Category Archives: Credit markets

Negotiation Breakdown Exposes Widening Rift Between Germany and Greece

The negotiations between Greece and the Eurogroup are on a worse trajectory than conventional wisdom would have you believe.

Greece, Its International Creditors and the Euro

his is an excellent background piece on how Greece got where it is and how its various bailouts were structured. It also helps explain the past and current roles the various members of the Troika play and discusses the prospects for Greece achieving its aims.

Eurogroup Talks Terminated; Greece “Won’t Take Orders on Bailout”

As we indicated, we were doubtful that a deal with Greece on its bailout could get done, since if nothing else the two sides had irreconcilable positions on structural reforms. That was one of the biggest reasons for Greece rejecting the idea of extending the current bailout, that they did not want the strings attached, such as continued privatizations and further “progress” on labor-crushing market reform. The only way an agreement could have been reached would have been for Greece to capitulate on these issues, which seemed unlikely given how Syriza had risen to 80% approval ratings in the polls based on its Troika-defying stance.

So it is not surprising to learn that the bailout talks are over, with no agreement reached. But what is suprising, and not encouraging, is that if anything the Eurogroup hardened its stance against Greece and expected it to capitulate.

Robert Parenteau: Get a TAN, Yanis: A Timely Alternative Financing Instrument for Greece

TAN, or tax anticipation notes, would way be a for Greece to give itself more fiscal spending wriggle room without violating Eurozone rules. That will likely be necessary if Monday’s meeting in Brussels results in no extension of the current Eurozone bailout.

#BlackstoneEvicts

#BlackstoneEvicts is one of the messaging vehicles for a loosely-organized groups of protestors in Spain and the US who oppose private equity kingpin Blackstone’s aggressive evictions and rental abuses.

Greece, Eurozone Ministers at Fundamental Loggerheads

Bizarrely, there were leaks and news reports of progress all day on the meeting of Eurogroup ministers on a bailout memorandum. But just before 6:30 PM, the Greece government announced that any discussion of a bailout memo was off.

Eurogroup Ministers to Syriza: Drop Dead

Even though the US has waded into the Greece versus Troika impasse to press Eurozone officials to soften their position on austerity, the battle lines seem only to get harder.

Outlook Darkens for Syriza and Greece

Greece’s finances look to be more precarious than previously thought, which puts Syriza in an even weaker bargaining position.

Obama, Treasury Pushing Back Against Troika Grexit Threats; Bernie Sanders Presses for Fed to Prod ECB

The Administration realizes the risk of Grexit is real and is trying to fend that off. But even if they succeed, don’t expect that to add up to much in the way of relief for Greece.

Wolf Richter: Wall Street Has a Dream About the Price of Oil

Is Wall Street’s upbeat take on the prospect for a continued recovery in oil prices credible?

Is Syriza About to Score a Tactical Win Against the Troika?

Those who were hoping that Syriza would be cowed by the ECB’s aggressive moves to shut Greece out of bond markets and Eurozone finance ministers’ unified resistance to the new government’s proposals are no doubt frustrated by its refusal to capitulate. On Sunday, Greek prime minister Alexis Tsipras gave a rousing speech reaffirming Syriza’s plans.

Bernie Sanders Asks Janet Yellen to Explain Her Apparent Inaction on Greece

Last week, we wondered why the Fed was tacitly supporting the ECB shellacking of Greece. It appears the same thing occurred to Senator Bernie Sanders.

Michael Pettis: Syriza and the French Indemnity of 1871-73

Get a cup of coffee. This is a fabulous, readable but nevertheless carefully argued and therefore long post on the drivers of the Eurzone crisis and what the parameters for a sensible resolutions are.

Bracing for Another Storm in Emerging Markets

This post dovetails with the Michael Pettis article today. Hot money is the bane of emerging markets, but the opposition to regulating capital flows remains fierce.

Time for #GreekLivesMatter

If you are not part of the solution, you are part of the problem.

The Troika’s willingness to turn Greece into a failed state first, as a side effect of its “rescue the French and German banks” operation, and now, as part of its German hegemony protection racket, is killing people and in the longer term will only accelerate the rise of extreme right wing elements in the Eurozone. As Ilagi wrote last week:

Does the EU have any moral values at all? And if not, why are you, if you live in the EU, part of it? .

Because you don’t have any, either? And if you do, where’s your voice? There are people suffering and dying who are part of a union that you are part of. That makes you an accomplice. You can’t hide from that just because your media choose to ignore your reality from you.