The big fat Greek blame game - page 4
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They were fooling everybody for 6 months, they have caused one of the biggest disaster that there was caused for one country since the WWI and now they are pulling out because "they can not help"? That is an act of lunatics that think that they can do anything they want
IMF won't fund Greece without debt relief
Some comments from an IMF officialThey look pretty much the same as we had earlier from the FT
The official has dismissed the FT story even though the FT stated that they would still be participating in talks. He/she has also pretty much given comments word for word from what Peter Spiegel wrote.
Not so much reaction in EURUSD though it remains heavy at 1.0910
Could Greek Government Collapse This Weekend?
The capitulation of Greek Prime Minister Tsipras to the demands of the official creditors has split the Syriza coalition. About a quarter of the party refused to make the apparent U-turn with the Prime Minister. Those that were part of the cabinet have been replaced. However, they retain their seats in parliament, and apparently obstructing the government's efforts.
At meeting with Syriza's central committee Thursday, Tsipras was obviously frustrated. The rebellion by the faction that we have likened to the fundis in the German Green Party, more principled than pragmatic, is yet another stumbling block in negotiations with official creditors.
Tsipras had wanted to wait until after the negotiations for a third aid package was complete but effectively leading a minority government undermines Tsipras' negotiating authority. He had initially offered a party congress in September. However, that didn't seem to appease his critics within Syriza and he has proposed a vote within the party; a referendum, if you will, on the 86-billion-euro assistance program being negotiated. If Tsipras losses the vote, snap election would seem inevitable. That said, Italy has changed prime ministers three times without a national election.
An estimated 40% of the Syriza's central committee (roughly 80 of 200 members) does not support Tsipras' concessions to the creditors. A significant number thinks that Greece should exit EMU and bring back the drachma. Tsipras argues, as we have, that as bad as the EMU might be, it would be worse outside of it. A deeper recession, higher unemployment, destruction of the banking system and a larger drop in living standards would be the likely result. It does not have the export capacity or economic structure to reap the benefits that are often thought to come from a weaker currency.
Syriza's central committee was expected to make a decision late Thursday whether to accept the fait accompli that Tsipras and his realos allies have given the fundis. Ironically if Tsipras' course is rejected, and national elections are held, Tsipras may return. He is currently the most popular politician in Greece and more popular it seems than the Syriza Party itself. In addition, the two main traditional parties are in transition themselves. The Socialists (PASOK) have just elected a new leader and the center-right New Democracy is in the middle of a leadership contest.
Solidifying his flanks and bringing the fundis to heel becomes even more important. Press reports indicate that the IMF's staff has told the board that Greece's high debt levels and weak track record of implementing reforms disqualifies it from future assistance. This should be understood as a recommendation and not the declaration of policy. That is a prerogative of the shareholders.
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Tsipras have done his job (sold his country for peanuts)
Now he can go
Tsipras Survives for Now as Party Rebels Blast Greece Rescue
Greek Prime Minister Alexis Tsipras staved off an immediate challenge to his premiership, though failure to appease his party’s hard-left fringe brought early elections into view.
After 12 hours of talks, the central committee of the anti-austerity Syriza party decided in the early hours of Friday to hold an emergency congress in September, in which Tsipras’ move to accept a strings-attached rescue program from international creditors will be put to the vote. Leaders of the party’s Left Platform protested that will be too late to stop the bailout, but failed in their bid to force a party congress this weekend.
“We opted for a difficult compromise and a recessionary program, we admit it”
With the government vulnerable, Finance Minister Euclid Tsakalotos meets representatives from international creditors on Friday to discuss the austerity measures his party has long opposed. The quarrel within Syriza, in power since January, means that Tsipras will have to rely on opposition parties’ support to approve measures attached to Greece’s emergency loans, a situation he has said isn’t sustainable.
“Tsipras might call an early election as a way to reinforce his mandate,” Roubini Global Economics analysts Brunello Rosa and Michelle Tejada wrote in a note to clients. “It cannot yet be known if a new government -- or Tsipras’s second mandate -- would lead to stronger compliance with the creditors’ terms or would merely be a sign of Tsipras’s intention to push for better terms, including debt reduction.”
source
What a big "win" : now he can drag Greece even deeper in the thing he (and his Troika buddies) brought it in
What a big "win" : now he can drag Greece even deeper in the thing he (and his Troika buddies) brought it in
they did what they wanted - the rest was a theater for us fools
they did what they wanted - the rest was a theater for us fools
Greek banks values fell today 30% (that is a limit). Tomorrow another 30% and after tomorrow, German banks are going to buy Greek Banks for 1 euro a piece - after that they don't need Greece in EU at all
Greek Banks Crash Limit Down For Second Day
After a lukewarm start by the Chinese "market", which had dropped for the past 6 out of 7 days despite ever escalating measures by Beijing to manipulate stocks higher, finally the Shanghai Composite reacted favorably to Chinese micromanagement of stock prices and closed 3.7% higher as Chinese regulators stepped up their latest measures by adjusting rules on short-selling in order to reduce trading frequency and price volatility, resulting in several large brokerages suspending short sell operations. At this pace only buy orders will soon be legal which just may send the farce of what was once a "market" limit up.
Elsewhere in Asia, equities traded mixed following a lackluster Wall Street close amid further declines in commodity prices, after Brent crude dropped below $50/bbl for the first time since January, only to rebound in overnight trade. ASX 200 (+0.3%) traded in the green with gains in financials offsetting losses seen in commodity names. Elsewhere, the Nikkei 225 closed lower by 0.1% while JGBs rose following the latest 10-yr auction which drew highest b/c since Jan with 10-yr yields at a 9-week low.
Speaking of "buy only" trading, Greece may want to consider that soon because on the second day after reopening its market for trading, Greek banks traded limit down for the second day in a row. End result: banks such as Piraeus is now down over 50% in two days.
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Greek minister signals Tsipras to call confidence vote
A Greek minister gave on Monday the strongest indication yet that the government will call a confidence vote following a rebellion among lawmakers from the ruling Syriza party over the country's new bailout deal.
Energy Minister Panos Skourletis described such a parliamentary vote as "self-evident" following Friday's rebellion when almost a third of Syriza deputies abstained or voted against the agreement.
With Syriza's left wing showing little sign of returning to the party fold, Skourletis also alluded to possible early elections should Prime Minister Alexis Tsipras lose a confidence motion. Tsipras had to rely on opposition support to get the bailout deal though parliament.
Greece's political turmoil has raised uncertainty over how the government might implement the bailout deal, which demands profound economic reform and tough austerity policies, without a workable majority.
The government has said its priority is to secure a start to funding from international creditors under the bailout programme, Greece's third in five years, so that Athens can make a 3.2 billion euro debt repayment to the European Central Bank on Thursday.
However, asked on Skai television about the possibility of a parliamentary confidence vote after this, Skourletis said: "I consider it self-evident after the deep wound in Syriza's parliamentary group for there to be such a move."
Tsipras has said he will call a Syriza congress after the summer to iron out the party's differences. But Skourletis raised the possibility of early polls should Tsipras fail in a confidence vote.
"If we go to elections soon, in three or four weeks if this option is chosen, obviously a party congress cannot be fruitful," he said.
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