Hungary CDS Off To The Races: +60 On News IMF Mission Chief Going To Budapest For Informal Talks

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Thu, 06/03/2010 - 13:00 | 392112 BernankeFed
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This sounds eerily similar to informal talks IMF was having with Greece before its full-blown supposed bailout.  Hungary is hungry for dollars like most of eurozone, Iran, Tom Brady's wife etc.

Thu, 06/03/2010 - 13:03 | 392114 doolittlegeorge
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and of course Germany itself had to pull an auction of its debt quite recently as well.  Hmmm.  How long before "the Adolph Eichmann of Finance" known as the IMF throws Bavaria under the bus?  Indeed I think the IMF may have been "out of ammo" for quite some time now.  It certainly goes a long way towards explaining why this so called "crisis" (20% percent rates in Greece is a crisis?  Can hardly wait to hear what they think is actually bad!) keeps churnin' and burnin'.  Welcome to what they called in the Cold War "the Domino Theory"--only we're talking "the capitalist version" this time.  There appears to be a "flaw" in the "programming" although why anyone should be surprised is beyond me.  Karl Marx said it best:  "there's a contradiction."  He just didn't point to the right one.

Thu, 06/03/2010 - 13:13 | 392151 papaswamp
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they have some gold left to unload before they run completely out

Thu, 06/03/2010 - 13:10 | 392131 taraxias
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The world is drowning in debt.

Thu, 06/03/2010 - 13:10 | 392132 The Franchise
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Don't they pay attention to the "pickup truck indicator" over in Hungary? What is wrong with them?

Thu, 06/03/2010 - 13:12 | 392145 Joe Shmoe
Joe Shmoe's picture

I missed that one.  Please enlighten me?

Thu, 06/03/2010 - 13:12 | 392138 carbonmutant
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Good find Tyler...

Thu, 06/03/2010 - 13:12 | 392143 papaswamp
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And I thought today was going to be boring.

Thu, 06/03/2010 - 13:13 | 392146 Roy Bush
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chug-a-chug-a-chug-a chug.....I hear the money a-printin'!

Thu, 06/03/2010 - 13:13 | 392152 silvertrain
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No need to worry people, just take it easy..The IMF is going to open an SDR line of credit shortly and all will be well this evening..


Thu, 06/03/2010 - 13:19 | 392164 Trichy
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Don't know about Hungary but a majority of the outstanding corporate bonds in the east are denominated in Euros. Look for Austrian banks blowing up soon.

Thu, 06/03/2010 - 13:25 | 392181 papaswamp
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whoa Hoeing just said he pushing for the rates to be jacked to 1% by end of summer.

"WASHINGTON (MarketWatch) -- Thomas Hoenig, the president of the Kansas City Federal Reserve bank, laid out on Thursday his proposed plan to take short-term interest rates from near-zero to 4.5%. In a speech in Bartlesville, Okla., Hoenig said the country pays a high cost for low interest rates, suggesting that the financial crisis stemmed from the very low interest rates of 2002-2005. Hoenig said the Fed should aim to get the federal funds target rate to 1% by the end of summer and then pause to assess the outlook. This should be followed by moving rates to 3% "reasonably quickly" and then a final stage bringing rates to 4.5%. Hoenig said the most recent economic data hint that the economy may be stronger than expected. He said inflation would likely to remain low for the next year or so, but then drift higher"

Thu, 06/03/2010 - 13:29 | 392197 Trichy
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Good idea, why don't they just default straight away.

The interest payments would be 200% of tax revenue. 

Thu, 06/03/2010 - 13:43 | 392211 Leo Kolivakis
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Another CDS

Thu, 06/03/2010 - 13:43 | 392242 MrTrader
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@Leo : Bad world we're living in. Maybe Debrahlee's "arguments" need to be regulated ?

Thu, 06/03/2010 - 13:41 | 392234 TonyV
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It is not the same situation as Greece. Hungary is not part of Eurozone, they can print their own money. The question is - How do you short Forint?


Thu, 06/03/2010 - 13:44 | 392245 Trichy
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Not really. That's the problem if their corporates have Euro denominated debt. If you print you bankrupt them all.

Thu, 06/03/2010 - 14:03 | 392314 TonyV
TonyV's picture

I see your point. Thank you

Thu, 06/03/2010 - 14:15 | 392339 Trichy
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I'm not 100%, but all their neighbours have done so, courtesy of Austrian banks.

Thu, 06/03/2010 - 14:27 | 392358 Hephasteus
Hephasteus's picture

Let me guess. The IMF will offer the same deal as america got during the last great scam depression. Money in exchange for the ability to tax citizens directly. Although they blew that by not getting it ratified.

Nope just figured it out. Everybody's bond auctions fail. The IMF comes in and collects carbon credit taxes from all the broke countries. Nobody asks a single citizen what they want to do. The citizens form into a unified whole of hatred and disgust and blow up the entire galaxy with our minds.

Thu, 06/03/2010 - 15:44 | 392549 Temporalist
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Having gone to Budapest not long ago, the whole city seemed to be in a general malaise, waiting for something to happen.  They are not lazy people but have been at the crossroads of many political and economic influences, including communism, and have not yet recovered fully.

I'd recommend it for its spas and cuisine and while it does have a long history you have to search it out.  Of course the Opera House is pretty famous.

Thu, 06/03/2010 - 16:12 | 392615 dollydog
dollydog's picture

things aren't looking great for Hungary at the moment. but expecting it to be Athens mark 2 is a little over the top. seriously.

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