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.
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?
President Of Euro Parliament Warns Greece Risks National Bankruptcy; Varoufakis Replies: “Greece Already Is Bankrupt”
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.
Greece, not to big to fail.
Last week the world woke up to the fact that Greece’s new government holds a geopolitical trump card: it can hold the EU ransom by threatening to break the fragile consensus on Russia.
The renewal of sanctions against Russia requires the unanimous support of EU members… which means Obama’s alliance against Russia needs Greek cooperation. What’s more, Greece has veto power over whether NATO can retaliate for an attack on any of its members. Article V, which states, “[A]n armed attack against one or more of them in Europe or North America shall be considered an attack against them all,” may only be invoked with unanimous agreement among NATO members.
Greece and Russia have close cultural and religious ties, and Russia is Greece’s largest trading partner. Russia’s ambassador to Athens didn’t waste any time congratulating Greece’s new prime minister, Alexis Tsipras, on his victory.
So it’s no surprise that Putin is using Greece as leverage. Russia has hinted that it will open its market to Greek food exports if Greece leaves the eurozone, and also that it would consider giving Greece financial aid. One can imagine other carrots being dangled, like an offer to hook up Greece to the Turkish Stream pipeline.
. . .
Syriza, which has close connections with Russia, admires Putin’s defiance of Western institutions. The new Greek foreign minister, Nikos Kotzias, has a relationship with Aleksandr Dugin, a Russian nationalist philosopher with close ties to Putin. As neo-eurasianists, they aim to pry a weak and divided Europe away from US influence. Syriza has openly campaigned for Greece to leave NATO, though they’ve toned down their hostility on that issue recently—presumbably to preserve it as a useful bargaining chip for the future.
Kotzias, who says he’ll work to prevent a rift between the EU and Russia, has already recognized the legitimacy of the Donetsk People’s Republic in eastern Ukraine and dismisses the Ukrainian government as a neo-Nazi junta.
. . .
The euro and the Ukraine crises are converging, and Putin is watching closely.
This is a BAD move for them. If Syriza is not bluffing, then its a Grexit. If they are, then support for them in Greece will collapse, and there is only one party remaining that the people will turn to... and something tells me that party does not bluff.