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Damn it people, did you not hear to the Prime Minister "This is just empty speculation. The country is fine, I promise, fine, I promise, fine, I promise..." ad chapter 11.
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Tee hee! this is it for the European union as well. Good night, Irene.
How is your Credit Card today? the Germans are having 4.000.000.000,-€ Cash at the Banks.Cash.Italians also.
Good Luck.
C'mon, now people, there's nothing to see here, move along. . .
Go, tell the Spartans, stranger passing by, that here, 400 bps were breached.
The difference is that Thermophylae was a highly defensible position.
Yet they all died and had to be bailed out by the Athenians.
Will someone please pass the grease?
soros says short gold
I don't mind the volatility b/c I like to sell/buy calls on my gold stocks.
The thing about a true gold bug is that they usually hold physical gold as an asset protection not as an instrument of speculation. The ones I know who do a little of both tend to be extremely cautious about the speculative part. I don't see them getting wiped out like stock holders do.
It's very doubtful that we're in a gold bubble yet. There are some great articles on Financial Sense about it.
Agree gold bugs hold physical. Soros is talking to the unwashed masses who "trade" the GLD. A true goldbug would probably tell you that your implicity assumption of a market in perp, that is paper derivatives, is invalid. Who is to say
Real goldbugs (people who understand the implications of our current predicament) are praying for a crash in the gold price (in FRN's).
Nothing would make them happier.
Real goldbugs love paper market manipulation.
Because the end result is more physical in our possession.
Plain and simple.
Thanks for caring.
Soros will have to take it out of my cold dead hand (quite possible)
Who's the shark buying naked?
A month from now 400 will be a long forgotten dream.
After all we've seen over the last couple of years - when someone says everything is fine - it ain't fine.
The Greek's need to redirect all of their creditors here:
http://www.youtube.com/watch?v=rvYZRskNV3w
To TD:will you be kind enough and give us the link to the sight where CDS qoutes are?U put it once here and forgot to "favorite it"...
From Kathimerini, English version:
Risk on Greek debt keeps rising Denial of China deal sends spread of Greek bond yield over German to new high
Greek bonds fell to a fresh record low yesterday, reflecting plummeting investor confidence in the country managing its fiscal woes, after the Finance Ministry denied press reports that it was about to sell a chunk of government debt to China.
The ministry denied a report published in the UK’s Financial Times saying that the government had chosen investment bank Goldman Sachs to sell up to 25 billion euros of Greek bonds to China but reiterated plans for an investor roadshow in Asia.
Greek government bond prices tumbled in response to the denial.
Traders have been hoping that a major deal with China could help to get Athens through its worst finicial crisis in decades as some 20 billion euros of Greek sovereign bonds come due in April and May.
“There is no explicit or implicit agreement of the Greek government regarding the purchase of Greek bonds or Greek assets by investment funds in China or elsewhere,” the Finance Ministry said in a statement. “There is no mandate to an investment bank to negotiate in this direction on behalf of the Greek government.”
The spread of the 10-year Greek bond yield over German Bunds, a measure of the risk investors see in holding Greek debt, ballooned 50 basis points to 361 bps – its highest level since Greece adopted the euro currency in 2001.
Goldman Sachs declined to comment on whether it was targeting Chinese investors with Greek debt.
A source familiar with the situation said that while Goldman was keen to do further business with Greece, there was no project under way to place debt specifically with Chinese investors.
The cost of insuring Greece’s sovereign debt against default also rose to 350,500 euros per 10 million euros of exposure, edging close to an intra-day peak around 358,000 euros set on January 21, according to five-year credit default swap prices from CMA Datavision.
The cost was up from 324,800 euros at the New York close on Tuesday.
Spain may pose bigger threat to eurozone
New York University professor Nouriel Roubini said he’s never been more pessimistic about the future of the European monetary union, saying Spain poses a looming threat to the euro region holding together.
