Wednesday, February 22, 2012

Zerohedge Shocker: Greece Bailout Nothing But Greek-Funded Bailout of European Banks!

Tyler Durden is on his game today, discovering some shocking details in the fine print of the latest and greatest Greek bailout.  Not only will Greece not receive a single penny in the latest bailout, but the terms actually require Greece to fund the escrow account account slush fund used to bail out European banks!  You read that right...the latest Greek bailout actually is a GREEK FUNDED BAILOUT OF EUROPEAN BANKSTERS!!! 
Now we've seen it all.

First, as a reminder, even before the current bailout mechanism was in place, Greece barely saw 20% of any actual funding, with the bulk of the money going to European and Greek banks (of which the former ultimately also ended up funding the ECB and thus European banks). Furthermore, we already know that as part of the latest set of conditions of the second Greek bailout, an 'Escrow Account" would be established: this is simply a means for Greek creditors to have a senior claims over any "bailout" cash that is actually disbursed for things such as, you know, a Greek bailout, where the money actually trickles down where it is most needed - the Greek citizens. Here is where it just got surreal. It turns out that not only will Greece not see a single penny from the Second Greek bailout, whose entire Use of Proceeds will be limited to funding debt interest and maturity payments, but the country will actually have to fund said escrow! You read that right: the Greek bailout #2 is nothing but a Greek-funded bailout of Europe's insolvent banks... and the Greek constitution is about to be changed to reflect this!

Read more from TD:

And read the details in the fine print:

Eurogroup Statement Greece