Apr 01

- Greece Hints At Default, Russian Pivot:”Will Not Respect IMF Deadline” – What Happens Next (ZeroHedge, April 1, 2015):

Update: GREECE GOVT DENIES PLAN TO DELAY APRIL 9 IMF PAYMENT: REUTERS

For now the algos can’t decide if Greece is joking about making the payment or joking about not making the payment.

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IMF-Greece

The hints are growing louder that the Troika-Greece standoff will not end well for either side. Spiegel is reporting that Greek Interior Minister Nikos Voutzis has stated:

“If no money is flowing to 9 April, we will first determine the salaries, pensions pay here in Greece and then ask our partners abroad to achieve consensus and understanding that we will pay 450 million euros to the IMF not on time,”

In other words… Continue reading »

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Mar 28

greece russia flags

- Greek Energy Minister Slams “Unscrupulous, Imperialist” Germany, Will Seek “Bold Alternatives” In Russia (ZeroHedge, March 28, 2015):

With fresh rumors springing late on Friday that “this” just may be the weekend Greece – with close to no funds left in either the financial or government sector – imposes capital controls, a precursor to a full-fledged Grexit, the situation in Athens is on a knife’s edge. Yesterday is also when the Syriza government submitted its list of 18 proposed reforms to the Troika: a reform package which the Guardian dubs reform-for-cash“, as Greece hopes the roughly €3 billion in revenue generated from the reforms will unlock €7.2 billion in financial assistance.

Rather, make that promises of reforms to generate €3 billion in revenue. Because the question, and problem for Athens, is which comes first: does Greece implement the reforms and generate the revenue or does Europe disburse the funds. It is a problem because the reforms will be extremely unpopular if and when they pass. According to Bloomberg, which sources Greek Skai TV, among the proposed reforms is an increase on the duty paid on cigarettes and alcohol. Other proposals include: Continue reading »

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Mar 25

H/t reader M.G.:

“More on Greece vs. Eurozone………………. appears the Greeks are not getting any more money. Add in “worsening deposit flight” the politically correct version of bank runs………..their language is beyond belief………and the fact all capital (funds) are vanishing.”


Greece's Prime Minister Alexis Tsipras p

- Europe blocks desperate Greek attempt to stay afloat (Telegraph, March 25, 2015):

Eurozone says it is “legally impossible” to return €1.2bn in rescue funds to cash-strapped Athens

The Greek government will not receive €1.2bn (£883m) in European rescue funds after officials ruled the Leftist government had no legal claims on the cash.

Athens requested a return of the funds it said were erroneously handed to creditors from Greece’s own bank recapitalisation fund, the Hellenic Financial Stability Facility (HFSF). Continue reading »

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Mar 24

FYI.


- George Soros Warns Greece “Is Going Down The Drain” (ZeroHedge, March 24, 2015):

“Right now we are at the cusp,” billionaire George Soros tells Bloomberg TV in this brief clip, the chances of Greece leaving the euro area are now 50-50 and the country could go “down the drain.” The 84-year-old fears that talks between Greece and ‘the institutions’ could “break down,” adding that  “Greece is a long-festering problem that was mishandled from the beginning by all parties,” concluding that the chances of Greece leaving the euro area are now 50-50 and the country could go “down the drain.” Finally, Soros notes, what worries him the most is Ukraine. Continue reading »

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Mar 24

VaroufakisPool

- Lifestyles Of The Not So Austere & Socialist: Island Villa Edition (ZeroHedge, March 24, 2015):

Two weeks ago Twitter got a gift when Yanis Varoufakis posed for a Paris Match photo shoot which depicted the Greek FinMin living a not-very-austere looking lifestyle. While the pictures didn’t show Varoufakis being chauffeured around in any Rolls Royces, they did include one shot of what appeared to be a rather ostentatious picnic (with the Acropolis in the background) that contrasted starkly with the plight of the large number of Greeks who now have difficulty scraping together meals. It also came at a time when the government was actively considering borrowing money from public pension funds to make debt payments to the IMF and the ECB. At the time, we said the following:

As the Greek people live in perpetual fear of financial ruin and are subjected, on a near hourly basis, to rumors about just what kind of humiliation they may be forced to endure next in order to insure that Christine Lagarde gets the money she needs to prop up Ukraine for another couple of months, Yanis Varoufakis isn’t about to roll over and allow his people to drown in despair. On the contrary, the finance minister apparently believes the best way to restore the faith is to show the Greek people just how good life could be.

One possibly fake middle finger kerfluffle and exactly no progress with European creditors later, we discover that Varoufakis has a vacation villa that he’s willing to rent for the bargain price of just €5,000/week. For those who are interested, here’s an idea of what you’ll get for your money.

