Greece Is Facing The Financial Abyss

Zero Hedge: Germany Gives Greece One Final Ultimatum After Friday's "Optimistic" Talks Devolve Into Disagreement And Confusion

On Friday, the main catalyst that launched the early ramp in the EURUSD, subsequently sending both the Dax over 12,000, and the US stock market soaring, was speculation and hope that the latest round of Greek talks on late Thursday night ahead of tomorrow key meeting between Tsipras and Merkel in Berlin, had gone well, and there was a reason to be optimistic about the near-term for a Greece which increasingly more see as on the verge of expulsion from the monetary union. We explained as much, although we added the provision that at this point it is likely too late to do much if anything about Greece in "German DAX Surges Over 12,000 On Greek Optimism, But The Money Has Run Out."

Now, courtesy of reporting by the FT, we can also rule out any of the so-called optimism in the aftermath of Thursday's talks because as Peter Spiegel reports, not only was there no real consensus, but the talks "ended in disarray", and even though "Greece’s prime minister and fellow Eurozone leaders emerged from a meeting early on Friday morning touting a breakthrough agreement to unlock much-needed bailout funds for Athens — only to fall into disagreement hours later about what it all meant."

WNU Editor: This is not going to end well .... for Europe, and especially for Greece.

More News On The Greek Financial Crisis

'Moment of truth' for Greece and the euro as Tsipris arrives in Berlin -- The Guardian
Greece Faces Decisive Week as Tsipras Is Set to Meet Merkel -- Bloomberg
Greek and German leaders meet amid cash shortage fears -- BBC
German media: Greece to remain liquid until April 8 -- Deutsche Welle
Greece’s leader warns Merkel of ‘impossible’ debt payments -- Financial Times
Greece Fights German Bailout Demands With Nazi-Era Claims -- AP
Greece heads for showdown with Germany over World War II debts -- Washington Post
How German voters are losing patience with Greece -- Kate Connolly, The Guardian
Only Technocrats Can Save Greece Now -- Yannis Palaiologos, WSJ
How Greece Became A Basket Case -- David Patrikarakos, Daily Beast
Explaining Greece's Financial Disarray -- Stratfor

Update: Greece has no allies in the EU .... Austrian finance minister sees lack of trust in Greece (Reuters) .... Spain says no cash for Greece until reforms implemented: FT (Reuters) .... France's Hollande says he will tell Greece they need to respect commitments (Forex Live) .... If Greece exits, don't expect us to follow: Italian finance minister (CNBC).

Greece Threatens To Unleash Waves Of Migrants And 'Jihadists' If Europe Does Not Bail Them Out Of The Debt Crisis

Greek Defence Minister Panos Kammenos. Reuters

Vice News: Anger at Greece's Threat to Unleash Wave of Migrants and 'Jihadists' if Europe Leaves it in Crisis

Germany has responded with outrage to a threat by Greek ministers to unleash a flood of migrants and jihadists upon Europe — and particularly Berlin — should the EU fail to help Greece out of its economic crisis, with politicians and security officials branding the remarks irresponsible and "racist."

Greek Defense Minister Panos Kammenos, leader of the right-wing, anti-austerity Independent Greeks (ANEL), the junior coalition partner to Prime Minister Alexis Tsipras' Syriza, warned of "a wave of millions of economic migrants" who could potentially enter the European Union via Greece if their relationship with the bloc was to falter.

WNU Editor: Not surprising .... the Europeans are furious .... Greece’s Migrants Threat Rubs Dutch, Germans Wrong Way (Nick Ottens, Atlantic Sentinel). My prediction .... we are now one step away from Greece being booted out of the EU, forced into bankruptcy, and being faced with visa controls and a regulated border with the rest of Europe. On a personal note .... if you want to take a vacation in Greece this summer .... I suspect that it is going to be very cheap .... but you may have to face a lot of red tape at immigration and/or passport control when you leave Greece.

