In Big Boost To "No" Vote, Schauble Hints Greece Can Default And Stay In Euro

Submitted by Tyler Durden on 06/30/2015 08:14 -0400

• default
 
• European Central Bank
 
• Greece

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In what appears to be some level of German backing down, fiery FinMin Schaeuble has, reportedly said the following:

• SCHAEUBLE SAID TO SAY GREECE MAY BE ABLE TO TAP EU SUPPORT FUND
• SCHAEUBLE SAID TO SEE GREECE STAYING IN EURO EVEN IF 'NO' VOTE

More from Bloomberg:

German Finance Minister Wolfgang Schaeuble told lawmakers in Berlin that Greece would stay in the euro for the time being if Greek voters reject austerity in a referendum scheduled this week, according to three people present.

Schaeuble also said the European Central Bank would do what’s needed to protect the euro if Greeks voted against the bailout terms in the July 5 referendum, according to the people, all of whom participated in the closed-door meeting on Tuesday. They asked not to be identified, citing the private nature of the discussion.

The German Finance Ministry declined to comment.

Which incidentally, is good news for Tsirpas as it spurs the probability of a consequence-less "no" vote on Sunday enabling the increased negotiating position that The Greek government had hoped for. Of course, with month-end looming and a market that just gave up all 2015 gains, stocks and EUR are rallying on this and bonds are selling off, if only until the next rumor, and then the next, until we finally get clarity at 5pm Eastern when the news of whether Greece defaulted to the IMF or not hits, and is therefore officially out of its bailout program.

Romîna -- NEGOCIERI ÎN PARALEL USA-IRAN Exclusiv: Proiectele secrete ale Irael-ului si al Arabiei Saudite de Thierry Meyssan

NEGOCIERI ÎN PARALEL USA-IRAN

Exclusiv: Proiectele secrete ale Irael-ului si al Arabiei Saudite

de Thierry Meyssan

Raspunsul Tel-Aviv-ului si al Riyad-ului la negocierile între Statele Unite si Iran, se situeaza în prelungirea finantarii razboiului împotriva Gazei în 2008 de catre  Arabia Saudita: alianta unui Stat colonial si al unei monarhii obscurantiste. În timp ce Orientul-Mijlociu se pregateste sa traiasca o schimbare pentru zece ani ale regulilor jocului sau. Thierry Meyssan dezvaluie aici negocierile secrete între Tel-Aviv si Riyad.

RÉSEAU VOLTAIRE | DAMAS (SYRIE) | 22 JUIN 2015 

ESPAÑOL  РУССКИЙ  فارسى  ITALIANO  DEUTSCH  PORTUGUÊS  ENGLISH 

Nimeni în Orientul Mijlociu este constient de faptul ca acordurile secrete care vor trebui sa fie semnate pe 30 iunie viitor – la marginea acordului multilateral privind nuclearul – de catre Washington si Teheran, vor fixa probabil regulile jocului pentru viitorii zece ani.

Aceste acorduri intervin în timp ce Statele Unite au devenit primul producator mondial de petrol, înaintea Arabiei Saudite si a Rusiei. Deci ei nu au nevoie pentru ei însisi de petrolul Orientului-Mijolciu, si nu sunt interesati decît sa mentina piata mondiala în dolari.

A Wall Street Crash Course: How To Sell $1 For $100 by Tyler Durden

A Wall Street Crash Course: How To Sell $1 For $100

Submitted by Tyler Durden on 06/29/2015 18:00 -0400

• Bond
 
• CDS
 
• Goldman Sachs
 
• goldman sachs
 
• John Paulson
 
• Quantitative Easing

 

Submitted by Daniel Drew via Dark-Bid.com,

On Wall Street, a vital skill is the ability to sell something that you know is completely worthless. Goldman Sachs did it when it sold ABACUS 2007-AC1 to investors while hedge fund manager John Paulson was betting against it. Paulson paid Goldman $15 million to peddle this junk, which was a collateralized debt obligation that would make money when millions of people lost their homes. The SEC charged Goldman with fraud, and they eventually settled for $550 million. If you're an enterprising Wall Streeter who wants to make a name for himself without breaking the rules, you can operate a tantalizing scheme that investors can't resist. It's called Shubik's Dollar Auction.

The Dollar Auction was created in 1971 by Martin Shubik, a professor at Yale. Shubik was friends with the late game theorist John Nash, and in their spare time, they amused themselves by creating parlor games that were nothing less than diabolical. Wall Streeters are usually familiar with traditional risky games like No Limit Texas Hold'em andLiar's Poker. However, the Dollar Auction trumps all of those games by taking loss aversion to the next level.

The Dollar Auction works like any other auction except for one key rule: the second-highest bidder has to pay his bid in full and gets nothing in return. Experienced traders will immediately foresee how this will play out. Gather a large group of people in a room and start the bidding. Initially excited by the prospect of getting a dollar for pennies, people will start bidding. Even at 50 cents, they are still getting a bargain. No one worries about being the second-highest bidder because there are so many other people in the room.

Greece Threatens 'Unprecedented' Injunction Against EU To Block Grexit by Tyler Durden

Greece Threatens 'Unprecedented' Injunction Against EU To Block Grexit

Submitted by Tyler Durden on 06/29/2015 18:07 -0400

 

Having told the citizens of Greece that the European leaders will not kick them out of Europe because "the cost of throwing them out is too high, enormous," it appears Greek PM Tspiras has another plan to ensure - no matter what the outcome of the forthcoming referendum - that there is no actual Grexit. As The Telegraph reports,Greece has threatened to seek a court injunction against the EU institutions, saying "we are taking advice and will certainly consider an injunction at the European Court of Justice. The EU treaties make no provision for euro exit and we refuse to accept it. Our membership is not negotiable."

