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Rejected: Germany Throws Up Over Greek Extension Proposal

Moments after we reported that stocks were delighted to price in yet another Greek resolution (even if they would be loath to reprice the reality), both Bloomberg and Reuters poured cold water over the HFT servers in Mahwah with the following headlines:

  • GERMANY REJECTS GREEK EXTENSION PROPOSAL, GOVT OFFICIAL SAYS
  • GREEK LETTER DOESN'T OFFER SUBSTANTIVE SOLUTION, GERMANY SAYS
  • GREEK LETTER NOT IN LINE WITH AGREED EUROGROUP CRITERIA: JAEGER
  • GREEK PLAN SEEKS BRIDGE FUNDING W/O FULFILLING PROGRAM: JAEGER

In other words this is precisely what we warned first thing today when we said that "as we first reported two days ago when redlining the original, Moscovici, and final Eurogroup draft proposal, what Greece is requesting is merely a return to the original, "agreed-upon" language formulation. The problem is that now that Europe officially threw up on that language, conceding to the Greek bailout proposal would effectively see the European Goliath bested by the Greek David, something which Germany's Schauble will hardly agree to. "

And sure enough, Germany did not.