More News On Greece Threatening To Unleash Waves Of Migrants And 'Jihadists' If Europe Does Not Bail Them Out Of The Debt Crisis

Ditch us and we'll let thousands of jihadis into Europe, warn Greeks: Ministers' threats as eurozone urges Athens to speed up reforms to receive £172bn bailout -- Daily Mail
Greece threatens to unleash wave of migrants on the rest of Europe 'including jihadists -- The Independent
Greece's defence minister is threatening to 'flood Europe with migrants' -- Business Insider
Greece Threatens to Send Islamic Terrorists to Europe -- Sputnik
Senior Greek Official Threatens To 'Flood' Europe With Migrants, Jihadists If Bailout Ends -- IBTimes
Greece warns Europe: End bailout and we will flood you with jihadists -- Mirror
'We'll send our refugees to Berlin': Greek minister -- The Local

The Greek Government Is Now Going After The Country's Pension Funds

Financial Times: Greek government presses social security funds to hand over cash

Greece’s cash-strapped Syriza government is pressing the country’s social security funds to hand over hundreds of millions of euros immediately to ensure that pensions and civil servants’ salaries are paid this month.

The unprecedented transfer of bank deposits, which is opposed by pension and welfare funds, follows an unexpectedly sharp fall in tax revenues in January that has left the finance ministry scrambling to raise funds to make a €1.2bn loan repayment to the International Monetary Fund due by March 20.

Yanis Varoufakis, the finance minister, insists Greece has enough cash to meet its debt obligations this month, while at the same time warning that payments to government suppliers and refunds of value added tax may be suspended because of the cash crunch.

WNU Editor: This is what happens when a government is desperate for cash .... they steal the pensions (see above story), they take their time to make the hard decisions .... Greece told to 'stop wasting time' over debt deal (BBC), and they blame others for their mess .... Greece says Germany owes it compensation for WWII occupation (AP).

Greece Will Miss Today's Deadline In Submitting Draft Reforms. Many Greeks Are Angry With The New Deal

New York Times: Greece’s Leaders Face a Revolt at Home as They Try to Appease Creditors

BRUSSELS — Greek leaders scrambled on Sunday to come up with a list of proposed changes to the nation’s austerity program that would be acceptable to their creditors by a Monday deadline, even as they faced a revolt by members of their own radical-left party, angered that the government had bent to demands by Brussels.

An 11th-hour deal reached on Friday by Greece and eurozone finance ministers did nothing immediately to reduce the obligations Greece must fulfill to keep a lifeline of cash coming and avoid insolvency for the heavily indebted government.

WNU Editor: A lot of Greeks are not happy with this deal .... 'It's treason!' Greek anger at government u-turn (CNBC). What's my take .... Greece had no choice. No one is going to lend a penny to Greece unless there are strict rules, guidelines, and commitments .... and on the top of that list is austerity.

More News On Greece's Debt Agreement With The EU

Greece Delays Awaited Reforms Until Tuesday -- WSJ
Greece to miss deadline to submit draft reforms -- The Guardian
Greece overhauling reforms, but faces dissent at home -- AP
Greece readies reform plans to first sign of leftist unrest -- Reuters
Greece races to win bailout extension -- AFP
Ten days that shook the euro; how Greece came to the brink -- Reuters

EU And Greece Reach An Agreement To Extend Their Bailout

BBC: Greece bailout extension agreed after eurozone talks

Greece and eurozone nations have agreed a deal to extend financial aid after bailout talks in Brussels.

Eurozone finance ministers reached an agreement to extend Greece's financial rescue by four months.

Dutch finance minister Jeroen Dijsselbloem, head of the Eurogroup, said that Athens had pledged to honour all its debts.

"This is a very positive outcome," he told a news conference on Friday night.

WNU Editor: Greece was lucky to get 4 months .... but I have doubts that they will fulfill their promises. But we shall see. The above commentary posted yesterday sums up the situation perfectly.

More News On The EU And Greece Reaching An Agreement To Extend Their Bailout

Greece, euro zone creditors reach accord on loan -- Reuters
Greece and eurozone make a loan deal -- AP
Greece Deal Reached -- Bloomberg
Greece Reaches Accord With European Officials to Extend Bailout -- NYT
Eurogroup sets Greece deadlines for reform details -- Reuters

Greek Debt Talks Have Collapsed

Daily Mail: Greece snubs 'absurd' bailout offer from EU despite their being just two weeks to go until Athens runs out of cash

* Talks on the economy between Greek and EU finance minsters collapse
* Current bailout runs out in two weeks and Greece needs an extension
* But Athens rejected a new bailout offer saying that it was 'absurd'
* If no deal is reached, Greece will not be able to service its debt
* The country will run out of money and not be able to pay civil servants

WNU Editor: This is not going to end well .... especially for Greece.