Speaking earlier Tsipras stated:

• *TSIPRAS: REFERENDUM PROVIDES STRONGER NEGOTIATING POSITION
• *TSIPRAS: CREDITORS’ PLAN IS NOT TO THROW COUNTRY OUT OF EURO
• *TSIPRAS: COST OF THROWING COUNTRY OUT OF EURO AREA IS ENORMOUS
• *TSIPRAS: GREECE WILL NOT BE THROWN OUT OF EURO, COST TOO GREAT

And now, as The Telegraph reports, Plan B is in place...

Greece has threatened to seek a court injunction against the EU institutions, both to block the country's expulsion from the euro and to halt asphyxiation of the banking system.

“The Greek government will make use of all our legal rights,” said the finance minister, Yanis Varoufakis.

“We are taking advice and will certainly consider an injunction at the European Court of Justice. The EU treaties make no provision for euro exit and we refuse to accept it. Our membership is not negotiable,“ he told the Telegraph.

The defiant stand came as Europe’s major powers warned in the bluntest terms that Greece will be forced out of monetary union if voters reject austerity demands in a shock referendum on Sunday.

Any request for an injunction against EU bodies at the European Court would be an unprecedented development, further complicating the crisis.

*  *  *

With JC Juncker lies and propaganda this morning, Tsipras main goal now is to keep anarchy from breaking out before the potential vote on Sunday.

Greece... Mattered: Surveying The Carnage by TYLER DURDEN

Greece... Mattered: Surveying The Carnage

Submitted by Tyler Durden on 06/29/2015 16:02 -0400

• Bitcoin
 
• China
 
• Copper
 
• Crude
 
• Greece
 
• Japan
 
• Nikkei
 
• Puerto Rico
 
• Swiss National Bank
 
• Twitter
 
• Twitter

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Greece... mattered!!

The market be like...

*  *  *

It began as FX markets opened ugly in early Asian trading, but once stock markets started to open, the focus shifted there...

Japan spanked... Nikkei 225 down 730 points from Friday's close...

China collapsed...

When Europe opened it was ugly in stocks...

"Of  What Use Is A Gun With No Bullets?", BIS Says Central Banks Defenseless Against Coming Crisis

Submitted by Tyler Durden on 06/29/2015 14:33 -0400

• Apple
 
• BIS
 
• Central Banks
 
• Global Economy
 
• Monetary Policy
 
• Prudential
 
• Recession
 
• Reserve Currency

i

If you know anything about the history of the BIS, you know that the bank’s latest annual report is glaringly ironic and somewhat hypocritical. The “bank for central banks” as the highly profitable institution is known, has for decades served as a secretive club for the world’s most influential central bankers. The lavish governors’ weekends hosted by the bank in Basel allow the world’s most powerful monetary policy mavens to discuss the most important issues facing the global financial system in complete privacy with no fear that anything will leak to the public or to the press.

In other words, the BIS serves to encourage and perpetuate the power and prestige of the world’s central bankers and provides a top secret forum for the monetary policy cabal to meet and commiserate safe at all times from the prying eyes of those to whom the bankers should by all rights be accountable. 

In this context it’s somewhat absurd that the bank’s annual report — which, as a reminder, is required reading in treasury departments and monetary policy circles around the globe — contains a scathing critique of the very same policies which were no doubt devised, tweaked, and honed over dinner and fine wine in Basel. Nevertheless, the BIS’ latest tome is replete with criticism for the idea that the very people who make up the bank’s Board of Governors are indeed omnipotent. 

*  *  *

Excerpted from the BIS Annual Report

Policies have been unable to constrain the build-up and collapse of damaging financial booms, ie the global economy exhibits “excess financial elasticity” – think of an elastic band that can be stretched out further and further until, eventually, it snaps back more painfully. 

The interaction of monetary regimes has spread the easing bias from the core economies to the rest of the world. This happens directly, because key international currencies – above all, the US dollar – are extensively used outside the issuing country’s borders. Thus, the core countries’ monetary policies directly influence financial conditions elsewhere. More importantly, an indirect effect works through the aversion of policymakers to unwelcome exchange rate appreciation.

Massive Greek "No" Protest In Front Of Parliament - Live Feed

Submitted by Tyler Durden on 06/29/2015 14:06 -0400

• Creditors
 
• default
 
• Germany
 
• Greece
 
• None

"To stay or not to stay," that is the question for Greeks ahead of Tuesday's default to the IMF and a historic referendum set for this coming weekend. 

With the ATMs running dry and lines forming at gas stations and grocery stores, Greeks are understandably restless and have once again gathered en masse in Syntagma Square. 

(Live feed)

As a refresher, this is where things stand:

Earlier today, as the exchange between Greece and its creditors got increasingly belligerent, Estonian Prime Minister Taavi Roivas told public broadcaster Eesti Rahvusringhaaling in interview that a possible Greek decision to leave euro area wouldn’t soften stance of other EU countries and that Greece’s debt would still remain outstanding and creditors would expect this money back."

"If Greece leaves, the value of their new national currency would decline very fast, so their solvency would still worsen further. They will either have to cut spending or improve their tax revenues. There are no other options."

So did this latest antagonism change the Greek mind? According to a flash headline by the WSJ released moments ago, not all. In fact, Greece just made it official that it would default to the IMF in just over 24 hours.