BREAKING….as IIF & majors bondholding revealed to be a miserable 20%, Greek finance ministry stuns world with details of German banker meeting.


Question must be asked: is this an anti-ECB power play by Bankfurt?

(Updated 17.45 GMT)

At 15.18 GMT today (Tuesday), text of minutes relating to a meeting with senior Frankfurt bankers was released by the Greek Finance Ministry. Complicated, but potentially sensational, the text  (my highlights +emphasis) includes this extract:

The Republic’s representative noted that Greece’s economic programme does not contemplate the availability of funds to make payments to private sector creditors that decline to participate in PSI. Finally, the Republic’s representative noted that if PSI is not successfully completed, the official sector will not finance Greece’s economic programme and Greece will need to restructure its debt (including guaranteed bonds governed by Greek law) on different terms that will not include co-financing, the delivery of EFSF notes, GDP-linked securities or the submission to English law...’

This clearly gives the sense of German bankers declaring that IF THE ACCEPTANCE LEVEL FALLS BELOW 66%, it will be deemed to be, not just a failure, but that it’s the end of the road for bailout. I have to assume that ‘official sector’ means all central banks and sovereign holders. Why the reminder about this now, if everything is tickerty-boo?

One is left wondering why the meeting with Bankfurters took place at all. Given the evidence from Der Spiegel this morning that a full-scale battle is now on about the German bankers and Draghi’s ECB, The Slog also finds it difficult NOT to see this as a Bundesbank power-play.

I have to wonder why the Greeks released the minutes at this particularly sensitive moment. Presumably, they wanted to make it clear to the Hedge Funds that holding out would get them nowhere. In the time since then, the FT has also quoted ‘a person close to the deal’ saying that Hedge Funds “…need to realise that they don’t have a free option here.”  I am bound to observe that, at this stage of the game, that strikes me as a naive observation: the Hedgies know exactly what they’re doing – and the IIF plus Athens are engaged in obvious dissembling about what proportion of the bondholder universe has accepted.

In reply to a confused Slogger via email, I sent this about 90 minutes ago:

‘Sometimes one has to trust one’s own instincts. Note that:
1. The Telegraph includes the German banker info, the Grauniad doesn’t.
2. Bloomberg & Zero Hedge both agree IIF holding is only 20%.
3. Dow Jones ‘crunched numbers’ to get to 75-80% take-up. How did they do that? They don’t know HF levels any better than I do.
4. 66% is the level at which they CAN’T use CACs. I need to dig in Frankfurt, but my gut feeling is that this is what the Bankfurters were saying to them…you’re not gonna get 66%, that would be an incomplete deal, and we will pull the plug.
5. I’m the only one saying this. Joking apart, 9/10 occasions that is usually a sure sign I’m right.
6. My wealth managers agree.
7. The markets are anticipating it.’

Major stock  markets and banking sectors in France, the UK and Germany did in fact fall badly this afternoon, so I have to assume that they see things in a similar light. The CAC 40 in Paris has now fallen 3%. French banks are leading the falls. Credit Agricole is down 6.3%, Societe Generale has plunged 6%, as has  BNP Paribas. In Germany, Commerzbank is the biggest loser, down 6.5% at €1.776.

I contacted a respected UK wealth management company late this pm, and they too concurred that a serious default (of the type mentioned in the Greek Finance Ministry release) is now much more likely.

So: same old same old sign-off line: this deal will not make it to the tape.

Related: The creeping Nazification of the European Union

116 thoughts on “BREAKING….as IIF & majors bondholding revealed to be a miserable 20%, Greek finance ministry stuns world with details of German banker meeting.

  1. I work for one of the big three worldwide consultancies. Our CEO was in town and spoke for an hour to the staff several weeks. Among his remarks: in connection with his recent trip to Davos, he mentioned off-handedly that Greece would be out of the Eurozone by 2nd quarter or 3rd quarter at the latest. He said this casually, as if that hash had already been settled, and moved on to other topics.


