Posted on 02/04/2015 1:17:23 PM PST by 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.
(Excerpt) Read more at zerohedge.com ...
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."
Talk about laying down the hammer.
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.
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.
They’re never going to get their money back from Greece, but I’m betting they’ll keep pouring money down the Greek hole.
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.
That was good for the equivalent of a -175 DJ move after hours.
Did Chelsea’s husband get the rest of his 52% out or is Billy Jo gonna have to give half a dozen speeches?
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.
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 |
President Of Euro Parliament Warns Greece Risks National Bankruptcy; Varoufakis Replies: “Greece Already Is Bankrupt”
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.
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.
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.
The only limitation I read about is that Greece may have trouble getting the right ink and paper.
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.
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.
Greece, not to big to fail.
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