ECB Pulls The Trigger: Blocks Funding To Greece - Full Statement

Zerohedge ^ | 1-4-2015 | Durden

[tcrlaf]

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 just given a green light for Greek bank runs... and all the worst parts of the bible (or merely a negotiating move to let Greece see just what kind of chaos this will create).

And now finally, after many years of investing in ECB repo collateral, pardon Greek debt, Greek banks finally will ask what the "fundamental" value of all that Greek government debt they bought really is. Judging by the Greek ETF's reaction, the answer is lower.

The only question now is whether the Greek Central Bank, which the ECB said is now sufficient to meet bank liquidity needs, is allowed to print Euros. If not, the Greek experiment at trying to stick it to Europe is about to crash and burn spectacularly.

Joking aside, what is really at stake now, if only for Greece, is everything: Syriza either folds, and cedes by withdrawing all demands, thus effectively ending its mandate less than 2 weeks after coming to power, or it exits the Eurozone.

[tcrlaf]

Things about to heat up in the financial world. Just broke a little while ago.

Draghi basically just bet the entire future of the European financial Union on calling the Greek Syrza's bluff.

Meanwhile, on CNBC: "This is a developing story. Check back for updates."

[C19fan]

Talk about laying down the hammer.

[tcrlaf]

Credit Default Swaps in 3... 2... 1...

OH WAIT....
Just like in 2008, the Central bankers will determine this isn’t a “Trigger Event”, and that contract and money you paid for the Default Insurance just doesn’t exist anymore.

[Shadow44]

6 years overdue. Let’s get this farce over with.

We might actually have started economic recovery by now if the Banks accepted reality in 2008.

[Tzimisce]

They’re never going to get their money back from Greece, but I’m betting they’ll keep pouring money down the Greek hole.

[RKBA Democrat]

Ka BOOM.

Remember today ladies and gents. It’ll be one that history remembers.

The zerohedge analysis is wrong. Never fight against someone who is crazy or who has nothing to lose. The government is commie so we can assume crazy applies. And Greece in general has nothing to lose. I doubt they’ll be so polite as to negotiate an orderly exit from the EU. I suspect they’ll simply print Euros on the one hand (who is going to stop them? ) and repudiate their debt on the other. Mutually assured destruction.

[Attention Surplus Disorder]

That was good for the equivalent of a -175 DJ move after hours.

[Attention Surplus Disorder]

Did Chelsea’s husband get the rest of his 52% out or is Billy Jo gonna have to give half a dozen speeches?

[familyop]

"...since Greek banks are now unable to pledge Greek bonds as collateral and fund themselves, and liquidity is about to evaporate,..."

Debt as collateral. Default upon default. Amazing!

[SunkenCiv]

They want what they want, but I don't think they'll pull that. They'll struggle for a few months, then their political fortunes will turn south.

---

Merkel ready to let Greece exit eurozone: report #4 posted on 01/05/2015 12:55:27 AM PST by pepsionice

I think there are four things which the news media and public have not come to grasp about this mess.

1. The amount of debt and economic issues are probably more serious on the average citizen than everyone imagined. If you are a diabetic....you have to use your own savings and pay cash to get insulin. Name any disease, it's serum or pills, and if it's made outside of Greece (90-percent chance), then you will burn up your savings to survive. Since 2009, Greeks have been waiting on the turn-around. It hasn't happened. It might be two decades before some economic change occurs.

2. The truth is, Greece never was ready for the Euro. It may never be ready for it.

3. Once they end their relationship to the Euro and go back to the Drachma....Greeks will find the economy just about the same and most Greeks will be surviving off the dollar or Euro as their real hard currency....rather than the fake Drachma which everyone will be trading with.

4. If you think this January election is the end of the political chaos....I'd take a deep breathe and prepare for another election before the end of the year. This January election doesn't really fix anything....it just resets the clock and makes people think there's still a better chance ahead, where there isn't.

---

[SunkenCiv]

from wiki-wacky:

