This is just total global******and the largest transfer of wealth in the history of mankind by banksters.

If things can heat up with the Syria/Iran situation t the same time Greece goes, they can do the "aw it was a perfect storm"/"aw nobody could have predicted" bit.

Gamma wrote..

a Greek default is phenomenally bullish

You may be right in the short term, especially from a sentiment point of view. But if some or all of the remaining PIIGS also default in a cascade, impressive liquidity will disappear. Sentiment won't matter much if the liquidity dries up.

Can the central banks print fast enough to keep risk assets awash in liquidity despite default of all five PIIGS?

Update from the blog...

And Dr Strangelove goes into overdrive

Just to update folks, my first source for today’s earlier posting is now happy for me to name another US bank working to the March 23rd Greek default schedule as JP Morgan. This is based on the reality that dozens of people have now come forward to confirm Morgan the Pirate as one of the recipients.

I have not as yet received any confirmation that eurobanks are in this loop. I must therefore conclude that the ‘default schema’ is US Fed-led, with Mr Timothy Geithner perhaps in a leading role

During the day, emails have dribbled in here supporting the story from a professional standpoint. (For those who don’t already know it, the email address for Slog editorial contact is jawslog@gmail.com). One such is particularly interesting, I think:

‘Congratulations on getting this out there. You need to look more closely at Deutsche [Bank] and Commerzbank. Key people in Bankfurt are fully aware of this.’

This in turn would suggest joint Washington-Berlin cooperation. At the moment, I’m unable to reach The Slog’s Bankfurt Maulwurf for confirmation or denial of that.

The likelihood, of course, is that these revelations will act as a self-denying prophecy. That is to say, if the story continues to hold up, the Troika-Berlin axis will now have to look for another schedule – purely for the purposes of denial.

Meanwhile, Wolfgang ‘Strangelove’ Schauble (top right) continues to supply the World with hard evidence that he has gone more than slightly off his trolley. The German finance minister is now pressing for Greece’s April elections to be put off for a year – and the replacement of elected politicians with more Montis and Papademoses. I can do no better than commend to you Ambrose Evans-Pritchard’s piece in the Daily Telegraph this afternoon…with this extract in particular:

‘His [Schauble's] apparent demand that Greece postpone elections scheduled for April, and impose a technocrat junta (a l’Italiana) for another year without PASOK and New Democracy, takes your breath away. Is this really the position of the German government? Greek democracy be damned?’

But while we wait to see what bonkers idea Berlin will come up with next, it is worth noting once again that the Teutonic drive for control over events does fit disturbingly well with Americo-German plans being given to senior investment bank currency traders…perhaps under the assumption (back in mid-January) that a German/EU Gauleiter/Commissioner would be in power by then.

The times may well be interesting, but they are not entirely reassuring.

http://hat4uk.wordpress.com/

Quote:

‘Congratulations on getting this out there. You need to look more closely at Deutsche [Bank] and Commerzbank. Key people in Bankfurt are fully aware of this.’

For how long have I been saying that DoucheBank would get caught in this?

I wouldn't be surprised if the Euro jumps on a Greek default, but I think people will think it means the market is cheering the improved health of the Euro when in fact it is the natural repercussions of debt destruction and repatriation. I can see the argument that Greece is nothing in itself, it is the precedent and/or next sovereign that goes boom that sets things in motion but in the last few weeks I've shifted towards thinking Greece IS a BIG deal. Bubble Mania is back, insolvency everywhere you look, huge leverage, sheeple's growing distaste for more bankster bailouts, huge unemployment rates, Japan on the edge, etc. We've got a much larger powder keg than in 2008 - 2008 was limitied just to banks and did not allow mark to unicorn. Since then banks' debt has been transfered to sovereigns and now soverigns are trying to transfer to other soveriegns without that appearing to be the case. The globe has run out of places to hide the debt so the CBs try their best with printed smoke screens.

Its all priced in :)

A Greek default destroys base money on an epic scale.

This will crash markets.

Money vanishishing into the either. Margin calls like you couldn't believe. Even gold will be sacrificed at the alter of forced margin calls.

I don't think war be coming.

People are more trouble than they are worth.

What, you're going to invade Greece and take what?

They gonna print.....

(Getting my I Told Ya So sign ready)

With the appearance of this schedule I wonder if the markets will force the timetable forward. Lehman was better kept under wraps, at least for the little people.

Notice that the debt repayment deadline is March 20th, but the story says the default will be announced on March 23rd. No wonder, March 23rd is a Friday.
They will probably announce it Friday night and the banks won't open on Monday.

Quote:

You mean the game is RIGGED. Say it ain't so.

Of course, it's not rigged......

A DMCA Approved Link


News Alert
from The Wall Street Journal


A group of traders and brokers successfully managed to manipulate an interest rate that affects loans around the world, one of the banks being investigated has told regulators.


In a court filing in Ottawa, Canada’s Competition Bureau said a bank it didn’t identify has told the agency’s investigators that people involved in the alleged scheme “were able to move” interest rates.


People familiar with the situation said the “cooperating party” is UBS.


No banks or individuals have been charged with wrongdoing.


http://online.wsj.com/article/SB10001424....

Another massive liquidity injection to conradtict yet another mushroom cloud punctuated ticker by Denniger.

