ECB Pulls The Trigger: Blocks Funding To Greece Via Debt Collateral

ECB Pulls The Trigger: Blocks Funding To Greece Via Debt Collateral - Full Statement

The only question now is whether the Greek Central Bank, which the ECB said is now sufficient to meet bank liquidity needs (via the ELA which the ECB has not yanked... yet: it has given Greece until February 28 before this final prop is yanked and Greece is left to drown), is allowed to print Euros. If not, the Greek experiment at trying to stick it to Europe is about to crash and burn spectacularly.

Joking aside, what is really at stake now, if only for Greece, is everything: Syriza either folds, and cedes by withdrawing all demands, thus effectively ending its mandate less than 2 weeks after coming to power, or it exits the Eurozone.

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Ouch, I never would have thought they were going it to play it this hard.

You have only two options, swallow it all or you're out !

That's some high stakes poker if we're not being fooled (remember, shows like this have been played many times before), they talked to each other and could have made a deal to let Syriza safe face and swallow it all.

But if it's for real and Greece doesn't bow down, the other EU countries are willing to take a massive loss and Greece will be set as an example for others to see what happens with an exit. And watch out for the Russians and Chinese to step in when that happens. Greece could become a Russian/Chinese ally over night.

They probably think the EU can take the burden.

Here's what is going to happen if Greece is forced to leave EU.

So what will happen in a Greek exit from the euro (Grexit)?

Unless you believe that economics is voluntary and outcomes arbitrarily mandated from on high, then what happens on a Grexit is all of the medicine that Germany and the EU want Greece to take over many years, will all be administered all at once. Default will turn chronic misery into acute agony.

This is how it will likely pan out.

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‘Greece won’t be blackmailed’: Banks get additional €10bn to counter ECB pressure

Banks in Greece have been given the go ahead to access an additional €10 billion in emergency funding from the Bank of Greece, according to a government official. This is a push-back from Athens demonstrating its intent to roll back austerity measures.

"Greece does not aim to blackmail anyone but will not be blackmailed either," the government official, cited by Reuters, said.

Emergency Liquidity Assistance funds will be sourced from the Greek Central Bank. Previously it was capped at €15 billion, and this has been raised to €25 billion.

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By hook or by crook ...Oh wait a minute ...When I first read your title my mind went to Turkey ,Russia ,China and the BRICS . Seems like there may be a different sort of poison . What ever they may finally decide will set the final stage for something that we (our generation) will only hope turns out for the better for our kids and grand children ...The rest of the Euro Zone has got to be wondering what will happen and I am sure the MSM will be dominated on how to put this into a context to produce calm in the markets ...interesting time we live in . a reply to: BornAgainAlien

a reply to: the2ofusr1

I wonder how it must feel to be a Greek now and having voted for Syriza, do they feel sorry, or pissed because they are getting now stabbed in the back by the EU ?

Are there any Greeks on the forum who can shed some light to that ?

Good wondering ...I am thinking that the Greeks that know their history ,are saying well we did it without them in the past and we can do it again with some friendly neighbors to the east .The rest of the EU should be very concerned because , if the Greeks draw a line and become a neutral zone ,not beholden to the austerity measures imposed on them by the rest ,they will come out of the yoke and will still be a apple in the worlds eyes . China , Russian, and Iran would make a very good populate to trade with and supply lots of tourism for . That silk road is not a pipe dream and will make it's way to whom ever wants to get in on it .

I see there is a meeting going on right now between Germany ,France and Russia over the Ukraine . Putin is holding all the cards on that one . Greece could end up replacing Ukraine if things do go well in that sphere . a reply to: BornAgainAlien

I have a family member that works for a big German bank.

They have said that Germany has been preparing not just for Greece but a Spanish and Italy default and are well prepared and willing to take the hit just to prove a point that you don't # with the Germans and they are the power behind the euro.

a reply to: the2ofusr1

With Turkey already having asked to become a member of the Eurasian trade agreement, Greece could sign up as well if they are being kicked out of the EU...see how Europe would find it when Russia is at its doorstep.

a reply to: crazyewok

Our Dutch finance minister Dijsselbloem also said they had plans ready at the last height of the EU crisis to go back to the "Guilder."

It seems really desperate to make an example out of Greece to prevent a further break up of the EU...people in Italy and Spain could get frightened enough to not wanting to vote for anti-EU parties, but could also say Faq you themselves.

Caught On Tape: Dijsselbloem To Varoufakis: "You Just Killed The Troika"

If they want to take such risks, why not a planned break up of South and Northern EU, sure they can handle only one country, but it`s a huge gamble they are taking regarding other countries doing the same.

a reply to: BornAgainAlien

As I said Germany have apparently have plans for Spain and Italy going too.

The Germans are willing to call everyone bluff here.

What they cant lose is a Major EU economy like France. But they are happy to let southern Europe burn.

Greece does have options :>) . Germany is the force behind the Euro but they need all of Europe to suck at their teet . IMF-BRICS ...?? Push coming to shove . East /West ... They do sit on that border that can project either way . Heck they were a world power which is more then Germany ever became . Russia handled Germany . Germany does have NATO but that would make them a target as well as being occupied by a foreign power . I keep thinking of that vid a reply to: BornAgainAlien

a reply to: crazyewok

I understood you, but only Greece and after that Spain and/or Italy will be a whole different ball game...so yes one them, but two out of three is something different.

Italy and Spain have bigger economies, so they are willing to call the bluff on 1 out of those 3, but more and it will be different.

List of sovereign states in Europe by GDP (nominal)

Greece and Italy together are almost France.

originally posted by: crazyewok
I have a family member that works for a big German bank.