  2. Been away for a couple of days – and managed to crash our car for the THIRD time in a year (dont blame me, my husband is the driver!). My point is….. could someone wake me up when this is all over, because it is becoming REALLY boring! It is like a horror film where the baddy refuses to die, and keeps on and on and on and on coming back to life.
    Just GET ON WITH IT, already!


  3. Currently stuck in Brussels, and just returned from cash machine at BNP. Reading John’s piece, I may return tomorrow for a little more physical to see me over once that cash machine stops working come Thursday.

    I’m not forgetting the expected March 23rd default notification, John, but you know how things can escalate at a far quicker pace than anticipated.


  4. The ISDA bankers will never announce a derivatives default NEVER. No Greek deal, than democracy and freedom come under threat worldwide. Just wait and see how the commercial powers behind their puppets take power?


  5. SM
    No, amount OWNED by IIF et al is 20%. Zero and Bloomb have that.
    That much I was tipped off about 6 am this morning.
    Stock market FTSE fell 100 pts last 10 minutes. Exposure of RBS a real issue.


  6. Guardian financial crisis blog states the following:
    2.52 pm section……………..
    2) Reporters at Dow Jones newswires have crunched the PSI numbers and concluded that the take-up rate in the PSI will come in between 75% to 80%. So, below the 90% level that would mean the CACs wouldn’t be needed, but above the 66% mark below which the CACs couldn’t legally be triggered”.


  7. How do “reporters at Dow Jones newswires” have the remotest idea who has what bonds? Or do they mean 75-80% of the ones they know about?


  8. Oh and just where does this leave the ‘Gnomes of Zurich’?

    Switzerland, who as Orson Welles pointed out, invented the ‘Cuckoo clock’…

    As I can’t see them suffering…


  9. Since this has been on the cards for months I fail to see why it has come as a shock to the markets. Greece’s departure from the eurozone will be their salvation, look at Iceland. The rest of the PIS, note the missing ‘G’ will marvel at a Greek recovery over two years or so and also quit, if not before. Germany will realise how much they will have lost to all this and declare war on France! France will beg us for Spitfires, (sterling) to prop up the new francs and off we go again!


  10. Panic not,this is the beginning of a new bull market in equities,as the artificial restrictions of a single currency that stifle economic activity,are replaced by the ‘invisible hand’ of Adam Smith.An added bonus would be the final destruction of Scotland as a financial centre.


  11. JW in greece media speculate :
    a) IIF has 45billions bonds
    b) greek insurance institutions and banks have 24 billions bonds
    c) last minute meeting takes place right now between Venizelos & main bankers due to the need of using in PSI bonds which have originally been excluded in value of 8 billions

    serious websites talk about the case of 67 to 75 % participation


  12. It will be interesting to see how Asian markets respond when they open, and Europe tomorrow.
    Wonder who will “Save The World” tomorrow, Super Mario?


  13. Pingback: Breaking: Markets in Freefall As Berlin Appear to Pull Plug on Greek Debt Restructure

  14. william, you’re playing it too close to your chest again. Some of us in the cheaper seats can’t see properly..


  15. Pingback: EUR/USD Marching South on Growing Worries About Greek PSI | Forex Crunch

  16. I dont have much to say…BUT

    They have much to say:
    A. IIF

    B. Moodys



  17. BT …. old news just trotted out by TPTB….again
    A few points:
    1) The current daily chart for front month brent is forming an excellent double top, head and shoulders. The short 8/13day MACD has turned negative 3-4 days ago and the long 13/34day macd is turning negative today.
    Technically we are looking at a drop to the “shoulder” at around $118 and then on down to the bottom at $110.

    2) the refineries are not making any money … they can`t sell the products – jet, distillates, gasoline etc at a profit….. I have to assume because demand erosion is kicking in everytime they try and raise prices

    3) the report is probably about right.

    So, everything is pointing to crude going down in the short term, except ….. the msm continues to trot out every other day old hat stories about peak oil, plateau oil, how Iran can close the straits, etc etc…..
    even today i think I saw the US secretary of defense saying they would go to war before allowing Iran to have nuclear weapons.
    We know that.
    But trotting it out again makes it seems like new news and the market is supposed to act accordingly, i.e rally.