More News On The Collapse Of The Greek Debt Talks

Greece bailout talks break down after Athens rejects 'unacceptable' eurozone demands -- The Guardian
Talks Collapse, As Greece Rejects E.U. Bailout Deal -- NPR
Meeting on Greek Debt Produces an Ultimatum -- NYT
Greece bailout: Varoufakis 'willing' as talks collapse -- BBC
Hopes fade for early end to Greece debt crisis as Germany digs in -- The Guardian
Greece balks: What’s next? -- CNBC
Here's what happens if Greece is forced out of the euro -- Mike Bird, Business Insider
Time is running out to save Greece, and the markets are spooked -- Quartz

Greek Debts Talks Are Stalemated

BBC: Greece bailout talks: No agreement in Brussels

Greek and eurozone officials have failed to reach an agreement over Greece's debt crisis, though both sides said there was still hope for a deal.

Eurogroup President Jeroen Dijsselbloem said seven hours of talks in Brussels had been "constructive".

But they ended without a joint statement to outline procedural steps ahead of further talks next Monday.

WNU Editor: Greece does not want to respect its past agreements .... but they want more money .... this may make sense in Greece, but to those who are owed money and are now being told to forget about it .... but still give us more money .... I doubt that it will fly. Greece's call for war reparations is also not helping the debate .... Greece Seeks to Make War Reparations Part of Debt Debate (WSJ).

More News On Greece's Debt Talks

After Talks, Eurozone and Greece Fail to Settle Differences Over Debt -- NYT
Greek debt deal elusive but investors remain hopeful -- AP
Greek PM Tsipras in Brussels as clock ticks on EU bailout -- Reuters
Greece and eurozone in stalemate over debt burden -- The Guardian
Eurozone and Greece still a long way apart after talks -- The Australian
Greece bailout talks end with no agreement -- Al Jazeera

Former Federal Reserve Chief Alan Greenspan Predicts Greece Will Leave The Euro

A former U.S. Federal Reserve chairman, Alan Greenspan, predicted in an interview Sunday that Greece will eventually have to leave the eurozone and that the monetary union itself could eventually collapse. The former Fed chairman is pictured here in Washington May 14, 2014. Reuters/Jonathan Ernst

Daily Mail: Greece 'will have to quit eurozone': Former U.S. Federal Reserve chief says new left-wing government will default on its debts

* Alan Greenspan says eurozone holds 'all the cards' against Greece
* Greek PM Alexis Tsipras has vowed to write off the country’s debts
* He yesterday outlined his anti-austerity government programme
* Policies include an increase in the minimum wage and free electricity

More News On Former Federal Reserve Chief Alan Greenspan Predicting Greece Will Leave The Euro

Greenspan Sees Greek Exit From Euro as Just a Matter of Time -- Bloomberg
Alan Greenspan predicts Greek exit from eurozone inevitable -- UPI
Greece will leave the Eurozone, says Alan Greenspan -- Euronews
Greece: Greenspan predicts exit from euro inevitable -- BBC
Alan Greenspan says Greece will have to leave eurozone -- The Guardian
Greenspan Warns Of Greece Euro Exit, Eurozone Collapse -- IBTimes
Former Fed Chair Greenspan Predicts Greece Will Leave Euro -- Time

Update: This is not going to happen .... Payback time? Greek PM seeks reparations over Nazi occupation & war-time loan (RT).

Will Greece Pay-Off Its Debts?

Reuters: Greece starts drive to sell new debt deal to doubting Europe

WNU Editor: Greece's finance minister is now in Paris hoping to gain French support for their program of debt reduction .... but I suspect that they will be receiving the same treatment as they did in Germany .... Greek leaders divorced from reality, says Berlin after Tsipras asks for debts to be written off (Daily Mail). My prediction .... the private capital markets are not going to lend money to Athens and the only ones who will are the lenders that the new Greek government has vowed to not negotiate with .... a fact that even Greece's new PM is beginning to realize .... Alexis Tsipras, new Greek PM, vows to pay off debts (CBC/AP).

