Grecian Spring

Well the market is down today... -135pts as of 2:15p est..

Would be nice to see a four-digit decline; a '1' or '2' in front of that '135' but still, considering the Dow has been going up for all of 2012 without any rationale or reason beyond empty optimism and the Hunger to profit, we'll celebrate any triple digit down days.

Yesterday we demonstrated once again how deeply uninformed Americans are to the realities going on in Greece.  But as much as blame could be placed on the average person for not caring about anything or anyone outside of the immediate sphere of 'self',  it is also the fault of American media for intentionally doing a piss-poor job to accurately reporting on how troublesome the economic rots of the Eurozone are.

I guess media is incapable of serving corporate master and Truth equally.

Ultimately the economic and political demise of Greece will affect us all, so people better start paying attention to it as if it was local news or your favorite sports team, and not some profit-making nuisance or distant problem far, far away somewhere in the Mediterranean.

Here's some of the latest news and pieces of interest from Greece from today:

--  Greek Bailout "unagreed" 24 hrs after it was agreed upon.  The leader of the rightwing Popular Orthodox Rally (LAOS), Georgios Karatzaferis woke up to reality that the cuts would destroy what's left of Greece and pulled back support.  The Euro's value vs the Dollar plunges...  Their political party does not have enough votes in Parliament to derail the 25% reduction in minimum wage, 15,000 job cuts and other austerity sacrifices outright but let's just say their point of view is becoming more and more prevailing, especially as there's April elections to consider.

--  Greek Prime Minister Lucas Papademos has pledged to do "everything necessary" to rescue the €130bn bail-out package for Greece, and said that any senior members of Government who opposed him would be ousted.   Since at least 3 members of the coalition have resigned in protest, maybe ousters aren't necessary.

Isn't democracy just Wonderful?   Anyone who disagrees with your leadership or policy decisions, you simply 'oust'.  Of course Pamademos is a technocrat and wasn't elected by the people (he's simply a banker working for the EU and financial interests to ensure they get their money by all means necessary)

Papademos also said if Greece defaulted, there'd be 'uncontrolled chaos'.  Seems he forgot to finish the sentence... 'for the financial sector'.  And if there is chaos in Greece and the rest of the world, it will be due in large measure because the powers that be refused to make contingencies.  To the stubborn bastards who control global finance there never is nor was an Option B, so any chaos will be intentionally created to scare future debtors from defaulting.

-- Though more symbolic than reality, The Federation of Greek Police have threatened to arrest EU/IMF officials, accusing them, in a formal letter, of "...blackmail, covertly abolishing or eroding democracy and national sovereignty". They also wrote, ""Since you are continuing this destructive policy, we warn you that you cannot make us fight against our brothers. We refuse to stand against our parents, our brothers, our children or any citizen who protests and demands a change of policy."

There will come a point when the police stop fighting the protesters and join the struggle- then all bets are off, even across the Atlantic.  Hope you have some cash in a sock or something because your local bank will be on government-imposed 'holiday' for a few days to prevent a panic run.

The Greek situation also reminds me of the situation in Wisconsin last February involving that coward Governor Walker, who is in the pocket of the Tea Party controlled Koch Brothers.  He wanted to destroy the unions by making it illegal to collective bargain, so he targeted teachers, firefighters, everyday workers, etc..  The one union that was exempt from the law-- the police union.  That's what all third-world and third-rate leaders do- essentially bribe the police because without them, the leaders are powerless and emasculate.

Well now you're caught up to speed...

If you read this blog, we know you are informed and care.  But your friends... your family... your neighbors are still in a complete state of utter ignorance when it comes to the economic storm clouds coming from Greece and the rest of the Euro.   I could express a thousands analogies but I will only do one:

Due to globalization and banking interdependence, all the nations of the world are economically intertwined, like lights on a string.  When one bulb blows, it will affect all others, no matter how seemingly far away it appears on the string.

When know-it-alls know nothing

~ "I'm tellin' ya.. you gotta' be in the market!  Buy lotta stocks.. ya Gotta!"

Don't know which I hate more- the stock market, those who invest in it or those who report on it.  Tough call- all equally dreadful and in the case of investors and media, both worthy of a face scratching.  The reasons we've stated too often to take time to repeat here.  Suffice it to say, if you're not part of the 1%, you should be wanting to sharpen your claws as well...

But as much as I despise these entities, they also make me laugh at times.  I tend to find it humorous when cocky cock know-it-alls think they have all the answers and can accurately predict economic events based on assumption that all will work out when push comes to shove, then are proven wrong.

Here's a headline from this morning:


Emerging Stocks Set for Biggest Monthly Gain in Three on Greece Optimism (Bloomberg) -- "Emerging-market stocks rose, with the benchmark index set for its largest monthly gain since October, after Greek Prime Minister Lucas Papademos said major progress has been made in debt-swap talks... he’s “strongly committed” to reaching a debt-swap accord with bondholders that is crucial to lowering Greece’s debt burden and freeing up another round of aid before the country faces a 14.5 billion-euro ($19 billion) bond payment on March 20."

