"When the first revision of the second Greek bailout to the tidy round number
of €130 billion was announced, we scoffed, mockingly. Because a country which
then had a 7% budget deficit, and now has a deficit that will be well in the
double digits, and not to mention a banking system that is now hollow following
tens of billions in deposit withdrawals as month after month the Greek bank run
gets worse, would obviously need much more liquidity (but banish the thought
that it is a solvency crisis...) Sure enough, earlier today Der Spiegel broke
the news that the second bailout, which has yet to be re-ratified, and absent
Greece meeting demands to cede fiscal sovereignty, is likely a non-starter,
would be increased to €145 billion "citing an unidentified
official from the so-called troika." So whether or not this is true is irrelevant: what matters is that Spiegel released the article in the same series of posts in which it explained just why Germany has full right to demand (via European enforcement mechanisms or however) virtually anything in exchange for the ongoing endless bailout (such as: Merkel macht Wahlkampf für Sarkozy and Griechenland sträubt sich gegen EU-Aufpasser). Which means one thing only: the great propaganda spin machine is now on, and its only purpose is to provide Germany a buffer of "having done everything in its power" to prevent the now inevitable Greek default. Which, incidentally, means that a Greek default is inevitable. Because at this point once the default floodgates open, the question will be not where the bonds will trade, but just how big the impairment on the European DIP (aka Troika bailout package) will be..."
at http://www.zerohedge.com/news/cost-second-greek-bailout-raised-%E2%82%AC145-billion
official from the so-called troika." So whether or not this is true is irrelevant: what matters is that Spiegel released the article in the same series of posts in which it explained just why Germany has full right to demand (via European enforcement mechanisms or however) virtually anything in exchange for the ongoing endless bailout (such as: Merkel macht Wahlkampf für Sarkozy and Griechenland sträubt sich gegen EU-Aufpasser). Which means one thing only: the great propaganda spin machine is now on, and its only purpose is to provide Germany a buffer of "having done everything in its power" to prevent the now inevitable Greek default. Which, incidentally, means that a Greek default is inevitable. Because at this point once the default floodgates open, the question will be not where the bonds will trade, but just how big the impairment on the European DIP (aka Troika bailout package) will be..."
at http://www.zerohedge.com/news/cost-second-greek-bailout-raised-%E2%82%AC145-billion
