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Oh Oh - Greece Going Supercritical
The Market Ticker ^ | April 7, 2010 | Karl Denninger

Posted on 04/07/2010 9:11:57 AM PDT by Cheap_Hessian

I told you so.....

According to information Commerzbank was concerned about the Greek bonds accepted as guarantees of Greek bonds. Commerzbank has provided some liquidity to Greek banks are more concerned about the Greek bonds. Based on a reliable source in the recent past, foreign banks have applied to withdraw repo with Greek banks even offer powerful bonus.

(Hattip Zerohedge)

If repos are being yanked from Greek banks they're finished. This is the overnight lending market and that, coupled with depositor runs (which, as soon as Greeks figure this out, will accelerate dramatically) will drive a stake through the heart of these institutions.

The simple fact of the matter is that Greece, like Lehman and Bear, came out into the market and lied about both their position and ability to manage what was going on.

(Excerpt) Read more at market-ticker.denninger.net ...


TOPICS: Business/Economy
KEYWORDS: bonds; denninger; economy; greece; risk; ticker
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1 posted on 04/07/2010 9:11:57 AM PDT by Cheap_Hessian
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To: Cheap_Hessian

Ruh roh...


2 posted on 04/07/2010 9:18:05 AM PDT by Noumenon ("Upon what meat doth this our Caesar feed, that he has grown so great?" - Julius Caesar)
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To: Noumenon

Looks like the PPT is working overtime today.


3 posted on 04/07/2010 9:25:23 AM PDT by RobRoy (qu)
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To: Cheap_Hessian

If we don’t have enough trillions, we’ll have to go to our fallback position of talking of quadrillions.


4 posted on 04/07/2010 9:31:53 AM PDT by ClearCase_guy (We're all heading for red revolution -- we just disagree on what the red really means.)
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To: Cheap_Hessian

Socialism BUMP.
This is exactly where the Kenyan communist Ubama wants to take America, all in the name of “reparations” and “social justice”. Wow... What a sick scumbag that guy is.


5 posted on 04/07/2010 9:32:57 AM PDT by Lancey Howard
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To: Cheap_Hessian
Based on a reliable source in the recent past, foreign banks have applied to withdraw repo with Greek banks even offer powerful bonus.

Google doesn't have a Bankerese-to-English translation. Does anyone have a good website that can tell me what this means?

6 posted on 04/07/2010 9:33:46 AM PDT by KarlInOhio (Obamacare: The 2010 version of the Intolerable Acts.)
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To: ClearCase_guy

May as well use the catch-all “bajillions”.


7 posted on 04/07/2010 9:34:07 AM PDT by Lancey Howard
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To: KarlInOhio

I think it means foreign banks now thing Greece’s debt is “unsafe at any price”


8 posted on 04/07/2010 9:36:44 AM PDT by NeoCaveman ("workers of the world unite, it's not just a slogan anymore" SEIU's Andy Stern)
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To: KarlInOhio

Wikipedia’s got one.

http://en.wikipedia.org/wiki/Repos

I couldn’t follow it either. It looks to be a scam in which desperate borrowers manage to borrow without it showing up on the books anywhere.

In this case, it appears the “foreign banks” have decided they don’t want to play that game anymore.


9 posted on 04/07/2010 9:37:56 AM PDT by DuncanWaring (The Lord uses the good ones; the bad ones use the Lord.)
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To: Cheap_Hessian

Hummmm, you mean the VAT(value added Tax) didn’t work????


10 posted on 04/07/2010 9:40:19 AM PDT by Marty62 (marty60)
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To: Cheap_Hessian
The Greeks: They led the way at the inception of Western Civilization, and now leading the way on the downfall.


11 posted on 04/07/2010 9:49:40 AM PDT by Plutarch
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To: NeoCaveman
Would I be correct in saying that if Greece says "We cannot pay", then they would be said to be "in default"?

And what we have here is tantamount to the foreign banks saying "We've just figured out that you couldn't pay us if you tried"?

12 posted on 04/07/2010 9:54:57 AM PDT by ClearCase_guy (We're all heading for red revolution -- we just disagree on what the red really means.)
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To: ClearCase_guy

I think so.


13 posted on 04/07/2010 10:00:35 AM PDT by NeoCaveman ("workers of the world unite, it's not just a slogan anymore" SEIU's Andy Stern)
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To: NeoCaveman

Dontacha know that Germans were nazis 70 years ago?? That’s what screwed the hardworking Greeks... /s


14 posted on 04/07/2010 11:37:50 AM PDT by mainsail that
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To: Cheap_Hessian

Maybe,just maybe,its a good thing if Greece is beaten to an economic pulp? Maybe thats the only way to correct the impalances in the labor force? Perhaps it will be a great lesson for the rest of the world as in nobody wants to be the next Greece? Just saying,its not a huge economy and if you wanted to pick a country to try and correct the wrongs Greece would be right around the top of the list.


15 posted on 04/07/2010 12:41:24 PM PDT by wiggen (Government owned slave.)
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To: wiggen

That’s why, IMO, Germany etc will let Greece go bankrupt and SUFFER, to send a clear message (about spending, debts and telling the truth) to others


16 posted on 04/07/2010 4:41:47 PM PDT by mainsail that
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To: Lancey Howard
I get confused... is that more or less than a gazillion?
17 posted on 04/09/2010 12:59:56 PM PDT by April Lexington (Study the constitution so you know what they are taking away!)
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To: Plutarch

If my college Greek serves me correctly... that sign says...’Hope & Change!”


18 posted on 04/09/2010 1:00:54 PM PDT by April Lexington (Study the constitution so you know what they are taking away!)
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To: April Lexington

Not to worry until the Greek people figure out that their country is in trouble, when they start a run on the banks look out. Kati Bar the Door.


19 posted on 04/09/2010 1:08:52 PM PDT by BooBoo1000 (Vote for Pedro)
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To: All

Oh no, where will I get all those great Greek.....um, well made...er high tech...ah...


20 posted on 04/09/2010 1:11:14 PM PDT by riri (III)
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