Greece forced to tap emergency fund

[FLPanhandle]

Source: The Telegraph

In a move described as the "last stand for Greek banks", the embattled country's central bank activated Emergency Liquidity Assistance (ELA) for the first time on Wednesday night.

Raoul Ruparel of Open Europe told The Telegraph: "The activation of the so-called ELA looks to be the last stand for Greek banks and suggests they are running alarmingly short of quality collateral usually used to obtain funding."

He added: "This kicks off another huge round of nearly worthless assets being shifted from the books of private banks onto books backed by taxpayers. Combined with the purchases of Spanish and Italian bonds, the already questionable balance sheet of the euro system is looking increasingly risky."

Traders argued that the worsening crisis in Greece was the real driver of market concerns. There are particular concerns that the political will to solve the crisis is waning, particularly in Germany.

Read more: http://www.telegraph.co.uk/finance/financialcrisis/8723588/Greece-forced-to-tap-emergency-fund.html

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How long before the Germans decide to cut the Greeks loose from the Euro. I think it would be best for both countries in the long run instead of continually trying to prop up something that is destined to fall.

[dkf]

1. This was last Thursday.

Funny they mentioned the fall in the DAX on that day but I don't recall hearing this.

[xchrom]

2. Recommend

[No Elephants]

3. K & R. (Sounds like TARP)

"This kicks off another huge round of nearly worthless assets being shifted from the books of private banks onto books backed by taxpayers."

[FLPanhandle]

5. Yep.

That's the line that struck me too.

[JustABozoOnThisBus]

4. Welcome to the J.P.Morgan Parthenon

or the Standard & Poor's Temple at Delphi.

It's about time to sell naming rights in order to bring in more money.

If it works for American sports venues ...

:hi:

[sarcasmo]

6. More riots for Greece.

[Recursion]

7. This is why 1 currency with 17 fiscal policies will never work

Greece needs to monetize its debt. Right now. But that will kill Germany's recovery.