    What I`m getting at is that somebody somewhere does not want the oil price to go down. When it looks like it`s going to then along comes the MSM with re-run scare stories to try and hold it up.
    One thing we never see in the MSM is stories of demand erosion or what will happen when the economy goes into freefall. Bear in mind that after Lehman we went from $147 or so in July`08 to $36 in Dec`08. This is what could well happen again, just the MSM seem to have no interest at all in discussing this possibility…..


  18. Well broken JW. If it’s a conspiracy, it’s not a very good one! This is what we find..(the hope that springs eternal, springs right up your behind..)


  19. I think people are lost in translation.

    Its called PSI! Private sector! When they count the percent of participation they mean of the PRIVATE sector owners. Not ECB or bailout loans.

    Greek banks alone own 40% of the private part !


  20. @Hieronimusb,in the stalls,we have guaranteed and rising inflation, courtesy of MarK,so to protect your savings,rather than buy the oils and pharma, you grant puts at the market price(socially,about as useful as a wind farm,but 10-15 percent per annum up front is a good advance payment against ‘ the Mansion tax ‘)and then we shall see.


  21. Try singing this; the first two lines of the second verse are the killer..
    There may be trouble ahead
    But while there’s moonlight and music
    And love and romance
    Let’s face the music and dance

    Before the fiddlers have fled
    Before they ask us to pay the bill
    And while we still
    Have the chance
    Let’s face the music and dance

    We’ll be without the moon
    Humming a diff’rent tune
    And then

    There may be teardrops to shed
    So while there’s moonlight and music
    And love and romance
    Let’s face the music and dance
    Let’s face the music and dance


  22. so nobody really knows what is going on right now, except for a few insiders!

    the answer can be given by the one to solve the riddle = Do they really mean business when they say that they intend to go to elections in Greece later in April ? if Yes, then the PSI will make it through because they need something to invest on communication wise !


  23. Pingback: John Ward – BREAKING….As Bondholder Acceptance Revealed To Be A Miserable 20%, Greek Finance Ministry Stuns World With Details Of German Banker Meeting – 6 March 2012 | Lucas 2012 Infos

  24. But william, I’m too scared. When I was little my mother paid a young girl to take me out in a perambulator. I’ve been pushed for money ever since. (Chic Murray)

    Seriously, I’ve got two modest pensions maturing on 28th March so I’m a bit tired of the blindly ongoing laughable leveraging of can kicking sovereigns..


  25. @Kb;
    Good man. But, at the present moment in time anything is possible so, I would not back you nor bet against you.
    Now, I think I have a nice Shiraz somewhere….


  26. Another cliff hanger, staring into the abyss, on the edge, on the verge of..and so on ad infinitum…this could run and run…
    Maybe I should put some money on Kennyboy after all….


  27. Everyone…see 18.45 update..but basically, whatever the uptake percentage, the disinformation level is edging 100%.


  28. KR
    Key word in your thread is ‘speculate’. Everyone is speculating.
    I was told by a Hedgie spokesman last week, “We only have 10% of all Greek bonds”.
    But then a Swiss credit supplier told me the level was 50%.
    Who do we believe?
    It’s a den of snakes, scorpions, sharks, and other nasty words beginning with s.


  29. And can someone answer two questions for me?

    1) If PSI acceptance is BELOW 66%, that’s a deal breaker, correct? Or have I got that wrong?

    2) If acceptance is above 66%, but below 75%, the Greek Government can and probably will activate CAC’s, to compel remaining withholding bond holders to partake in the overall deal, but CAC’s, by fact of them being imposed on the bondholders, will, or at least should, then be seen as a credit event/default? Is that correct?

    What if acceptance is above 75%? What happens then?

    Apologies, but this is all very confusing to a non financial soul like myself.


