if the Eurogroup says “Oxi”, then the entire Greek gambit, which has been a bet that to Europe the opportunity cost of a Grexit is higher than folding to Greek demands, collapses. Continue reading »

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Jun 27

20150627_vote1_0

Greek Parliament Votes In Favor Of Referendum (ZeroHedge, June 27, 2015):

Update: As expected, the Greek parliament has voted in favor of the referendum announced Saturday by PM Alexis Tsipras.

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Jun 27

Lagarde no more

IMF Confirms Greek Referendum “Irrelevant” After Program Expires On Tuesday (ZeroHedge, June 27, 2015):

If there was any confusion if, as we warned first thing today was the biggest problem with the Greek referendum namely that next weekend there will no longer be a proposal to vote on, the IMF’s Christine Lagarde just put it to rest. As she told the BBC moments ago, the Greek government’s planned referendum on the terms of any new bailout plan will be invalid after Tuesday, when the current programme expires. As a result, the Greek people would be voting on proposals that were no longer in place. Continue reading »

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Jun 27

EU FinMins Admit Real Concern, Will Do ‘Whatever It Takes’ To Avoid Market Unease (ZeroHedge, June 27, 2015):

It is clear from the EU Finance Ministers’ template-like comments to the press what the real worry is in Europe (and the world). It’s not The Greeks (Schaeuble: No other decision was possible, no problem with Greek referendum… need to see what happens next”), it’s something else:

  • *SCHAEUBLE SAYS DOING EVERYTHING POSSIBLE TO AVERT MARKET UNEASE
  • *PADOAN: INSTRUMENTS IN PLACE TO COUNTER POSSIBLE CONTAGION
  • *DIJSSELBLOEM: OUR INSTITUTIONS ARE PREPARED TO TAKE ANY ACTION
  • *STUBB: “I DO NOT SEE A RISK OF CONTAGION”
  • *SCHAEUBLE SAYS WE’LL DO EVERYTHING TO FIGHT CONTAGION THREAT
  • *PADOAN: IF INSTABILITY, ECB HAS INSTRUMENTS TO INTERVENE

And then there’s this utter rubbish:   Continue reading »

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Jun 27

Greek Stock Market May Not Open Monday, Greek Officials Warn (ZeroHedge, June 27, 2015):

Despite all the talk of “containment” and “Greece doesn’t matter,” not only are we told by anonymous EU officials that some banks may not open Monday but now, a Greek SEC Official has warned…

*GREEK BOURSE MAY NOT TRADE MON IF NO ELA EXTENDED: SEC OFFICIAL

Greeks just got CYNK’d (or Hanergy’d).

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Jun 27

Varoufakis: Creditor Proposal Offers “No Hope,” Greece At “Historic Moment” (ZeroHedge, June 27, 2015):

As Jerome Dijsselbloem fearmongers all the worst parts of the bible that are about to befall Greece, Yanis Varoufakis is explainiing the Greek decision:

  • *VAROUFAKIS: CREDITOR OFFER LACKED HOPE FOR INVESTORS, CONSUMERS
  • *VAROUFAKIS SAYS GREECE FIND ITSELF AT `HISTORIC MOMENT’

Adding that the decision by the Eurogroup (ex-Greece) to veto the program extension damages Europe overall, Varoufakis defiantly concluded, the Greek government has no mandate to accept a “recessionary” aid offer.

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Jun 27

Dijsselbloem Says Greek “Program” Will Expire On Tuesday Night, Offer Won’t Exist At Referendum Time (ZeroHedge, June 27, 2015):

And just like that, “game theory” has become “over theory”:

  • DIJSSELBLOEM SAYS REST OF EUROGROUP REGRETS GREEK REJECTION
  • DIJSSELBLOEM SAYS `GREAT CONCERNS WITH CREDIBILITY’ OF GREECE
  • DIJSSELBLOEM SAYS REST OF EUROGROUP REGRETS GREEK REJECTION
  • DIJSSELBLOEM: SITUATION IN GREECE WILL DETERIOATE IN BETWEEN

The punchline, which as we hinted earlier, is the biggest problem with the Greek referendum – there will be no deal to vote on since the program will expireon Tuesday night, which means the offer will be pulled.

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Jun 27

“This Is A Sad Decision”: Europe Responds To The Greek Referendum, Which Has One Massive Problem (ZeroHedge, June 27, 2015):

In the aftermath of yesterday’s “nuclear option” announcement by Greece, when in a dramatic after-midnight speech Greek PM Tsipras announced that Greece would hold a referendum next Sunday, the day after the US independence day, the same Greek government made it very clear how it wants the Greeks to vote.

First, it was the Greek Energy Minister Panagiotis Lafazanis, head of the Left Platform movement of Syriza, who said in comments broadcast on state-run ERT TV that a no vote by the Greek people in July 5 referendum “will open the road for a new future for the country” adding that “the dilemma facing Greeks is “whether to live better or not. Greek people are aware of difficulties of a new starting point, they’re ready to support new national effort.”