Update: Anti-austerity protests are now spreading to Spain .... Anti-austerity anger sweeps from Greece to Spain as hundreds of thousands march through Madrid in support of fledgling radical leftist party (Daily Mail)

Update #2: ECB Threatens Athens With Bank Funding Cutoff If No Deal In One Month: February 28 Is Now D-Day For Greece (Zero Hedge)

Greece Votes In The Far Left

Daily Mail: Greek election leaves Eurozone in crisis: Far Left sweeps to victory with vow to end austerity years as EU braces for 'catastrophe'

* Syriza soars ahead of ruling New Democracy with predicted 149 seats - just short of 151 it needs to rule outright
* PM Antonis Samaras conceded defeat after warning of 'catastrophe', adding: 'The Greek people have spoken'
* Syriza's leader, aged just 40, promised to 'restore the country's lost dignity' and 'clash with old establishments'
* Euro hit 11-year low hours after the result, which also put Nazi-influenced far right party Golden Dawn in third place

WNU Editor: Cannot say that I am surprised. Syriza leader Alexis Tsipras election message was very clear .... to a country that has been devastated by economic mismanagement he vowed that Greece would not respect its agreements on paying down its debts while promising an end to austerity and .... implying a return to better times. What is my prediction .... he is going to fail. Greece is broke .... and half the country is unemployed or under-employed. Credit markets are all but dried up .... and what is being given is done with strings attached. The entrepreneurial class has all but been destroyed by high taxes, regulation, and corruption .... and I do not expect better times for this group with a former Communist now dictating policy. But Greece's actions will have repercussions .... failure to respect its agreements will result in Greece being kicked out of the EU and barred from credit markets. The impact on the EU/IMF/World Bank/and international lenders will be profound .... they are facing a $300 billion hit .... and this in turn will impact those countries and institutions that lent the money in the first place. Expect these institutions to start running around for a bailout and/or emergency funds soon. As for Greece itself .... they are going to be facing some very hard times ahead. Countries that get frozen out of international credit markets end up suffering greatly .... and for a very long period of time. And for Greece .... that long time is going to be a decade or two.

More News On Today's Elections In Greece

Tsipras declares end to 'vicious cycle of austerity' after Syriza wins Greek election – live updates -- The Guardian
Tsipras pledges end to ‘vicious cycle of austerity’ at victory speech in Greece -- Euronews
Greece election: Anti-austerity Syriza leader Tsipras vows to end 'pain' -- BBC
Tsipras moves to form anti-austerity Greek government after crushing victory -- Reuters
Anti-Austerity Party Wins Greek Election -- VOA
Greece’s anti-austerity Syriza party officially wins parliamentary elections -- RT
Greek radical left wins election, threatening market turmoil -- Al Jazeera
Samaras: "my conscience is clear" says defeated Greek PM -- Euronews
Greece elections: Syriza and EU on collision course after election win for left-wing party -- The Independent
Euro Slides to 11-Year Low After Greece’s Anti-Austerity Party Wins -- Sputnik
How Europe reacted to Syriza's win -- The Telegraph
Euro, stocks slip as Greece set to reject austerity -- Reuters
Syriza Win in Greek Vote Sets Up New Europe Clash -- WSJ
Syriza victory: Turning point for EU? -- Chris Morris, BBC

Why Greece Needs to Change

Theopi Skarlatos, BBC: Greece election: Love in a time of crisis

WNU Editor: While reading this BBC post on the crisis in Greece, I came across this ....

.... A doctor, Georgia, explains how she also works as an escort in the sex industry to support her family.

Her private clinic currently treats three patients a week, but the peak summer season in the sex industry enables her to keep up with the rental payments on her family's home and the healthcare bills for her elderly parents.

"I live a double life and only I can know about it," she says. "I have applied for jobs in medicine abroad and wait every day in hope of a reply."

When women doctors are forced to prostitute themselves to survive .... that is when you know that your system deserves to be thrown out.

Greeks are going to the polls tomorrow, and while the front runner is a former communist who has vowed to challenge and change the system ... I am still pessimistic that anything will change in the short to medium term. The economic and social problems are too deep .... and it will probably take ten to twenty years to sort itself out .... and even longer to change the culture of corruption and abuse that has rooted itself into the very fabric of government (from the bureaucrats to their political masters) that caused this mess in the first place.

Update: I must be channeling Zero Hedge ... he also read the above BBC post. Tyler Durden  vents on Europe and on Greece .... he is angry, and if you have ten minutes to spare .... read his post .... A Bunch Of Criminals (Zero Hedge).