Details On The "Transitory" Greek Default Emerge

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Thu, 07/21/2011 - 10:21 | 1476983 oogs66
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Merkel and Sarkozy, financial engineers extraordinaire?  Did they talk to any other particpants on this?  Other than Trichet who is up to his eyeballs on debt he bought on a whim?

Thu, 07/21/2011 - 10:33 | 1477011 TruthInSunshine
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OT - sorry - but this is bat shit crazy, and the sort of thing that makes me very angry. I consider myself a sophisticated person (whether it's true or not) and reserved, but this makes me 'want to break shit' - re the William 'let them eat iPad' Dudley:

07-21 10:13: US Senator Sanders says GAO found that NY Fed's Dudley received waiver to let him keep investments in AIG and GE as firms were rescued

Thu, 07/21/2011 - 10:38 | 1477058 hedgeless_horseman
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Fletch: Why? Did you steal the car?

Teenager: I sure did.

Fletch: Well, I'm not even sure that's a crime anymore. There've been a lot of changes in the law.

Thu, 07/21/2011 - 10:51 | 1477104 cosmictrainwreck
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perfect! lot of changes in Newton's Laws, too, apparently, as they're bound & determined to run all the indices towards NEW 52 WK HIGHS (soon, very soon) 

Thu, 07/21/2011 - 12:34 | 1477157 hedgeless_horseman
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07-21 10:13: US Senator Sanders says GAO found that NY Fed's Dudley received waiver to let him keep investments in AIG and GE as firms were rescued

"When you see that money is flowing to those who deal, not in goods, but in favors - when you see that men get richer by graft and by pull than by work, and your laws don't protect you against them, but protect them against you - when you see corruption being rewarded and honesty becoming a self-sacrifice - you may know that your society is doomed."

 

                                               -Ayn Rand

                                                Atlas Shrugged

Thu, 07/21/2011 - 10:50 | 1477098 Founders Keeper
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[...but this is bat shit crazy, and the sort of thing that makes me very angry.]---TIS

Stow that "bat shit" soldier---you'll need it later.

 

Thu, 07/21/2011 - 10:22 | 1476985 Cdad
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Good grief.  And by that I mean....good grief.

Would someone please politely ask the central planners in the ECB to simply sit down and shut up?  SD...you are closest...so....

Thu, 07/21/2011 - 10:34 | 1477036 HelluvaEngineer
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Uh, now that every short has been forced to cover, can we please roll over and flash crash already?  ZH readers aside, is anyone not balls to the wall bulltard long at this point?

Thu, 07/21/2011 - 10:46 | 1477085 Cdad
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is anyonenot balls to the wall bulltard long at this point?

Obviously, yes.

Thu, 07/21/2011 - 10:41 | 1477066 Bang Dae Ho
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ECB to simply sit down and shut up?  SD...you are closest..

once you need SD, he is not there....

but the ECB executives read and obey to my posts, so I do the job for now:

ECB, SIT DOWN and SHUT UP.

Thu, 07/21/2011 - 10:23 | 1476986 TradingJoe
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Meanwhile in Algo Land: NUTS ON FUMES! :)))

As to Europe: THEY ARE DEAD IN THE WATER!...And so is the US of A(bsurdistan)!

Thu, 07/21/2011 - 10:26 | 1476989 Cognitive Dissonance
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It is not a matter of if they fix the 'problem', only that they transport the problem to a future point in time. The assumption is always that time (aka 'growth') will solve all financial problems.

This is why there must always be growth. Because it is this growth that is 'solving' hundreds of years of 'problems' transported from the past.

Thu, 07/21/2011 - 10:37 | 1477054 Version 7
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One hears often times talking about how the levels of debt were much higher after the WWII and we make it out, etc etc. But that pre-supposes that a similar economic growth will again follow suit and naturally that's not the case this time around.

Thu, 07/21/2011 - 10:47 | 1477091 Cognitive Dissonance
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I've been thinking about this for a long time. And I suspect 'they' believe that with most of the world underdeveloped, that more growth is very possible given the right conditions.......whatever that means. Meaning there is still tremendous 'growth potential' assuming they can just get over this rough patch.

Of course this assumes essentially an unlimited energy source and of course an unlimited 'cheaper labor" source, even if that cheaper labor source rotates from country/region to country/region. This is why the so-called smart money is betting on China and India to be where the really explosive growth will be for the next 50 -100 years.

The USA will soon be considered transitory and expendable.

