Oh I do enjoy watching a contest between two sides I dislike equally, vying to see who can pee the furthest! (BTW, Telegraph, where do you keep finding these marvelous pictures of tattered EU flags?) " .... the head of the eurogroup of finance ministers warned Greece may need to impose "Cyprus style" capital controls." Ah yes indeed. Consistently sound advice from a Great Fraud of Europe bureaucrat. Capital has been flooding out of Greece for months. They have no money and are reduced to raiding pension funds (the equivalent of stealing grannie's coin purse). In any case, Greece's recent answers to most GFoE 'warnings' have been near-unprintable so what's the likely response to this one going to be? As summer nears I believe I'll break out a camp chair, pop some popcorn and prepare to watch this show with interest... Greece should NOT have been able to join the EU under the rules, But the chaps who fiddled the way for Greece are now the chaps who are profiting from the interest payments Germany has earned 2 billion euros so far. The banks have already been paid out by the tax payer and got away scot free. The greeks need to perform as they pledged, stuff the repayments and default. The Gov't of Greece is there to protect the Greek people, not run them into the ground. Watch out it is coming to the rest of us soon, who ever heard of a "bail in" to help a failing business? i.e bank. that is the new rule in the EU, May soon appear in the UK....
So, not a single foreign investor at this morning's Greek T-bill auction - same as last week. Only Greek banks were arm-twisted into rolling them over again. Hand to mouth stuff - settlement date for today's bids is Friday, when the prior T-bills mature. No new money was raised, simply refinancing. This gives the ECB a massive problem - as not even a shred of 'market access' to support a decision to extend ELA. It would be demonstrably financing the Greek State if it increases ELA tomorrow (other than offsetting capital outflows, as before)..
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