Varoufakis-Views_0

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Mar 23

FYI.


grexit-3

- Why Greece is the lynchpin that could unleash economic collapse, domestic martial law and global war (Natural News, March 23, 2015):

I wish I could download to your brain everything you need to know about the European Crisis unfolding right now. The possibility of the breakup of the European Union could be the spark that sets off the global debt implosion that leads to violent conflict across the globe.

The actions of Greece, it turns out, could set off a chain reaction that leads directly to a Wall Street panic and the “bail-in” seizure of your savings accounts at your favorite hometown bank. It could also radically destabilize Eastern Europe, heightening the risk for conflict between Russia and Western European nations (including NATO members like the United States).
Continue reading »

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Mar 23

time has run out teaser

- Germany Gives Greece One Final Ultimatum After Friday’s “Optimistic” Talks Devolve Into Disagreement And Confusion (ZeroHedge, March 22, 2015):

On Friday, the main catalyst that launched the early ramp in the EURUSD, subsequently sending both the Dax over 12,000, and the US stock market soaring, was speculation and hope that the latest round of Greek talks on late Thursday night ahead of tomorrow key meeting between Tsipras and Merkel in Berlin, had gone well, and there was a reason to be optimistic about the near-term for a Greece which increasingly more see as on the verge of expulsion from the monetary union. We explained as much, although we added the provision that at this point it is likely too late to do much if anything about Greece in “German DAX Surges Over 12,000 On Greek Optimism, But The Money Has Run Out.”

Now, courtesy of reporting by the FT, we can also rule out any of the so-called optimism in the aftermath of Thursday’s talks because as Peter Spiegel reports, not only was there no real consensus, but the talks “ended in disarray”, and even though “Greece’s prime minister and fellow Eurozone leaders emerged from a meeting early on Friday morning touting a breakthrough agreement to unlock much-needed bailout funds for Athens — only to fall into disagreement hours later about what it all meant.” Continue reading »

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Mar 20

greece beggar

- Shocking austerity: Greece’s poor lost 86% of income, but rich only 17-20% (Keep Talking Greece, March 20, 2015):

Greece’s unbalanced austerity and drastic increase of poverty. The poorest households in the debt-ridden country lost nearly 86% of their income, while the richest lost only 17-20%.  The tax burden on the poor increased by 337% while the burden on upper-income classes increased by only 9% !!! This is the result of a study that has analyzed 260.000 tax and income data from the years 2008 – 2012.

According to the study commissioned by the German Institute for Macroeconomic Research (IMK) affiliated with the Hans Böckler Foundation: Continue reading »

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Mar 20

H/t reader squodgy:

“This is too good to miss….classic sitcom material, IMF sounds like Sheldon Cooper…..”


- IMF said to call Greece most unhelpful client in its history (Chicago Tribune/Bloomberg, March 18, 2015):

ATHENS — International Monetary Fund officials told their euro-area colleagues that Greece is the most unhelpful country the organization has dealt with in its 70-year history, according to two people familiar with the talks.

In a short and bad-tempered conference call on Tuesday, officials from the IMF, the European Central Bank and the European Commission complained that Greek officials aren’t adhering to a bailout extension deal reached in February or cooperating with creditors, said the people, who asked not to be identified because the call was private. Continue reading »

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Mar 20

the-unraveling

- The Unraveling Is Gathering Speed (OfTwoMinds, March 18, 2015):

Debt saturation and debt fatigue = diminishing returns on central bank tricks.

Does anyone else have the feeling that things are not just unraveling, but that the unraveling is gathering speed?
Though quantifying this perception is more interpretative than statistical, I think we can look at the ongoing debt crisis in Greece as an example of this acceleration of events. Continue reading »

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Mar 19

Varoufakis-austerity-editionLagarde-Varoufakisscrewed

Related info:

- ECB Prepares For Grexit, Anticipates 95% Loss On Greek Debt


- After Pillaging Pensions, Greece Raids Utilities To Repay Troika; Bonds Plunge As Bank Run Accelerates (ZeroHedge, March 19, 2015):

Following yesterday’s news that the ECB is now running simulations on what a Grexit would mean for Greek bond prices (spoiler alert:
“fundamentals” suggest a 95% loss), overnight we got more confirmation that Mario Draghi continues to tighten the screws on the Greek sovereign corpse, when Bloomberg reported that the ECB once again raised the maximum amount of emergency liquidity available to Greek lenders by €400 million, but less than the Greek central bank requested, people familiar with the decision said. Continue reading »

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Mar 18

drachma 10000

- ECB Prepares For Grexit, Anticipates 95% Loss On Greek Debt (ZeroHedge, March 18, 2015):

Dear Greek readers: the writing is now on the wall, and it is in very clear 48-point, double bold, and underlined font: when the ECB “leaks” that it is modelling a Grexit, something Draghi lied about over and over in 2012 and directly in our face too, take it seriously, because it is time to start planning about what happens on “the day after.” And incidentally to all those curious what the fair value of peripheral European bonds is excluding ECB backstops, the ECB has a handy back of the envelope calculation: a 95% loss.