  30. All this is very predictable. The notion that bondholders should take a hit for Greek overspending and extravagance is appalling. I am surprised that the voluntary take was as much as %20 [if true]. In cases like this it may be that there was some kind of compensation offered under the table and in an oblique direction so as to escape notice.

    All the EU is Big Nanny State government, massive spending programs, rules, regs and a penchant for using conjured political schemes like Global Warming to grab and grunt for more and more taxes.

    What happens now will be the scenario for the rest of the PIIS as they collapse too.


  31. CACs will be activated on anything below 90%
    Problem is that if not, Greece will need to pay them from their own non-existent budget. They will only let very few slip through the net.
    But my (speculative) info is that it goes well with expected participation 75-85%


  32. It’ll be on a Friday.
    Sh** always hits the fan on a Friday.
    23rd March is a Friday, but there is also the 9th and the 16th before that.
    As for June. I can’t see the people of Greece, Portugal, Spain or anywhere else putting up with this for very much longer.
    It’s the last straw that breaks the camel’s back.
    By the way, where’s the ‘Real Gemz’ just when she’s needed?


  33. I think they released it by accident. If you look at the document, although it is headed “Press Release”, it is actually addressed to bond-holders, with a fairly clear threat that they will face legal action if they leak it to anyone else.

    So a Greek own goal rather than German conspiracy (even if it serves the latter vaery well).


  34. D Tel blog on financial crisis details RBS report/prediction re debt swaps situation and PSI participation. See the three postings starting from 16.09 pm:
    Includes following info: Greece’s debt still projected to be 160% in 2020. Third bailoutwill be needed.
    RBS gives estimate of debt swap participation rate.
    “RBS believes collective action clauses will have to be exercised in order to bring participation close to the targeted €107bn. However, RBS says this still won’t be enough”


  35. Caught up with you at last.Let’s face the music,no, the world is not coming to an end,the Slog will continue ,ad infinitum,they are ALL bust,those funny countries,it’s coming here next,28 March you grant 12 month puts at the money in the usual suspects,I am off to Eastern Anatolia to see the world’s oldest archaelogical site,9,500 BC Gobekli Tepe…


  36. This would be a good outcome for Greek citizens and other EZ citizens alike. I won’t believe it until I see it, however. There’s got to be a double-secret can kicking scheme that will be revealed at the eleventh hour. How else will the market continue going up?

    John, I really appreciate all of your insights. It’s amazing what one intelligent, well-connected person can put together. I’m not exaggerating when I say that I get more from your site than from the WSJ, NYTimes, and FT combined.


  37. Thanks for that. I should have read the report before posting a Link to it!

    I read the other day that governments/banks/et al have abandoned free market economics. Everything is being manipulated…including oil price.
    MSM is the mouthpiece as usual.


  38. I wonder if that’s what Cameron the crusader had in mind when he decided to use state sponsored assassination to remove gadaffi!?

    Those Arabs and their oil, they rarely do what their colonial masters want them to do they??


  39. The way i see understand it is that the actual required participation threshold is just 33% of the Greek-law governed bonds which there total face value is 177b.

    “…Under the collective action procedures introduced by the Greek Bondholder Act, the proposed amendments will become binding on the holders of all the Republic’s Greek-law governed bonds issued prior to 31 December 2011 identified in the act of the Ministerial Council approving the PSI invitations, if at least two thirds (66%) by face amount of a quorum of these bonds, voting collectively without distinction by series, approve the proposed amendments. One half (50%) by face amount of all the Republic’s bonds subject to the collective action procedures will constitute a quorum for these purposes…”

    So, if 66% of the 50% of the 177b give consent and the CAC’s can be triggered and then 86% of the total 206 will be force to participate. It is very difficult that this thing will fail. Maybe i am missing something but i don’t think so…


  40. Even if it succeeds, give it 7-10 days afterwards and it will once again be the emperors new clothes.

    America and Germany want it to fail, one way or the other they will get their wish.


  41. That’s better Chris! I’m still chuckling deeply at your mind picture of Merkela doing the dance of the seven army surplus blankets for Wen some weeks ago. It was the inspiration for my (SUNday) headline Merkel’s Merkin Found In Beijing (not in the least funny if you don’t know what a merkin is..)