“Down the line, not this year or two years from now, we could have a breakup of the monetary union,” Roubini told Bloomberg. “It’s a rising risk.”
Economies including Spain and Greece are threatened by fiscal imbalances and declining competitiveness, Roubini said. Membership in the eurozone means they can no longer devalue the currency to export their way out of recession, he added. Roubini said that for all the focus on Greece, Spain may eventually pose a bigger threat to the eurozone because it’s the region’s fourth-largest economy and has higher unemployment and weaker banks. Spain’s jobless rate is more than 19 percent, almost twice the EU average.
“If Greece goes under, that’s a problem for the eurozone,” he said. “If Spain goes under, it’s a disaster.”
Bankruptcy talk rejected
As Greek bonds continued to take a beating yesterday, Luxembourg’s Jean-Claude Juncker, who leads the group of euro-area finance ministers, said there is no risk of the Greek state going bankrupt.
“The risk of a bankruptcy in Greece doesn’t exist,” Juncker said at an event in Luxembourg yesterday. “It’s a hypothesis I totally exclude. Greece must know and does know that it has to make very serious consolidation efforts of its public finances, which it is doing,” he said. “I object to two eventualities that won’t happen: a state bankruptcy of Greece and an exit from the eurozone [that is] based on an absurd theory,” Juncker said.
Meanwhile, billionaire investor George Soros said in Davos, Switzerland, that while Greece’s fiscal crisis is highlighting weaknesses in the euro region’s political structure, there is a “strong force” holding the bloc together.
>>Roubini is off: neither Spain nor Greece pose systemic risks for Europe. He has no idea about the state of Spanish banks (some of the best in the world).
"The ministry denied a report published in the UK’s Financial Times saying that the government had chosen investment bank Goldman Sachs to sell up to 25 billion euros of Greek bonds to China but reiterated plans for an investor roadshow in Asia."
I had to read that sentence a few times to let the idiocy of it sink in. If they are denying it vehemently, it is probably already in progress. I can see that Greece is doomed merely by accepting advice from GS ("where should I insert the blood funnel?"). Why would the Chinese (or anyone else, for that matter) want to buy Greek bonds--IOUs from people who are already waaaaay over their heads? They'd be much better off trying to trade with China: olive oil, fish, timeshares in Santorini, something tangible for Chrissakes!
“The risk of a bankruptcy in Greece doesn’t exist,” Juncker said at an event in Luxembourg yesterday. “It’s a hypothesis I totally exclude. Greece must know and does know that it has to make very serious consolidation efforts of its public finances, which it is doing,” he said. “I object to two eventualities that won’t happen: a state bankruptcy of Greece and an exit from the eurozone [that is] based on an absurd theory,” Juncker said."
I cannot trust a man with J-U-N-K in his name. The insanity of arguing against a fact. Greece (and a lot of other places) owing more than they can even service interest on. That, my friends, is deader than a mackerel. Nice to see eurocrats will try and redefine dead (repeatedly) so the game won't end. The EU has turned into an awful swingers' menage-a-gang, with some of the participants had some rather bad, undisclosed (financial) STDs and now risk infecting everyone else who stays around.
As for Soros, I think he's a vampire squid in his own right.
Soros is banking on the Chinese free floating the yuan. All his assumptions are based on that folks.
Won't that increase the value of the yuan on the worlds market and therefore increase Chinese buying power for all commodities including Gold
eventually yes, but I was thinking about it last night. It depends upon the circumstances. If gold is freefalling in a deflationary environment you are betting off holding the renminbi now vs the dollar.
Well in my opinion when there is a true shit storm coming there is only one protection and it ain't a condom
Do governments launder money?
Drugs brings more money to Mexico than oil
More money flooded into Mexico from the illegal drugs trade than was earned from the country’s crude oil exports last year, it has been claimed.