Which also is the punchline, because while the ECB is making it very clear what happens next in the case of a “Graccident“, it has yet to provide an explanation how it will resolve the billions of Greek debt held on its own balance sheet which are about to be “marked-to-default“… Continue reading »

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Mar 18

Grexit-2

- Greece Faces Cash Crunch This Friday Without “Plan A Or Plan B”: What Happens Next (ZeroHedge, March 17, 2015):

Greece will need to find €2 billion by Friday in order to repay creditors as Schaeuble, others see no way out. With no contingency plan, Athens’ day of reckoning may be at hand. Morgan Stanley is out today with a note diagramming what happens next.

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Mar 17

- Varoufakis’ Latest Fiasco: FinMin Claims “Middle Finger To Germany” Clip Fake; Germany Disagrees (ZeroHedge, March 16, 2015):

It was a tough weekend (again) for Greece’s embattled FinMin Yanis Varoufakis. After walking out on a CNBC interview when asked if he was a liability (after his photo shoot caused a storm in Greece), a video surfaced showing the outspoken minister giving the middle finger to Germany saying “solve the problem yourself.” He has come out swinging this morning, as The Telegraph reports, Varoufakis exclaims, “That video was doctored. I’ve never given the finger, I’ve never given the middle finger ever.” However, the user who uploaded it to YouTube denied it was a fake and, based on The Telegraph’s poll, 67% believe Varoufakis did it. Furthemore, the German talk-show that aired the clip has confirmed “no evidence of manipulation or falsification,” and, for the first time, a majority of Germans now want Greece out of the union.

The selected image from the video…

Greece “sticking the finger to Germany” 

varoufakis finger

Which he denied as ‘fake’ but… 67% of survey respondents do not believe him…

20150217_vfak

In a further sign of the deterioration of trust in the ‘union, 52% of polled Germans said they no longer wanted Greece to remain part of the currency union, up from 41% last month.

Worst of all, ekathimerini reports that German TV has now stated that the video is not fake, suggesting Varoufakis is in fact a liar.

Varoufakis, who took part in a live discussion with other guests via a link from Athens, insisted on air that the video of him speaking at a 2013 event in the Croatian capital, Zagreb, had been “doctored”.

Jauch, the host of the popular show that draws millions of viewers, announced at the end of the programme that the video would be examined to try to clear the matter up.

“As far as we know at this stage the editorial department of Guenther Jauch can determine no indication whatsoever of manipulation or falsification in the video shown during the live show,” it said in a statement Monday.

It said the video was being further checked by experts.

So will Varoufakis reign as FinMin outlast Greece’s liquidity, pardon, (lack of) cash flow?

screwed

Related info:

- Greece Passes Law To Plunder Pension Funds

- Greece Folds (AGAIN); Ready To Propose “New” Reforms Immediately

- Greece Said To Tap Social Security Capital To Fund T-Bill Rollover

- AND NOW: Greek Government Considers “BORROWING” From Pension Funds To Repay IMF

- The Reason Why The Eurogroup Rushed To Approve The Greek Reform Package? (You can’t make this stuff up!)

- Troika ‘Happy’ With Revised List Of Greek Reform Promises: Full Varoufakis Letter

- Greek Infighting Begins After Historic Syriza Member Slams Agreement, Apologizes For “Contributing To Illusion” Of Change

- What Ordinary Greeks Think Of Friday’s Deal: “We Went Through Two Months Of Agony To Realize We Are Still A Debt Colony”

- The Assassination of Greece

- Greece’s Syriza Capitulates To The EU

- How Greece Folded To Germany: The Complete Breakdown

- Full Eurogroup Statement On Greece – Bottom Line: Greece Caves On Pretty Much Everything

- George Soros “Trojan Horse” Inside The New Greek Government?

‘Change’ has finally arrived in Greece …

change-we-can-believe-in

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Mar 17

- Germany Has Had It With Greece: Schauble Says “Doesn’t Know What To Do With Greece Now” (ZeroHedge, March 16, 2015):

In his fiercest rhetoric yet, Germany’s angry Finance Minister Wolfgang Schaeuble unloaded at a CDU event today:

  • SCHAEUBLE SAYS DOESN’T KNOW WHAT TO DO WITH GREECE NOW
  • SCHAEUBLE SAYS NEW GREEK GOVERNMENT HAS DESTROYED ALL THE TRUST THAT HAD BEEN REBUILT

He went on to explain that “no one I talk to sees how Greek approach can work,” which perhaps explains why Greek 3Y bond yields spiked back above 20% for the first time since the election today.