He'll continue calling for the end of the world with the Dow at 1500 the 10 yr at 1.5. I admire the persistence, but he'll be proven wrong.

"Of course, it's not rigged......"

No. No, of course it's not. Because that would just be too horrible to imagine.

I've heard March 12.

The Mushroom cloud is what you see just after the rip off your face rally on rumor that the world is saved- but.... and this should not come as a secret.... the world is bankrupt.... there is not enough printing machines running at full speed in the world to fill the masive debt default deflation that is coming.... think trillions- not billions

What happens to CDS?

Why did BOA and JPM move 100 trillion in derivatives into the FDIC portion of the bank awhile back and will those funds "vaporize" after this default?

I dont know how anyone could see this as bullish for the markets all I see is total credit lockdown on the ponzi and huge asset sales to raise capital just like we saw in the crash.

There is a lot of drinking the Kool-Aid on this site. You guys haven't digested anything karl has put out there. It won't be bullish. For one, the Greek banks won't function, just like Argentina. The cross border bank lending goes up in smoke. Like Karl said, banks like Deutsche get their tit in the wringer. If this was just government debt, they would have taken enough of a hickey 2 years ago to get them back in line and gone on.

Then we got the just print guys. They just jabber, jabber and jabber. They don't know a f**king thing about money. When just print becomes inflation or it depletes the economy of its spending power, the asset inflation that comes with it at this stage, busts and all the liquidity that drove up the bubble vanishes, not because there isn't any money, but because the barn is on fire, all the horses are runnng for the door and those smart enough to stay out of the barn (I hear horses actually run into barns on fire, so don't take this literal) aren't about to run in and take the place of those inside. Thus they call those that are smart enough to stay out an illiquid market.

This whole thing is a chained group of balance sheets, which is all banking in sum is. This is what a credit crunch is. It isn't a lack of money. It is a lack of the capacity of insolvents to attract money. The entire mess has been treated as a liquidty crisis when it is a solvency crisis.

Back to money printing. When does it trigger inflation? The ECB is close to 500% GDP in total debt. Raise inflation 1% and there goes 5% of the GDP up in another 1% interest the market will enforce. But, do you really think it stops there? We have arsonists running around (the Central banks) the neighborhood buring down houses and thieves stealing cars. So, you going to park your car in the garage? You stupid enough to run around the neighborhood selling insurance? Buying any long term bonds? Going to sell at these low rates when a few more arsonists just moved into the banks? Lets say they screw the market up so bad that rates go to 3 or 4 percent higher than they are. There goes 20% of the GDP. Another row of houses burned. We still deflate, because general spending power disappears.

I wouldn't be shocked if the electrical grid didn't go down in Greece on default. Think the rest of the PIGS want to go into the dark ages? Losing the electrical grid in a modern economy is akin to an atomic blast. I read years ago that 40% of the electricty in the US goes to pump fluids. How do you put out fires? *****ing on them doesn't work once they really get started.

In closing this rant, hat tip to Mish, though I probably have this in email, by way of John Mauldin, the best economic interview I have read anywhere. Lacy Hunt gets it.

http://www.johnmauldin.com/images/upload....

ECB's Weidmann did not support the bank's decision to swap its Greek bonds for new ones to ensure it is not forced to take losses in a debt restructuring, citing unnamed ECB officials

so does this mean the 50 Billion they bought which are now worth 15 Billion? will just be swapped for 50 Billion new bonds with no loss taken? How the **** does that work, so who eats the **** sandwich, Greece?
How the **** can that be legal??

Bundesbank concerned about possible lawsuits from bond swap, according to a source

yeah like its totally ****ing criminal. I as a UK taxpayer have to pay the ****ing loss because these ****s were stupid enough to lend Greece this money...

Jubber -

How does that work? The UK is not part of the Eurozone, so why would it be liable for any ECB losses?

The UK is a member of the European Union, we pay money to it, Billions a year, 260 Billion since its inception, where does the money come from?, from out taxes.

http://www.ukipmeps.org/uploads/file/Cos....

In other scam news...this just in.

http://www.zerohedge.com/news/housing-se....

Looks like not only do they get off the hook on their mortgage FRAUD shenanigans but we also have to pay for the settlement.

Sure why not

http://www.nakedcapitalism.com/2011/12/t....

Maybe we are better off not prosecuting?

Bear with me...here's my thinking....

If we prosecute we would have to....

1.pay for their defense
2.pay any damages they might be liable for
3.serve their time in prison for them as well....

and you know its going to be one of those "dont pick up the soap" prisons if we have to do the time, not one of those country clubs they get sent to and the sentence will be long too..

We'd go broke trying to prosecute these guys and I dont want to do time for Jamie Dimon.

We will have to think of a new slogan "stop the prosecuting and.....???"

: )

Jubber -

Thanks for the eye-opening pdf file. I was generally aware of those issues, but that is not what I intended to ask. Basically, the file contains info related to costs of membership in the EU. However, to the best of my understanding, it does NOT include those costs/benefits associated with the adoption of the Euro by a subset of the EU countries which constitute the Eurozone.

The way I understand things, the ECB and its shenanigans are NOT supported by the general EU members but only by Eurozone members. That's why I was asking about how the UK has been sucked in to pay for the losses of the ECB.

Could be a leak designed to encourage more shorting. Be careful.