Then the alternate health and social security minister Dimitris Stratoulis doubled down telling ERT-TV that Greeks are being given the opportunity to decide the way forward and “I’m optimistic” that they will give a “resounding” no to the “provocative” demands of the country’s creditors. The only issue is the question being put to the people in the referendum.” It got better when he said that “Greeks are being asked to vote whether the country should be a colony, or not, of creditors.” Continue reading »

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Jun 27

Greek Officials Warn “Some Banks May Not Open Monday” (ZeroHedge, June 27, 2015):

Following Tsipras’ surprise referendum decision (and subsequent pulling of proposals by Troika the institutions), Greece’s bank jog has turned into a full sprint. ATM lines began to form at 2am, minutes after the announcement and now many ATMs are out of money and, as Bloomberg reports, some Greek banks are drastically limiting cash transactions. Despite all the reassurances that “banks will open Monday,” two senior bank executives have warned that some lenders will not be able to open Monday (unless more emergency liquidity is released). Crucially, this is not just about banks being in trouble – drained of deposits electronically – this is running out of physical banknotes, there is literally no more ‘real’ money left in Greek banks.

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Jun 27

Greece-ATM

It’s 2 In The Morning And Greeks Are Lining Up At ATMs; Alpha Limits Online Banking (ZeroHedge, June 26, 2015)

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Jun 27

The U.S. And EU Will Collapse Regardless Of Economic ‘Contagion’ (ZeroHedge, June 24, 2015):

In order to understand what is really going on around the globe in terms of the collapsing economy, we must set aside false mainstream versions of reality. When it comes to the EU and its current fiscal turmoil, it is very important to, in some respects, ignore Greece entirely. That’s right; forget about all the supposed drama surrounding Greek debt obligations. Will they find a way to pay creditors? Will they default? Will they make a deal with Russia and the BRICS? Will there be last-minute concessions to save the system? It doesn’t matter. It’s all a soap opera, an elaborate Kabuki theater run by international financiers and globalists.

It is most important to remember the fundamentals. Greece will default on its debts. Period. There is no way around it. Maybe Greece makes a deal today, maybe it makes a deal tomorrow; but eventually, the country’s ability to stretch out its resources in order to meet its exponential liabilities will end. It is inevitable, and no last-minute “deal” is going to change the math at the core of it all. Continue reading »

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Jun 26

Greece-Alexis-Tsipras

Greece Invokes Nuclear Option: Tsipras Calls For Referendum (ZeroHedge, June 26, 2015):

Update: Greek PM Alexis Tsipras has announced a referendum in a televised speech to the nation after another day of fractious negotiations with creditors closed without a deal.

The dramatic move comes after Athens rejected a proposal from the troika aimed at delivering some €16 billion in aid to Greece as part of an extension of the country’s second bailout program.

  • GREECE’S TSIPRAS SAYS CREDITORS POSED ULTIMATUM TO GOVT
  • GREECE’S TSIPRAS SAYS CREDITORS PROPOSALS ARE AGAINST EU RULES
  • TSIPRAS SAYS CREDITORS AIM TO HUMILIATE GREEK PEOPLE
  • TSIPRAS SAYS WILL CALL REFERENDUM ON GREEK DEAL WITH CREDITORS
  • TSIPRAS GREEK REFERENDUM WILL BE HELD ON JULY 5
  • TSIPRAS SAYS HE NOTIFIED MERKEL, DRAGHI ON REFERENDUM PLAN
  • TSIPRAS SAYS GREECE IS, AND WILL STAY PART OF EUROPE
  • TSIPRAS SAYS GREECE NEEDS TO SEND DEMOCRATIC RESPONSE TO EU

Protothema now says the Greek parliament will meet on Saturday and a referendum will be called as early as next week. Whether this is simply a last minute attempt to put pressure on EU finance ministers ahead of Saturday’s Eurogroup meeting remains to be seen, but one thing is for sure: Tsipras is playing a dangerous game with the ECB ahead of a difficult week that could very well see the imposition of capital controls. Continue reading »

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Jun 26

Greece

Greece Rejects Bailout Extension: Tsipras “Won’t Be Blackmailed”, Threatens Snap Elections (ZeroHedge, June 26, 2015):

Update: Protothema is reporting that Tsipras has confided in a fellow EU official that if the country’s creditors insist on sticking to pension and VAT red lines and if Friday’s bailout extension proposal (which the Greek government apparently views as a patronizing stopgap) is the troika’s final offer, he is prepared to call for snap elections.

Update: GREECE SAID TO REJECT EU15.5B BAILOUT EXTENSION PROPOSAL: ANA 

“[I will defend] democracy, solidarity, equality, mutual respect. These principles were not based on blackmails and ultimatum, and especially in these crucial times no one has the right to put in danger these principles. The Greek government will continue decisively to give the fight in favor of these principles, to continue to give the fight on behalf of the European people and of course on behalf of the Greek people.”

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