They have said that Germany has been preparing not just for Greece but a Spanish and Italy default and are well prepared and willing to take the hit just to prove a point that you don't # with the Germans and they are the power behind the euro.

The Germans have a lot of balls and hypocrisy as well.

They cried like babies over their WWI debt, WWII debt and convinced the winners of the war to lighten up.

All they did was almost destroy and enslave the world.

What did Greece do so bad? Allow people to retire at 60

OH THAT’S SUCH A GREAT SIN.

Compared to what Germany did it’s a joke.

a reply to: the2ofusr1

Not that simple though - just look at Argentina to see how a defaulting nation copes......

Greece to blame for getting into this mess, EU - ECB to blame for completely exacerbating the problem. I genuinely worry for the Greek people, certainly for the forseeable future.

For Syriza, talking the talk is all well and good but when you can't get loans you are in for a world of pain. They have promised increased minimum wages - if no restructuring, how is that even possible?

a reply to: the2ofusr1

Greece is lucky where it sits geographically in that sense, but I think they will be given a hard time by the EU...we couldn`t have Greece being blooming after an exit.

Russia would not want Germany, 80 million people without humour would be too much for the Russians.

At the same time, is it fair to ask the rest of Europe to subsidize your entire country which is basically what Greece is demanding?

If I knowingly borrow money i know i can't pay back i am committing fraud. Likewise if i loan money to someone who i know that they know they can't pay me back I'm lending fraudulently as well. Greece and the ECB deserve each other. I really hope Greece raises their middle finger to the banksters and starts fresh.

In the grand scheme of things, the gdp of Greece is pretty small. The only way a Greek default would cause the damage that is being claimed is if the institutions holding Greek debt are so leveraged that a small loss on those holdings render them insolvent. Regulators would never allow that kind of leverage would they?

I need more popcorn...

Greece Refuses To Back Down: "Government Will Do As Promised" Tsipras Says

With an increasingly vitriolic tone, the new Greek government has come out swinging today with leader Alexis Tsipras making it clear that he will implement the election pledges the people of Greece voted for:

* A NEW GREEK GOVT WILL BARGAIN TOUGH, AND PUT A FINAL END TO THE TROIKA AND ITS POLICIES

* WE MANAGED TO DECONSTRUCT THE EUROPEAN STATUS QUO THAT WANTS MORE AUSTERITY AND LESS DEMOCRACY

It took one week, Tsipras chides, to get European leaders to talk about the real problems and Greece will negotiate hard to "put an end to Troika."

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Greece: The Big Picture Update, And Why Deutsche Bank Thinks Europe Will Fold

The Greek situation summaries Greece by Deutsche Bank's George Saravelos have consistently been among the best in the entire sellside. His latest Greek update, which is a must read for anyone who hasn't been following the fluid developments out of southeast Europe, which fluctuate not on an hourly but on a minute basis, does not disappoint.

But while his summary of events is great, what is of far greater significance is his conclusion, namely that ultimately Europe will fold: "we consider the most likely outcome to be a Eurogroup offer of a new Third program" and "given that the current program expires this February the offer to negotiate a new Third program may provide political room for the government to sit on the negotiating table. At the same time such an offer is very likely to be attached to strict conditions, with the willingness to accommodate t-bill issuance an open question. Developments overnight suggest that this has become less likely, imposing maximum pressure on the government to reach agreement within a matter of weeks."

If DB is right, and if Europe folds, the question then is what concessions will the ECB and the Eurozone be prepared to give to Italy, Spain and all the other nations where anti-European sentiment has been on a tear in recent months, and especially in the aftermath of Syriza's stunning victory.

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Hmmm, I`m going to take bets now, there`s absolutely no telling how this is going to end.

a reply to: crazyewok

I second what your family member said.

The problem though (for the €Z-centralists) is not the possibility of another country like Spain or Italy leaving after Greece, but the precedent this could set.

IF Greece flips off the €Z, then what is stopping Germans to follow their example?

Step in our shoes for a moment here: why should we pay, if others just refuse?

a reply to: ColCurious

The whole EU experiment has failed.

From what I know the Greeks have had real bad austerity for 6 years now already with no end in sight. Whole streets are filled with cars who don`t drive anymore because no one can afford it.

With every country having the same currency, debasing for some countries to help out their economies is not possible. All countries having the Euro is what the problem is, or we should really become the United States of Europe, but than the "rich"countries have to support the other countries.

A clear and rare glimpse if you want to know how nasty those are being played.

This is straight out of the play book on how to subject all and everything to the masters.

Whispers Of Greek Capital Controls Begin

That didn't take long: just hours after Greece entered the ECB countdown mode, with now just 23 days until midnight on February 28, when the ECB is set to yank the final pillar of liquidity support, the ELA - as it has warned before - it is time to start contemplating Plan B, or rather plan Z. A plan, which as described by Nordea's analyst Jan von Gerich, would be quite unpleasant for that nearly extinct class of Greeks, bank depositors, because the "plan", or rather blueprint, is a well-known one: capital controls....

...Of course, the ECB knows very well that should a bank run commence then the days of the Tsipras government - capital controls or not - are numbered. Which is precisely why yesterday it tried to precipitate one. And since, as we noted earlier, the only marker of Greek leverage is the response of the global capital markets, today's pre-determined market ramp, which started with the SNB's intervention in the EUR and has since transformed into a wholesale central bank binge fest across all assets (except gold of course), the corresponding reaction in risk is precisely meant to smash any trace of leverage the new Greek finmin may have hoped he had.

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