And the market rejoiced and figuratively held hands as they danced around in the garden of eternal optimism and never-ending profit making...  La La La...

But then later in afternoon...

Greek officials attack EU and IMF as debt talks stall (Guardian.UK) -- "Greek officials launched a vociferous behind the scenes attack on European Union and International Monetary Fund negotiators as talks in Athens over the country's mounting debts appeared to stall... a crisis meeting of party leaders would be called as early as Thursday to thrash out a response to an increasingly intransigent negotiating team sent by Brussels, which is demanding severe austerity measures before sanctioning a further €130bn (£109bn) of bailout funds...


"On the negotiations over the bailout funds, Greek MPs have objected to demands by the troika for further wage cuts and reductions in the minimum wage.  The troika (European Union, International Monetary Fund & European Commonwealth Bank) doesn't appear to be willing to accept any concessions whatsoever on reducing the minimum wage and scrapping bonuses," said the government aide. "No political party is willing to move either, saying wage cuts are a red line they are simply not going to cross. You tell me how this is going to be resolved. We have no idea and we're very worried.""

A&G does not pretend to hide the fact we want this to fail and overall, desire Greece to do what it should have done two years ago... Default.

 "Meowww... hate investors & banks sooo much.. Meeeowww!! Rrrr Rrrrr"

Investors and banks have not had to take any real financial hit or punishment since the global economic crisis began with Lehman Bros in Oct, 2008. That is now 39 months.  Its about time they did..  Its about time the ultra-wealthy around the world who do nothing but create misery in populaces then financially profit from it, hemorrhage Severe losses and feel real pain.

Unfortunately the way this game has been played for over 3 years, there's always some magic trick or scheme or compromise pulled from thin air (or someone's ass) to keep all the plates spinning so no one at the top financial echelon ever feels any economic pain.   So we're realistic to the probability that all will work itself out for the bankers and the Investors will continue to rejoice and 'dance'.

But Lord knows, we are not hoping for it.

And if Greece sells all of its soul to the banks, well there's always a ray of hope that the Portuguese wont.. or the Irish... or the Italians.. or the Spanish..

Can't have oxymorons without 'morons'

~ Greek drachma coins

The know-nothings who run the global financial world, and by extension, run and own the financial media, have recently been a wee bit more honest and forthright about Greece's economic situation than any time in the past few years.

Many are openly acknowledging that Greece will default.  But there's a catch isn't there?  Always seems to be one...

The new cool, kitchy-catchy catchphrase to be sweeping the globe on the Top 40 'Bullshit Double-Speak Phrases of the Week Countdown' IS ~drum roll~ :

'Orderly Default'

Of course this is an oxymoron, much like 'military intelligence' or 'sexy pig'.  And if this "orderly" destruction of a nation's economy was so easy or even possible, why wasn't it done two years ago before hundreds of billions of euros were dumped down Greece's drain and its corrupt leaders were so passionately determined to not go back to the drachma and sovereign autonomy?

But for laughs, here's how the scum who control global finance explain it:  Greece's creditors, bondholders, etc allow on its own for Greece to 'default' by taking very large haircuts and supposedly because this is all done "voluntarily", it will not trigger what the European banks and EU fears the most-  Credit Default Swaps

~ 1000 drachma note

CDS are a form of insurance bondholders take out when their investments pose a risk of not being paid back.  The insurance is offered and sold freely from institution to institution, but no one really expects there to be a day they'd have to be paid back.

Think of it like this- Let's say insurance companies sell tons of hurricane coverage policies for NYC and New England residents, never expecting a True Cat. 5 hurricane to directly hit.  So buying the policy is no biggie... the insurance company is happy to take your money.  But if the unforeseen becomes reality, the insurance companies can never cover even a portion of the total damage it would bring.

CDS are no different with one exception-  unlike acts of God, banks and other financials can easily manipulate economics and finance to suit their purposes.

Greece had to be propped up all this time to protect them, not the Greeks.   Now that the realization is upon everyone that Greece will default, the goal is to now perpetrate the investor 'confidence' con -- convince credit rating agencies, banks, and all vested parties the default is 'orderly' and essentially contained.

Will they succeed?  Probably.. unfortunately..   but Hopefully not.

Someone somewhere in global finance and investing-land Must take severe pain and hardship.  Someone somewhere must lose their shirt...

Sink or swim on your own, and if you drown, no one picks you up...  Could have sworn that was what Adam Smith Capitalism was all about...

~ Ancient drachma coins set as cufflinks

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PS.. Didn't feel like writing a new post when a couple sentences suffice..

Reuters headline today:  'IMF seeks $600 Billion more in funds'

Because the US runs/controls the IMF they supply 17.4% of its budget

17.4% of $600 billion is $104.4 billion.. that's how much More money in US taxpayer dollars is requested/needed to bailout Europe's national rots

It Never ends does it?   Perhaps economic capitulation and financial "reset" isn't such a terrible option in comparison..