  42. Pingback: John Ward – UPDATED: BREAKING….As IIF & Majors Bondholding Revealed To Be A Miserable 20%, Greek Finance Ministry Stuns World With Details Of German Banker Meeting – 6 March 2012 | Lucas 2012 Infos

  43. A little story : few years ago when my daughter was small and we were living in Hong Kong , they had an art show at her preschool , where my little girl’s impressive painting was under a lot of discussion as was a picture of HK with heavy black/grey clouds allover , intelligent parents and teachers were talking about the bad air in HK , pollution problems , the air our kids breath , how aware they are of it and so on , then they asked her about it .” i only had black paint left ” she replied .How is this related to the greek crisis? lots of intelligent people here try to figure out what is going on , what the greeks are doing , if papers were leaked by mistake , what they know and they dont tell …..I believe they dont know what they are doing .If any of you knew how the greek politico has been muted after 20-30 years of corruption , inaction , stupidity , lies , mafia style politics and economics then you will know that as we say in greece ‘ they can not split the hay for two donkeys ” ,What ever that is that the Europeans or the whole world for this matter expects them to do , they will not .They have no idea how to do it .So please seat deeply and enjoy this . Will be highly entertaining !
    ( and yes as a greek i am sorry about this more than you can ever imagine )


  44. Two recent examples :
    1. Bloomberg : Goldman secret Greece loan
    ‘Very Bad Bet’
    Sardelis said he realized three months after the deal was signed that it was more complex than he appreciated.
    2. Greek minister Chrisohoidis admitted few weeks ago that ” he had no time to read the bail out agreement that he signed ”
    Go figure


  45. Nope, only 12 now. Which makes the Irish referendum irrelevant.
    No organisation in the world has ever been so incompetent as the EU – and yet so adept at sidestepping democracy at the same time.
    Just goes to show what you can do when you try.


  46. The Greeks are threatening the hold outs which means they are panicking. The next step is a delay of the bond swap followed by a desperate second attempt to pull it together. I’m thinking they will find some way to push the deal to Friday if they don’t get the required participation by Thursday.


  47. these market gyrations are more to do with other things recently of a geopolitical nature than the Greek situation, imho.


  48. Mr. Ward: I’ve just learned about this website and am trying to get up to speed asap re the article you posted on Feb. 16 titled “Greek Default Exclusive: Senior US Bankers Given Explicit TimeTable for Athens Default”.

    Are you of the opinion that it’s still on for March 23rd or have things changed?



  49. Pingback: 3612 Gleaning | The Truth is Not a Choice

  50. ISIN GR bonds are 177billion. Do your calculations on that total.

    They need 66% of that to activate the CACs. Only Greek Banks own 40% of that.

    These are official numbers not speculator numbers from anonymous blogs.

    If you want to publish a serious article make some research first.

    Are you so desperate to prove your article about March 23rd correct?


  51. Surely the whole point of the “hedgies” is to force a default and collect on the insurance. They are therefore bound to participate in and vote against the deal to ensure the default they want. The 50% quorum should not therefore enter into it. The way I see it, if the IIF have 20% and the Greek banks have 40%, they are 7% short of the votes needed. Who has the other 40%, presumably the hedgies and they could conceivably succeed as JW is sure they will. There will be a lot of arm twisting, threats and blackmail to get that final 6.71%.


  52. What do you expect from the public sector (always take take take with no thought as to where the money comes from).

    My take on this is if Greece defaults (or even if this restructure goes through) they have basically stolen in excess of €100Bn from the rest of Europe and the world (via pension funds, impact to banks, IMF payments, etc).

    I’ll never set foot in the place again



    Confidential Letter of Georgiou – Head of Greek Stats Agency – To Paul Thomsen-imf 16 October 2010




  54. Commerzbank has reported a loss for the July-to-September quarter after taking further writedowns on Greek debt.

    Germany’s second largest bank reported a third-quarter net loss of 687m euros ($949m, £593m), compared with a 113m-euro profit a year ago.

