German Push For Greek Default Risks EMU-Wide ‘Snowball’!

• The financial MSM is really for the promotion of the bankster financial casino. It is pretty much like horse racing where you hear the announcer tell the race actions, which horse is leading, dying off …blah blah blah. It is the same except horses are replaced by corporations …. place your bets now … corporation ABC is leading the charge with great EPS …. The sheeple are sucked into it and massacred. In a casino, the house always wins! Who is the house in this financial casino? Illuminist banksters! The odds are stacked against you, the markets are rigged !
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• Greece is going to default! It is a matter of when. You cannot solve a debt problem with more debts! The financial MSM implants the idea that banksters are the saviors when they approve the bailouts(ie. more debts). This is nonsense! It is all about debt enslavement and the financial rape of the Greek sheeple! The Illuminists know a default is inevitable. They are simply lining up the dominoes for a catastrophic collapse! They are once again about to employ their Hegelian dialectic, Order Out of Chaos philosophy on the world to amass even more power!
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  German push for Greek default risks EMU-wide ‘snowball’!
  By Ambrose Evans-Pritchard, http://www.telegraph.co.uk/
  Germany is pushing behind the scenes for a “hard” default in Greece with losses of up to 60pc for banks and pension funds, risking a chain-reaction across southern Europe unless credible defences are established first.
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  Officials in Berlin told The Telegraphit is “more likely than not” that investors will suffer fresh losses on holdings of Greek debt, beyond the 21pc haircut agreed in July. The exact level will depend on findings by the EU-IMF “Troika” in Athens.
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  “A lot has happened since July. Greece has fallen back on its commitments, so we have to assume that the 21pc cut is no longer enough,” said one source. Finance minister Wolfgang Schäuble told the Frankfurter Allgemeine that the original haircuts were “probably” too low, saying banks must have “sufficient capital” to cover greater losses if need be. Estimates near 60pc have been circulating in Berlin.
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  The shift in German policy has ominous echoes of last year when Chancellor Angela Merkel first called for bondholder haircuts, setting off investor flight from Ireland and a fresh spasm in the EU debt crisis.
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  “This could set off a snowball effect,” said Andrew Roberts, credit chief at RBS. “The markets will instantly switch attention to Portugal, where two-year yields are already 17pc”. Although Greece’s 10-year bonds are trading at a 60pc discount on the open market, European banks do not have to write down losses so long as there is no formal default and the debt is held in their long-term loan book. The danger arises if banks are forced to “crystallize” the damage before raising their capital buffers.
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  Marchel Alexandrovich from Jefferies Fixed Income said Germany risks opening a “Pandora’s Box” by unpicking the Greek deal. “It would be a complete disaster, a signal that sovereign debt is not safe. Investors would pull their deposits out of Portugal, Ireland, Spain and Italy and set off bank runs across Europe,” he said. “The French are against doing this and so is the European Central Bank. They know banks need more time to adjust. We don’t think Europe will pull the trigger.”
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  Mrs Merkel and French president Nicolas Sarkozy vowed over the weekend to do “all that is necessary to guarantee bank recapitalisation”, promising a package for Greece and the eurozone by the end of the month. The pledge was vague.
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  “No details of the plans were released, presumably because they haven’t actually got any yet. That in itself is astonishing,” said Gary Jenkins from Evolution Securities. “Nothing has really changed and we still expect that the most likely outcome will be a comprehensive package – that circles the wagons around the sovereigns and the banks – that will only be agreed at one minute to midnight when the alternative is that the market is about to implode on the Monday morning.”
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  … for the full article click here!

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