Goldman's Complete Summary Of The European Council Decisions

Tyler Durden's picture

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NoRestForTheWicked's picture

The Goldman 1-pager is longer than the EU 4-pager.  And it has more details too.

Derpin USA's picture
Kickin' the can (Kickin' the can) Kickin' the can (Kickin' the can) I feel fine I'm talkin' bout peace of mind I'm gonna take my time I'm gettin' the good sign Kickin' the can (Kickin' the can) Kickin' the can (Kickin' the can)
All is chosen's picture

Financial institutions can elect to exchange their bonds with four different long-term debt instruments.



Like ice cream flavours. Yawn. (edit: weird software)


writingsonthewall's picture

I don't understand - if you lent Jack $3000 - then Jack lost his job and voiced the possibility that he might not be able to pay you back - would you lend him another $3000 to tide him over until he gets another job?


...and another $3000?


.....and another $3000?


The whole situation is bizarre - Greece don't want to borrow the money but the EU is forcing them to.

Imagine if the banks were forcing loans on the unemployed so they could ensure that they would be on the 'payback' until they die.

No Bid's picture

That's a good analogy.  IMO this whole thing is just protecting the EU from an immediate dose of reality.  Eventually they'll get it, but it cannot be forced on them anymore.  Their economies are still awful, and the PIIGS are still a mess.  Feel good story of the week, but once the cloud of euphoria is gone the end of the road can still be seen.

oogs66's picture

the new loan should be at lower interest rates too, because ya know, Jack doesn't have a job

ItFarmer's picture

Don't worry an ex GS alumni will manage this suitably.

note Draghi means dragons in italian

you will be burned

Everybodys All American's picture

Key take away is the IMF is all over this which means the US tax payor. The credit default swaps are no longer useful tools. If the CDS doesn't get paid off on this then when in the heck would they?

Negro Primero's picture

A lot of confusion yes, but this guy puts it simple:

"Ratings Agency Fitch Starts the Greek Circus Act

It has put Greece into "restrictive default".

Translation: Greece has defaulted.

Try calling up your bank and telling them that you have decided that you won't pay up on your revolving credit for 20 years, that you would like your interest rate cut in half in the mean time and that you need an extension on your credit line because you can't pay your rent. That's essentially the default/bailout deal Greece got."

oogs66's picture

why does the private sector pariticpate?


MFL8240's picture

When does this bullshit end and the normal buisness cycle return?  I would guess the answer is never.

All is chosen's picture

Checks the Mayan calendar - Yep, 'never' is correct. Just as well. Perhaps our great leaders already know this (no, of course I don't believe that), hence the current fun & games.. 

CrashisOptimistic's picture

A default occurs when an interest payment is missed.

When that miss is documented, the swaps will trigger.  Citibank bought some bonds that they will refuse to exchange for longer term debt.  They also wrote swaps.  They will wait for their bonds to default from no interest payment in order to collect on their swaps.

This strategy is underneath all the gobbledygook.  A lot of folks have created very profitable hedges in this matter and they will force default.

FMR Bankster's picture

Let's see. Euro's throw more money down a rat hole and German business confidence falls. (no surprise there I guess)Economic growth falling across Europe, Japan in depression, the US staggering along at 1.5% (all goverment), Iran won't ship any more oil to India because they are not getting paid and China's industrial index falls into contraction. Sh*t, I think they had a word for this in the 1930's.

Buyemall's picture

Thanks for posting this Tyler

It looks like Francesco is  a bit reserved on his comment and it is not about not having all the technical details.

and another thing

By now we are used to the European under - sizing and acting at the last moment after "long hour meetings and tough negotiations".