    The bank – which is 25%-owned by the German government – took a 798m-euro hit on its Greek assets.

    France’s biggest bank BNP Paribas revealed a 72% drop in profits, to to 541m euros, after cutting its exposure to sovereign debt.

    Franco-Belgian bank Dexia and US broker MF Global have both collapsed in the past month due to exposure to the crisis.

    Greece is the spark
    Does Europe really need to fear a Greek default? From an isolated non-Greek perspective, not really since the total exposure to Greece is limited in a pan-European perspective. Greece is expected to default, either in an orderly fashion or in chaos. The largest risks lie within the system-critical banks which hold additional PIIGS debt, excluding Greece. BNP Paribas has an additional Euro 32bn in non-Greek PIIGS sovereign debt exposure and the corresponding number for Commerzbank is Euro 14bn.

    Italy is the key
    The largest risk by far is in Italian government debt. Earlier this week Moody’s downgraded its credit rating on Italy and the pressure is immense. The largest holders of Italian government debt are unsurprisingly Italian banks, primarily Intesa Sanpaolo and Unicredit which hold Euro 29bn and 24bn respectively (see chart 2). However, BNP Paribas holds in excess of Euro 12bn in Italian government bonds and French financial institutions collectively are believed to have exposure to Italy amounting to about 20 percent of Italian GDP.

    Plausible outcomes and who will pay?
    Mismanagement of this crisis will lead to extensive collateral damage and there are no winners in this process. The EBA estimates a capital shortfall of Euro 200bn in the European banking system. This number should be viewed with caution however, given the fact that the EBA has been in charge of the past lax stress tests of Europe’s banks so it might be higher. The banks’ investments in sovereign bonds are not an investment decision but rather a liquidity decision. One has to understand that government bond holdings are an integral part of banks’ balance sheets – see the theme “Banking time bomb…”. So, if sovereign bonds go from “no risk” to “risk” we are looking at a regime shift in the balance sheet composition of all financial institutions and large capital increases will be required. This will inevitably mean that all capital requirement discussions will be obsolete and banking sector regulators will have to go back to the drawing board in Basel. A joint global bank recapitalisation programme looks more likely for each day that passes.

    Impact of a possible Greek exit from the EMU, 16 ??????????? 2012




  55. Great piece in the D Tel today by Mark Pritchard re Cameron’s weakness on the EU, and why Mark P resigned from his govt post. I am delighted that some MPs are making a stand and can only wish that more would follow. He emphasised the need for a referendum on the EU> There is little time, and as Mark P points out, there is no likelihood of this govt doing anything serious about the EU (and the next govt is not likely to be Conservative, so any promises made by Cameron of what he would do if he had a majority are worthless).


  56. Meet hte Greeks and you will realise how powerful a conspiracy against the people can be !
    Don’ buy aphorisms fo this sort
    or else you will prove teh truthfulness of another saying (mine :))

    People buy the truth they deserve !!!


  57. Dit you guys notice that the German Constitutional court more or less ruled on the soon to be ratified ESM treaty? The one the German government wanted?
    “Germany’s top court said today a parliamentary committee set up to approve urgent action by the euro zone bailout fund was “in large part” unconstitutional, in a ruling that may hamper Berlin’s ability to tackle Europe’s debt crisis.”

    The kicker is this:

    “Today’s ruling will apply not only to the current temporary bailout fund, the European Financial Stability Facility (EFSF), but also to its permanent successor, the European Stability Mechanism (ESM), according to a constitutional court official.”

    In other words: the German constitutional court in fact ruled that the ESM treaty is unconstitutional.


    How is the German government to get out of this mess other than trough a Greek default?