Thu, 07/21/2011 - 19:47 | 1479106 StychoKiller
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So, translated: Greece, whose assets will collateralize a Debtor In Possession loan funded by the EFSF, will first transfer all liens to the EFSF first, while the country is under temporary default.

And Greece will emerge from default within a few days?

This sounds like yet another ironclad European bailout plan: naturally the aftereffects of a "brief" sovereign default are so much more benign that those of a "non-brief" sovereign default.

 

A couple of thoughts:

1.  Transitory != Temporary (by any stretch of the imagination!)

2.  There's very few choices on how to emerge from "being a little bit pregnant":

  a. Have an abortion, i.e., debt forgiveness.

  b. Carry the child to term, i.e., enslave the Greeks for the next 18 years (until the child is fully grown)

3.  Continue to claim that everything the ECB/IMF/etc. is doing is sensible!

4.  Deny, deny, deny reality!

 

Place your bets (mine is on Au/Ag!)

 

Thu, 07/21/2011 - 10:43 | 1477077 blunderdog
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Greece has been around for a long time.  Maybe a 1000 year bond offering?

Thu, 07/21/2011 - 10:50 | 1477099 bigdumbnugly
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odysseus would just about be cashing in now...

Thu, 07/21/2011 - 11:23 | 1477228 Cognitive Dissonance
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:>)

Nope.

They will just force the poor bastard to roll it over for another 1000 years. Sleep tight Odysseus and don't let the bond bugs bite.

Thu, 07/21/2011 - 11:49 | 1477286 bigdumbnugly
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true.  most likely even the legendary odysseus would get bent over.

but he is greek after all...

Thu, 07/21/2011 - 13:52 | 1477852 FinalCollapse
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Yes- there was always growth to take care of this, but no more. Both EU and USA, are facing huge risks of decline or zero growth.It is uphill from this point on. They are kicking the grenade forward, it rolls back to their feet.

 

Thu, 07/21/2011 - 19:50 | 1479111 StychoKiller
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The EU is treating the Greeks like a bunch of blood-filled turnips!  Short of finding a vast pool of oil in the Aegean, they have NO WAY of repaying the fools that lent them all those Euros!  Skull, meet razor already!

Thu, 07/21/2011 - 10:31 | 1476991 hedgeless_horseman
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a default would only last for a few days

It worked for GM! *

 

 

*GM down -20.67% YTD, heading to ultimate support at $0...AGAIN!

NOTE: Does not include UAW pension savings

Thu, 07/21/2011 - 10:34 | 1476995 Dr. Engali
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If they would just let the sons a bitches default and get it over with we could get past this mess. Let the market divert it's capital and energy into good investments.

Thu, 07/21/2011 - 10:35 | 1477044 francis_sawyer
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If they would just let the sons a bitches default and get it over with we could get pat this mess. Let the market divert it's capital and energy into good investments

Ironically... That is actually what is probably happening right now...

If one is quietly exchanging their fiat into Au, Ag, food, guns, etc. as we speak, that is capital being diverted into what will prove to be a "good investment"... Others won't do so, an instead, waste their capital...

Frankly, the longer this game goes on, the more time you have to accumulate... So why fret about it?

If you use the story of Noah & the great flood as a parable... I doubt Noah himself woke up every morning wishing for the sky to open up... He was probably more than happy with the extra time...

Thu, 07/21/2011 - 10:44 | 1477081 Dr. Engali
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I'm loaded with all the above. I don't have as much gold and silver as I would like,but I'm getting there.

Thu, 07/21/2011 - 10:52 | 1477107 Cognitive Dissonance
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As much as my righteous indignation hates to admit this, there is still plenty of time to get ready. But that assumes we are getting ready on a daily basis. This is why I won't stop purchasing PMs, because others are not stopping as well.

Sooner or later supply and demand will win out.

Thu, 07/21/2011 - 10:57 | 1477118 Mec-sick-o
Mec-sick-o's picture

Ich habe die Geschichte!

Thu, 07/21/2011 - 19:52 | 1479117 StychoKiller
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Frankly, the longer this game goes on, the more time you have to accumulate... So why fret about it?

 

True enough, but we doesn't has to likes it!

Thu, 07/21/2011 - 10:24 | 1476996 No Bid
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What does the ISDA have to say about this?

Thu, 07/21/2011 - 10:26 | 1477006 papaswamp
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Ahhh the giant extend and pretend. Sorry bond holders but that bond you thought would yeild 7% will only yield 3.5%....in 15 yrs. Suka!