By Our Foreign Staff
Published: 7:23PM GMT 24 Jan 2010
The country’s drugs cartels, which control most of the cocaine and methamphetamine smuggled into the United States, are estimated to have brought $25-$40 billion (£15-£25 billion) into Mexico from their global operations in 2009.
A survey of analysts by the Reuters news agency estimated that as a result the drugs trade in Mexico is likely to have made more money than was earned by the state oil monopoly, Pemex, from exports of crude - the country’s single biggest legitimate foreign currency earner.
The influx of drugs money, mostly from the US in $100 bills, mostly finds its way on to the books of businesses including restaurants and construction firms as drug lords try to legitimise their cash through money laundering. It has even believed to have propped up the country’s banking system, helping it ride out the financial crisis and aiding the country’s economy.
But banking secrecy in Mexico has stymied attempts to seize criminal earnings. A US Treasury official said Washington had only succeeded in freezing $16 million in suspected Mexican drug assets in almost a decade.
Link: http://www.telegraph.co.uk/news/worldnews/centr
alamericaandthecaribbean/mexic
o/7067556/Drugs-brings-more-money-to-Mexico-than-oil.html
and
Mexico’s Bank May Buy Dollar Reserves From Market (Update2)
Jan. 28 (Bloomberg) -- Mexican central bank Governor Agustin Carstens said officials may buy dollars from the market as part of a plan to boost currency reserves and gradually exit a $47 billion credit line with the International Monetary Fund.
http://www.bloomberg.com/apps/news?pid=20601087&sid=a_B2VPXm.BYo&pos=7
If the US would like a free pass on a new bull market it would end the war on drugs. It's not like people that want drugs can't get them, might as well regulate it, might as well securitize it, might as well tax it. It's a no brainer. We need to wake up, get practical, and cut the bs.
One, two, three and to the four hundreds
Greece CDS being bought on the floor
Ready to make an entrance
So back the truck up
(Cause you know we're
Bout to rip shit up)
Gi...mme some protection first
So I can bust this bubble
Petani and Little Bannana together
Now you know there in trouble
Ain't nothin but a CDS thang, baby
Debt burdened country it's so crazy
Greek defaults are the contracts that pays me
Unfadeable, so please don't try
To fade this (Hell, yeah)
But, uh, back to the problem at hand
Perfection is perfected
So I'm a let em understand
From a young CDS perspective
You need to insure this bitch
It's your only contraceptive
You never know
She could be earning her man,
And learning her man and at
The same time burning her man
It's like that and like this
And like that and, uh
It's like this and who
Gives a f#ck about those
So just chill til the next episode
40 or so traders hanging around SHORTING this thing watching the panic happen
http://hitthebid.ning.com
Love it!
Baghdad Bob part 2!
In the fall of 2008, the correlation community, the de facto long-base of the
CDS market, had been crippled by Lehman's bankruptcy and the de-leveraging that
ensued. Therefore the CDS market wasn't anchored and shorts had their way with
shorting CDS
-> CDS spreads don't really affect KO's operating performance but they can
cause a self fulling prophecy in financials
* Are we seeing the same thing with Greece's recent CDS performance?
I DOUBT MOST OF YOU PEOPLE EVEN KNOE WHAT SPREAD IS AND WHAT REPRESENTS 400// TASSOS
Perhaps. But I do KNOW how to spell "know", and I do know where the CAPS LOCK key is located on my Mac.
Thanks.
Perhaps. But I do KNOW how to spell "know", and I do know where the CAPS LOCK key is located on my Mac.
Thanks.
You don't seem to be able to figure out how to only post a comment once though, genius.
This is the final blowup for the euro.. The Fed has wanted this for the longest.
You see Europeans should have never gone up against King Dollar..lol
Its actually a Strong Euro that finished them off... bravo!
High debt and no jobs or exports.
Hello,
Could you please tell me the Bloomberg index ticker for the 5Y greece CDS? (so that I can check it on bbg website)
Thanks,
http://www.markit.com/cds/cds-page.html
Then just click on the sovereign tab.