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It's a kitchen sink of initiatives agreed to by the Troika to help reduce Greece's debt load....

It's a kitchen sink of initiatives agreed to by the Troika to help reduce Greece's debt load. Among them are buybacks of the country's debt, a return of profits booked by the ECB from its SMP purchases, a reduction in bailout program interest rates, and the outright deferral of some interest payments. Worried about frontrunning? Lagarde: "The less we talk about the debt buyback, the better we are with regard to pricing."
Comments (17)
  • If Greece had a nickel for every time someone made an announcement about "bringing Greece's debt ratio to a sustainable path," the country wouldn't be broke. The bonds are already trading at 30% of face value, just default and get it over with.
    26 Nov 2012, 09:30 PM Reply Like
  • "...just default and get it over with"


    I was going to say that such position is not only wrong, but also, exceedingly simplistic, but I better refrain. Instead, let me invite you to short Greece's debt, wait for the inevitable default, and collect what you seem to think is free money.


    Please let me know how that trade works out for you.
    27 Nov 2012, 01:38 PM Reply Like
  • Who's idea was this to forgive them for 40 billion? If I remember correctly was Greece the country that has high coruption,tax evaders, all the really bad things a bad country can offer. You can 't teach a old dog new tricks. The. Greeks see a fresh batch of €'s a cominng and there getting there foreign bank deposits slips out for there deposits.
    26 Nov 2012, 09:30 PM Reply Like
  • or perhaps kitchen sink of excuses is more apt!


    26 Nov 2012, 09:32 PM Reply Like
  • Kicking this dented can is getting old...some serious stuff is going to happen soon!!
    26 Nov 2012, 10:54 PM Reply Like
  • Just kicking the can down the road until the German election is over and they can negotiate a principal writedown.
    26 Nov 2012, 10:59 PM Reply Like
  • D U they will try it is like our election the EU was told to keep it quiet as much as possible so Obama could be reelected. S this is the same play till the German and the Italian election as well I expect drama before and after. The voters can't be that stupid and short sided? Or at least I hope not. If this scenario happens will the Fed end up helping out again? I hope not we could end up going faster to an Evil World Govt whether it is obvious or not. The Big Bankers seem like they want to very badly, so they can stay in power. Hoping I am wrong on this one.
    27 Nov 2012, 02:43 AM Reply Like
  • Greece is cooked. Well done, might I add.
    27 Nov 2012, 04:30 AM Reply Like
  • Only the most intellectually challenged will not recognise this as a massive haircut and this time of public (taxpayers) credit.


    Buyback programme of exiting debt trading at 30% to nominal, deferring interest payments by 10 years, interest on loans the first aid programme reduced to 0.7% above Euribor (0.5%) for a continuously defaulting, corrupt and failed state, doubling the tenor from 15 to 30 years.


    As a wild guess, I'd judge this to be a haircut of over 50%. But you can bet your house that Europe's politicians will not mention haircut (technical default) once.




    "The less we talk about the debt buyback, the better we are with regard to pricing."


    This is just the icing on the cake. Guess what, useless cow, Greek bonds have doubled in months, because the oh so secret plan has been known within hedge fund circles long before Lagarde could look even spell the word "frontrunning".


    The European taxpayers are paying the hedge funds and banks billions (again), but "lets keep quiet". Yeah right. We are "managed" by the most imbecilic and incompetent people this planet could create (or the most corrupt). You decide.
    27 Nov 2012, 04:47 AM Reply Like
  • the answer is corrupt! Do I win a million dollars now? And can I get paid in Canadian dollars please?
    27 Nov 2012, 05:00 AM Reply Like
  • Hard to believe these bureaucrats can pay themselves top dollar in salaries, bonuses, and perks, and still be issuing press releases on this, after years of failures to get anything accomplished.
    27 Nov 2012, 09:40 AM Reply Like
  • 'Guess what, useless cow...' (he he he)


    Yes, this is yet another bailout from taxpayers (or savers or creditors) to debtors (or special interest creditors). Big surprise (not). The only way this nonsense will stop is for the screwed to get up and do something about it, and noticeably, en masse. Otherwise, moral hazard is here to stay. So fight this corrupt virus.
    27 Nov 2012, 02:24 PM Reply Like
  • ............And, ..........if you don't sell the Market, short now, don't know what a top is. My money is where my mouth is! ~(The Boy That Cried : W O L F "!)
    27 Nov 2012, 05:18 AM Reply Like
  • Greece has a simple strategy: default; blackmail; default; blackmail and finally default entirely, abandon the Euro; exit the EU and inflate itself into Argentina or Zimbabwe and blame Germany all the while
    27 Nov 2012, 06:03 AM Reply Like
  • Its all bush's fault and your a racist.
    27 Nov 2012, 06:17 AM Reply Like
  • ......And.....The "D E A L " is of temporary nature: ~ ~ If Zeus doesn't agree, Prometheus is "still, bound"!
    27 Nov 2012, 06:04 AM Reply Like
  • This is just bullish for gold. Europe is monetizing Greece's and other countries debts while they continue to run up deficits.


    I may be reassessing my final price targets for gold and silver.
    27 Nov 2012, 09:42 AM Reply Like
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