Skip to main content

Greeks Might Just Pull This Thing Out

"Some promising things have happened."
  • Author:
  • Updated:

Alexis Tsipras may yet escape this guy's fate.

Europe’s long continental nightmare isn’t at an end. It may not even be at the beginning of the end. But, after Athens proposed making employers pay some more into its pension system so that it could pay less, it is, perhaps, the end of the beginning.

“Some promising things have happened, including today’s talks,” said European Council President Donald Tusk. “The latest Greek proposals are the first real proposals in many weeks….”

A first assessment from the institutions overseeing Greece’s bailout—the European Commission, the European Central Bank and the International Monetary Fund—found the new plans to be “broad and comprehensive,” said Jeroen Dijsselbloem, the Dutch finance minister who presided over the talks….The Greek proposal has been described by Greek and European officials as possibly the country’s final chance to unlock its bailout program and avoid a potentially catastrophic exit from the eurozone. Negotiations between the creditors and Greece would now continue “with a view of reaching a final agreement later this week,” Mr. Dijsselbloem said.

Greek Bailout Proposals Lift Hopes of Deal [WSJ]


By myself (Own work) [Copyrighted free use], via Wikimedia Commons

Greeks Too Numb To Celebrate Bailout End

Plus, it’s not like it’s really over or anything.

This Is The Last Greek CDS Post Ever*

There's that famous scene in Liar's Poker - are there non-famous scenes in Liar's Poker? - where the much maligned equity department sends a program trader to impress Michael Lewis's jackass fellow Salomon trainees with his brilliance. It does not work: He lectured on his specialty. Then he opened the floor to questions. An M.B.A. from Chicago named Franky Simon moved in for the kill. "When you trade equity options," asked my friend Franky, "do you hedge your gamma and theta or just your delta? And if you don't hedge your gamma and theta, why not?" The equity options specialist nodded for about ten seconds. I'm not sure he even understood the words. ... The options trader lamely tried to laugh himself out of his hole. "You know," he said, "I don't know the answer. That's probably why I don't have trouble trading. I'll find out and come back tomorrow. I'm not really up on options theory." "That," said Franky, "is why you are in equities." This is totes unfair to the actual equity vol traders I know, but I kind of felt like that guy after talking to a CDS lawyer yesterday about this craziness in Greece. It went something like this: Me: As an equity derivatives guy, I expect derivatives to transform into derivatives on whatever their underlying transforms into. And I'm troubled by them not doing that. Lawyer: You should not be troubled by the concept of cheapest to deliver. Yeah fair! That's the thing about CDS. Dopes like me think of it as just a rough proxy for default risk but when things get real like with Greece it turns into a cheapest to deliver convexity play and then I slink away in embarrassment. But yeah, as a matter of rough justice, if you can go be opportunistic about finding the cheapest to deliver bond, Greece can go be crappy about leaving you with only expensive to deliver bonds. I guess.

Greek Deal Could Be Imminent, Or Not

Germany and France are going to agree to disagree on this one.

Greek Deal Probably Not Worth Making

Pretty much the definition of a situation.