Some additional headlines: Continue reading »

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Mar 15

varoufakis finger
If the German media needed a photo-op which to put on their front pages and rile up public opinion against Greece even more, they just got it.

- Varoufakis’ “Strategy”: “No Grexit, But Default Inside The Euro, And Stick The Middle Finger To Germany” (ZeroHedge, March 15, 2015):

In a recently uncovered speech by the Yanis Varoufakis that took place in May of 2013, and which was either ingenious or naive beyond comprehension – we can’t decide – or is simply the contradictory stream of consciousness of a financial expert who has become the epitome of saying one thing now, and its diametrical opposite 5 minutes later, the Greek finance minister explains why he was for a Greek default but against returning to the Drachma. Continue reading »

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Mar 15

Lagarde-Varoufakisyanis schauble shaking handsscrewed

Related info:

- Greece Passes Law To Plunder Pension Funds


- Varoufakis Walks Out Of CNBC Interview When Asked If He Is Now A “Liability” (ZeroHedge, March 15, 2015):

Having been given a few minutes to explain how it’s so different now in Greece: Troika is now ‘The Brussels Group’, austerity cuts are now ‘reforms’, and bailouts are now ‘bridge loans'; Greek FinMin Varoufakis asked for peace and quiet from the press so that they could work on “solutions” for the Greek people…

And then CNBC’s Julia Chatterly asked about the Paris Match photo-shoot (which is has created fierce storm of controversy in Greece) and specifically whether he “was a liability for his party?”

Varoufakis response was (serial killer) calm as he looked her in the eyes, demanded he be allowed to ‘no comment’ – “You will allow me not to comment on particular stories in the press,” – then commented, six-year-old-child-in-a-schoolyard-like “are you a liability for your channel?”

The brief clip below…

Varoufakis criticized the press for “concocting stories” and added that the Greek government now needed “peace and quiet” in order to get “down to work to put Greece on the path of recovery.”

… or just following more orders from the European “uber alles” Continue reading »

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Mar 14

Greece Financial Crisis Riots


- Europe Has A Modest Proposal For Greece: “Don’t Pay Wages For One Or Two Months” (ZeroHedge, March 13, 2015):

The Greek liquidity, pardon “cash flow” problems are so bad, not only Zero Hedge, but also Bloomberg has launched a daily maturity tracker of how much money Greece has to pay either to the IMF or to prefund T-Bill rollovers. This is what Bloomberg blasted out earlier today:

Greece is preparing for another week of hurdles that ends with a ~EU2b repayment on March 20. Most economists say that it will be difficult for Greece to get past end of March without fresh EU funds. Here’s a timeline of the most important events scheduled this week:

  • Monday, March 16: Greece to repay about EU577m in IMF loans
  • Wednesday, March 18: Greece’s debt agency PDMA to sell 13- week treasury bills

Which explains why as we reported yesterday, Greece passed a law to plunder pension funds, one which would allow the government to fully invest reserves of pension funds and other public entities kept in Bank of Greece deposit accounts in Greek sovereign notes. Continue reading »

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Mar 14

Varoufakis-austerity-edition

More photos and tweets here:

- Lifestyles Of The Not So Austere & Socialist: Greek FinMin Edition (ZeroHedge, March 13, 2015):

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Mar 13

SyrizaSyriza-change
Lagarde-Varoufakisyanis schauble shaking handsscrewed

From the article:

“We wonder how the increasingly disenfranchised Greeks will react when they find their savings (whatever there is left) are now being directly plundered to fund the nation’s transfer payments (via The IMF) to Ukraine.”


- Greece Passes Law To Plunder Pension Funds (ZeroHedge, March 12, 2015):

Having previously hinted that they might ‘dip’ into public pensions funds for some short-term cash to payback The IMF, and then confirming that the plan is to repo that cash from pension cash reserves (raising concerns about how they will unwind the repo – i.e. pay it back); the Greek government finally signed the bill today that enables them to plunder the Greek people’s pension funds (for their own good).The massive irony of this bill is the bill enables greek deposits to be fully invested in Greek sovereign bonds… which Tsipras and Varoufakis both admitted today is “unsustainable” and “will never be repaid.”

  • *GREEK GOVT SUBMITS BILL, ALLOWING USE OF PENSION FUND RESERVES

As Bloomberg reports,

Cash reserves of pension funds and other public entities kept in Bank of Greece deposit accounts can be fully invested in Greek sovereign notes, according to amendment to be submitted in parliament, country’s finance ministry says in e-mailed statement. Continue reading »

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