Juncker Warns Of Greek Default As Europe’s Patience With Greece Runs Out !

• The idea that PSI (private sector investors) will accept a 70% haircut and restructure Greek debt ‘voluntarily’ ie. cannot be declared as default, while the ECB and IMF will take no losses is questionable. Why would anyone exchange their existing loans/bonds for more loans at an even longer time period when it is clear that Greece has no ability to pay?
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• Even after all the planned debt forgiveness and restructuring, we are talking about debt to GDP of 120%. With the collapse of the Greek economy and the PIIGS situation, how likely is it that PSI will see their money back? Not likely at all. The rational thing for the PSI to do is to reject compromises and force Greece into a hard default. Then PSI can claim insurance using their CDS. This is of course something which the banksters do not want. They are the parties which issued the CDS and have to pay out.
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• The Illuminist banksters will paint a picture that it is all Greece’s fault. In reality, what these Illuminist banksters have offered are more debts (not bailouts, it is a misnomer) upon existing debts. The sane thing for Greece to do is to declare a hard default! The Greeks should not be made to pay odious and fraudulent debts created by Illuminist banksters in collusion with Illuminist politicians.
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  Juncker Warns Of Greek Default As Europe’s Patience With Greece Runs Out ! 
  by Tyler Durden, http://www.zerohedge.com/ 
  Following up on our report from this morning that according to former Greek defense minister, German submarine chief procurer, and not to mention Jenny Twenty repeat offender, Evangelos “Xanax” Venizelos, we learn that the god of Deus Ex Machinae is about to abandon Greece, after an announcement by that most magic unicorn-infatuated of bureaucrats, Eurogroup head Jean-Claude Juncker made it clear that Greece is all but finished.
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  As Reuters reports, “The possibility of a sovereign default by Greece cannot be ruled out, Jean-Claude Juncker, head of the Eurogroup of finance ministers from the single currency zone, said in a German magazine on Saturday.” Translation: A Greek default on that €14.5 billion bond maturity D-day of March 20, is now inevitable. In an advance copy of comments to news weekly Der Spiegel, Jean-Claude Juncker was quoted as saying Greece could no longer expect solidarity from other euro zone members if it cannot implement reforms it has agreed. “If we were to establish that everything has gone wrong in Greece, there would be no new programme, and that would mean that in March they have to declare bankruptcy,” he said. So after years of delaying the inevitable sovereign Lehman weekend, it is finally here. As a reminder, when Lehman filed, everyone, at least those in charge, thought the fall out could be contained. It couldn’t, and the Fed had to step in with roughly $30 trillion in backstops, guarantees, and asset purchases. The same will happen this time.
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  Curiously, it was none other than Zero Hedge who said back in April of 2010, that Greece should just cut the cord and get on with it, because “Not only will a delay in defaulting do nothing for the economy except bleed it to death slowly, but ever more frequent risk flare episodes culminating in bank runs will intensify the deposit outflows and impair the banking system beyond repair (for depositors to keep their money in Greek banks, they need to be compensated for the risks: double digit rates sound about right), thus dooming any hope for an economic recovery.” Funny how correct we were on that assessment, just two years ahead of the Eurozone’s kleptocrats. On the other hand, having called Europe’s bluff for as long as it did, is also an admirable development, if only instead of recycling the cash mooched out of Germany to pay European banks, it had been injected back into the economy and not into German submarines….
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  As for next steps, the only question now is what happens in that critical interval between February 29 when the second ECB 3-year LTRO takes place, and March 13, when the next FOMC statement is due, incidentally just after the BLS announce that all the labor numbers in the past few months were really just a joke, and the economic contraction is about to hit the US despite what those who believe that the market, and thus the economy, is really just a reflection of one month’s seasonal labor adjustment.
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  And while in the past imminent deadlines were always promptly forgotten this time around, Greece may have boxed itself into a corner, having said earlier today that all must be set in under 24 hours or else the bailout is off the table. Alas, there will be no resolution tomorrow.
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  … for more click here!

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