  58. The Eurocrats seem completely blinded by the headlights. It so looks like they know they have to do something, but can’t stop long enough to think it through. So they are completely captivated by whoever has a clear vision (the bankers). Unfortunately their clear vision is to steal the entire wealth of all nations -even though that won’t be enough.
    I still haven’t found out who inside the tent is fighting for the rest of us. The rules being bent and broken, the treaties being secretly rewritten and the underhand printing. Presumably the civil servants were supposed to refuse to break the law (no, this time its different).

    So what despicable deals are now being made behind closed doors with the Hedge Funds to buy their agreement and keep the carousel going?

    I just see 20% inflation imposed on the citizen for a decade, and a huge manipulation of the oil and gas prices, because they can’t keep raising the taxes without a revolt. Even then, I see an entire continent moving to cash and a black market, and a complete disregard for honesty, integrity, and the rule of law. Does the great unelected leadership not see what they have undermined?

    I work my ass off every day, and each morning it is a struggle to bother when I see the world-changing tsunami coming. Am I just a sucker.


  59. Indeed, a very good article which hits all the right buttons.
    Cameron is either privately a supporter of the EU construct and will sit back doing nothing, or the claims made by some of his people about him being limited by the coalition are true. We don’t know. But if he put in place a near-future referendum on membership, it would probably draw many more Tory votes given the daily farce that’s going on in Europe.

    On the other side of the argument, nobody knows the effects of Britain quitting the EU – nobody, despite many people producing authoritative opinions. That must make the decision very difficult for Cameron. The one thing we do know is that any Labour Govt will continue to integrate Britain ever more into the EU, whatever they may say in public. The Lisbon Treaty comes to mind.


  60. @Innocent That would be true in an electoral system that worked properly in terms of accurately reflecting the will of the electorate. Not sure it applies when this is not the case.


  61. The court decided that a committee cannot replace the parliament vote for bailouts.

    The German parliament already has voted with 2/3 majority. No problem here.


  62. This is known. But it’s not clear what powers the German constitutional court has at its disposal to prevent Merkel doing what she wants. She’s already bypassed German laws, regulations and treaties eg: the ECB-LTRO money-printing that’s gong on is a violation of at least two EU treaties but is almost certainly being done with her blessing. I see no one being held to account.


  63. Theat ruling of the Constitutional Court was early last week, Tuesday i believe. Old news. And it has no big relevance, as the politicians will simply change or add or alter one or two or three paragraphs in the regulations for the budget committee and -voilá! – it’ s lawful again until the next ruling of the Bundesverfassungsgericht, which, if a certain kind of misuse of the court will go on will loose the remaining rest of it’s credibility. They do what they are told up there in the Bundestag and have, most of the time, not even a clue of what they are voting about. See the vote last monday on the further Greek bailout package of €130mn, a mere farce, over 700 pages of gobbledegook sent four hours before the vote on the iPads of the MP’s to inform them about what they vote for. The Reichshenhouse has nothing to do with the people anymore. And not enough people care to change things, most are caught in tittytainment anyway, and politics is so boring.


  64. @Foucalt “Am I just a sucker.” All this focus on numbers, incompetent politicians, bankers and illegal deals is taking our thoughts away from what’s happening on the ground and what the future holds.
    Decent, hard-working people, diligently saving for their future, will be asking, “What’s the point, when I am being bled dry and my pension pot is being depleted by them printing dud money.”
    As Foucalt says, it could all lead to black economies, with their attendant crimes of theft, blackmail and extortion. Worse, people may be driven to drug dealing and prostitution to make ends meet.
    I know I’m in a grumpy mood today, but I think social collapse is a very real possibility – and the horror is that no-one in authority seems to be even aware of it. That is, unless there’s a Junta of generals waiting in the wings ……



  66. @Bewildered
    Sorry, my internet has been down and I was rather busy out of town to make matters worse. My provider has said it should be back on today (after a week … speedy service!)


    PS Gemz (the real one) was a troll – – – (especially for Sebastian who needs a good dunk in a dumpster!)


  67. I have been keeping my eye off the ball as a few of you have noticed.

    It interested me that JW notes that Commerzbank shares are down to €1,77 when I last looked – it was at €1,27 … what has been going on in the mean time whilst I slept?


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