Saturday, June 20, 2015

"The Collateral Has Run Out" - JPM Warns ECB Will Use Greek "Nuclear Option" If No Monday Deal




"The Collateral Has Run Out" - JPM Warns ECB Will Use Greek "Nuclear Option" If No Monday Deal

Submitted by Tyler Durden on 06/20/2015 11:32 -0400


In Athens on Friday, the ATM lines began to form in earnest.



(via Corriere)

Although estimates vary, Kathimerini, citing Greek banking officials, puts Friday’s deposit outflow at €1.7 billion. If true, that would mark a serious step up from the estimated €1.2 billion that left the banking system on Thursday and serves to underscore just how critical the ECB’s emergency decision to lift the ELA cap by €1.8 billion truly was. “Banks expressed relief following Frankfurt’s reaction, acknowledging that Friday could have ended very differently without a new cash injection,” the Greek daily said, adding that the ECB’s expectation of “a positive outcome in Monday’s meeting”, suggests ELA could be frozen if the stalemate remains after leaders convene the ad hoc summit. Bloomberg has more on the summit:

Dorothea Lambros stood outside an HSBC branch in central Athens on Friday afternoon, an envelope stuffed with cash in one hand and a 38,000 euro ($43,000) cashier’s check in the other. 
She was a few minutes too late to make her deposit at the London-based bank. She was too scared to take her life-savings back to her Greek bank. She worried it wouldn’t survive the weekend. 
“I don’t know what happens on Monday,” said Lambros, a 58-year-old government employee. 
Nobody does. Every shifting deadline, every last-gasp effort has built up to this: a nation that went to sleep on Friday not knowing what Monday will bring. A deal, or more brinkmanship. Shuttered banks and empty cash machines, or a few more days of euros in their pockets and drachmas in their past - - and maybe their future.






For Greeks, the fear is that Monday will be deja vu, a return to a past not that distant. Before the euro replaced the drachma in 2002, the Greeks were already a European bĂȘte noire, their currency mostly trapped inside their nation, where cash was king and checks a novelty. 
Everything comes together on Monday. Greek Prime Minister Alexis Tsipras, back from a visit with Vladimir Putin in St. Petersburg, will spend his weekend coming up with a proposal to take to a Monday showdown with euro-area leaders. 
A deal there is key. The bailout agreement that’s kept Greece from defaulting expires June 30. That’s the day Greece owes about 1.5 billion euros to the International Monetary Fund.

...the B Movie Set...

Mario Draghi Responds To Zero Hedge: "There Is No Plan B"


This is an older post, but still quit telling for the current moment... -AK

Mario Draghi Responds To Zero Hedge: "There Is No Plan B"

Submitted by Tyler Durden on 04/04/2013 10:34 -040

This happened earlier today, at the ECB press conference:

Scott Solano, DPA: Mr Draghi, I've got a couple of question from the viewers at Zero Hedge, and one of them goes like this: say the situation in Greece or Spain deteriorates even further, and they want to or are forced to step out of the Eurozone, is there a plan in place so that the markets don't basically collapse? Is there some kind of structural system, structural safety net, especially in the area of derivatives? And the second questions is: you spoke earlier about the Emergency Liquidity Assistance, and what would have happened to the ELA in Cyprus, the approximately €10 billion, if the country had decided to leave the Eurozone? 
Mario Draghi, ECB: Well you really are asking questions that are so hypothetical that I don't have an answer to them. Well, I may have a partial answer. These questions are formulated by people who vastly underestimate what the Euro means for the Europeans, for the Euro area. They vastly underestimate the amount of political capital that has been invested in the Euro. And so they keep on asking questions like: "If the Euro breaks down, and if a country leaves the Euro, it's not like a sliding door. It's a very important thing. It's a project in the European Union. That's why you have a very hard time asking people like me "what would happened if." No Plan B. 
Secondly, I think the ECB has shown its determination to fight any redenomination risk. And OMT with its precise rules and acting within its mandate, is there to this purpose. So that's the answer to the first question. 
The second question was about the ELA, but again it's related to "if Cyprus leaves" and again we don't have that in mind, so.... No Plan B.
Informative. We do have three follow up questions:
With Capital Controls in place in Cyprus indefinitely, do local ATMs dispense "political capital" instead of actual capital? 
If the Euro is not like a "sliding door", is there a more apt analogy of what the Euro is?
What are the "precise rules" of the OMT? Earlier, Mr. Draghi replied to the FT's Michael Steen, who asked for the second time [this] month in a row, if there will ever be a legal term-sheet for the OMT, that "he hopes so" - it appears to us that based on this answer there are not only no precise rules for the OMT, but there are no rules period. 
Finally, here is the response by the EURUSD the second the Zero Hedge questions were asked.


The full exchange takes place 57 minutes 45 seconds into the clip below:



And in Italy:

The Arcturians: Top of the Ladder



Top of the Ladder
 as channeled from the Arcturians by Susan Lie Ph.D.

Thought forms are the alphabet for Light Language. From the top of the ladder, everything appears different, as reality is no longer limited to the third dimension. From your new perspective, the physical world is something that you observe rather than live.

From the bottom of the ladder, you can only perceive the physical world, but as you climb your "stairway to Heaven" you begin to perceive the same things in a different way.

For one thing you begin to communicate via thought forms rather than individual words. You communicate in this fashion because you can see the energy patterns and thought forms, with your ever-opening Third Eye. These thought forms instigate the "feel" of the message in your High Heart.

Somewhere along your journey up the ladder your Third Eye begins to "tickle," and your High Heart begins to "hum." Increasingly, the tickle and hum intermingle to create your constant interaction with all life.

This interaction is initiated with a growing realization that you are NOT alone-EVER. In fact, the term "alone" becomes an outdated term like "buggy whip." When you no longer used a horse and carriage to take you around your life, you no longer needed a buggy whip.

In the same manner, as separation and polarity leave your perceptions, you no longer have the experience of being alone. When you were in the third dimension, towards the bottom of the "ladder of life," you went into Nature to be alone.


But as you perceive Nature from the higher rungs of this ladder, you are aware that everything is alive. You know everything is alive because you can perceive the life force.

This blog is supported by ads and donations. If you enjoy this blog please consider supporting it with a contribution via PayPal.