Rank	Country (or dependent territory)	July 1, 2015 projection[1]	% of pop.	Average relative annual growth (%)[2]	Average absolute annual growth [3]	Estimated doubling time (Years)[4]	Alternative figure	Date	Source
1	Germany	81,172,000	16.01	0.33	271,000	207	80,767,000	December 31, 2013	Monthly official estimate
2	United Kingdom	64,915,000	12.80	0.63	406,000	110	64,105,700	July 1, 2013	Official estimate
3	France	64,352,000	12.69	0.47	298,000	149	66,092,000	January 1, 2015	Monthly official estimate
4	Italy	61,037,000	12.04	0.50	305,000	138	60,782,897	August 31, 2014	Monthly official estimate
5	Spain	46,335,000	9.14	-0.28	-129,000	-	46,464,053	July 1, 2014	Official estimate
6	Poland	38,530,000	7.60	0.06	23,000	1,161	38,496,000	December 31, 2013	Official estimate
7	Romania	19,822,000	3.91	-0.41	-81,000	-	19,942,642	January 1, 2014	Official estimate
8	Netherlands	16,946,000	3.34	0.39	66,000	178	16,913,100	February 4, 2015	Official population clock
9	Belgium	11,274,000	2.22	0.55	62,000	126	11,237,963	December 1, 2014	Monthly official estimate
10	Greece	10,769,000	2.12	-0.11	-12,000	-	10,816,286	May 24, 2011	Final 2011 census result
11	Czech Republic	10,521,000	2.08	-0.09	-10,000	-	10,528,477	September 30, 2014	Official estimate
12	Portugal	10,311,000	2.03	-0.56	-58,000	-	10,427,301	2013	Official estimate
13	Hungary	9,838,000	1.94	-0.26	-26,000	-	9,877,365	January 1, 2014	Official estimate
14	Sweden	9,806,000	1.93	1.11	108,000	63	9,743,087	November 30, 2014	Monthly official estimate
15	Austria	8,617,000	1.70	0.69	59,000	101	8,572,895	October 1, 2014	Official estimate
16	Bulgaria	7,185,000	1.42	-0.57	-41,000	-	7,245,677	December 31, 2013	Official estimate
17	Denmark	5,676,000	1.12	0.48	27,000	145	5,655,750	October 1, 2014	Official estimate
18	Finland	5,487,000	1.08	0.46	25,000	152	5,472,421	November 30, 2014	Monthly official estimate
19	Slovakia	5,420,000	1.07	0.11	6,000	626	5,415,949	September 30, 2014	Official estimate
20	Ireland	4,630,000	0.91	0.35	16,000	200	4,609,600	April 2014	Official estimate
21	Croatia	4,230,000	0.83	-0.31	-13,000	-	4,267,558	July 1, 2012	Official estimate
22	Lithuania	2,911,000	0.57	-0.75	-22,000	-	2,921,920	January 1, 2015	Monthly official estimate
23	Slovenia	2,067,000	0.41	0.19	4,000	358	2,063,739	February 4, 2015	Official population clock
24	Latvia	1,980,000	0.39	-0.85	-17,000	-	1,988,400	January 1, 2015	Monthly official estimate
25	Estonia	1,315,000	0.26	0.46	6,000	152	1,312,252	January 1, 2015	Official estimate
26	Cyprus	876,000	0.17	0.46	4,000	151	865,900	December 31, 2012	Official estimate
27	Luxembourg	570,000	0.11	2.52	14,000	28	549,700	December 31, 2013	Official estimate
28	Malta	425,000	0.08	0.47	2,000	147	417,432	November 20, 2011	2011 census result
	Total	507,017,000	100.00	0.26	1,293,000	271

[tcrlaf]

President Of Euro Parliament Warns Greece Risks National Bankruptcy; Varoufakis Replies: “Greece Already Is Bankrupt”

[SnuffaBolshevik]

"I suspect they’ll simply print Euros on the one hand (who is going to stop them? ) and repudiate their debt on the other."

That's an interesting point.

Where are Euros actually printed? A central location or does each member country crank their own out?

If the latter, that sounds like a license for disaster.

[Revel]

Yes they can:

http://www.polycapitalist.com/2012/05/greece-can-physically-print-its-own.html

[RKBA Democrat]

Each country prints its own.

And again, what would the EU going to do about it? Cancel all their currency? Invade? I think Vlad Putin might have some objections to that.

[Billthedrill]

the ECB has just given a green light for Greek bank runs...

Or a long bank holiday, for which the smart ones are already ready. There are mattresses that will be a little less full, though.

Greek banks finally will ask what the "fundamental" value of all that Greek government debt they bought really is. Judging by the Greek ETF's reaction, the answer is lower.

Tuesday has arrived, the hamburger is long gone, and Wimpy is backtracking on his promise. Anyone who is surprised by this was a little naive to begin with.

[Revel]

The only limitation I read about is that Greece may have trouble getting the right ink and paper.

[RKBA Democrat]

Time will tell of course, but really...why wouldn’t the Greeks do exactly that? These ARE hardcore commies. Commies repudiate debt. They revel in the destruction of banks.

[SunkenCiv]

Politicians fear nothing more than loss of power. Their fellow Greeks want something for nothing, and don’t live in a society where there are prospects for growth. The population is aging, and while they are on the low end of the larger EU states, their idea of economic freedom is charging lunch and billing it to someone else. The EU would act immediately on rogue activity of that kind, and it would hurt Greece. Right now there aren’t enough assets in Greece to repossess if the creditors seized everything and put the whole population on a raft the hell out of town. Plus, the creditors would own Greece, yuck.

[fella]

Greece, not to big to fail.