Thu, 07/21/2011 - 10:26 | 1477007 jkruffin
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This is a quote that should be on Headline News across the nation

 

If you voted for Obama in 2008 to prove you're not a racist, vote for anyone else in 2012 to prove you're not stupid!!!

Thu, 07/21/2011 - 10:41 | 1477068 gmrpeabody
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I like it!

Would be fun to have it on my bumper, just to see the guy behind me.

Thu, 07/21/2011 - 19:54 | 1479126 StychoKiller
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Sigh, miners just struck a rich vein of Stupid ore, also known as the Republicon and Decepticratic parties!

Thu, 07/21/2011 - 10:26 | 1477009 jmcadg
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EurUSD up 180. Complete cock.

Thu, 07/21/2011 - 10:27 | 1477010 bill1102inf
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What do the CDS held all over the planet say about this?????? hmmmmmmmm

Thu, 07/21/2011 - 10:41 | 1477067 Clowns on Acid
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20% reduction in NPV of all CDS out there? I know it is not in the original contract...but all contracts are transitory, just like inflation.

The Russians have to be laughing whilst drinking their cognac. It was so much easier (and profitable) to just default. But noooo...left wing facsist / socialist, feckin' pansies have to create the allusion that they smarter than everyone else, and deserve their DSK like status. 

Russia does not have to invade them to grab their assets, just charge them thru their gallic noses for nat gas and oil.

Nostrovia !!

 

Thu, 07/21/2011 - 11:01 | 1477139 Clowns on Acid
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20% reduction in NPV of all CDS out there? I know it is not in the original contract...but all contracts are transitory, just like inflation.

The Russians have to be laughing whilst drinking their cognac. It was so much easier (and profitable) to just default. But noooo...left wing facsist / socialist, feckin' pansies have to create the allusion that they smarter than everyone else, and deserve their DSK like status. 

Russia does not have to invade them to grab their assets, just charge them thru their gallic noses for nat gas and oil.

Nostrovia !!

 

Thu, 07/21/2011 - 10:28 | 1477012 magpie
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Disclaimer: No banker was harmed during this default.

Thu, 07/21/2011 - 11:00 | 1477122 Bang Dae Ho
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dup

Thu, 07/21/2011 - 10:58 | 1477123 Bang Dae Ho
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And there were no tests on animals or humans. Guaranteed there was no testing at all.

Thu, 07/21/2011 - 20:05 | 1479175 StychoKiller
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You get to figure out which ones apply to this program ;)

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Thu, 07/21/2011 - 11:00 | 1477131 cosmictrainwreck
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disclaimer not necessary...... it's a given

Thu, 07/21/2011 - 10:28 | 1477013 j0nx
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Seriously WTF? As the diceman once said, either you suck dick or you do not suck dick. There is no such thing as a partial, transitory or any other type of default. Either you default or you don't. Why are people even listening to this shit??

Thu, 07/21/2011 - 10:29 | 1477021 jkruffin
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Is there any such agencies left called "regulators"?  I mean, for the past 3 1/2 years now, these crooks just change the rules to their favor whenever they feel like it.  Is there any law left anywhere?  Sadaam and Bin Laden had nothing on these terrorists....

Thu, 07/21/2011 - 10:30 | 1477023 Kina
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My dog just took a transitory shit.

Thu, 07/21/2011 - 10:31 | 1477025 kito
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markets dont seem to be responding negatively about a transitory default. so does that mean they could be in the clear on this one?

Thu, 07/21/2011 - 10:31 | 1477027 spongeBOB
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Looks like "investors" are dumping the US treasuries to buy Greek bonds.

Thu, 07/21/2011 - 10:32 | 1477031 Wolf in the Wilds
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So who is going to pay for all this?  And market is a little presumptious that the parliaments in Netherlands, Finland and most important of all Germany is going to agree to this?  Changing the EFSF is tantamount to breaking Article 125 of the EMU constitution.  Doing this will guarantee Merkel getting kicked out of the Chancellor seat in Germany.  If she agrees, you are likely to see a massive rebellion in the Bundestag.  And market clearly does not know this.  This need to go through the parliaments of the above countries.  It is so easy to be stupid.

 

 

Thu, 07/21/2011 - 10:35 | 1477046 Quintus
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It's also likely to negatively impact the German Constitutional Court ruling in September on whether these bailouts are constitutional.  The more German money Merkel hands over, the less likely it is that she gets the ruling she wants.

Thu, 07/21/2011 - 10:44 | 1477079 Wolf in the Wilds
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Yes, and she knows it.  So what happens if this clause disappears from the final doc?

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