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PIMCO's El-Erian Dissects Greece: "A Shift From Interest Rate Exposure To Credit Exposure"

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Fri, 01/29/2010 - 17:54 | 211414 SDRII
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So what is his outlook for NY, FL, CA, IL, NJ and what is the new normal on the risk free rate?

Fri, 01/29/2010 - 18:07 | 211421 Dixie Normous
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Hey Tyler,

 

Little off topic but it's good stuff about Zero Hedge:

http://blog.ctnews.com/teribuhl/2010/01/28/breaking-news-morgan-stanley-...

ABout the writer: "She resides in lower Fairfield County and earned an accounting/business degree from the University of Southern California. She believes in free markets — but don’t let her catch you abusing them or you’ll end up in one of her stories."

Bwahahahahahaha


Fri, 01/29/2010 - 18:07 | 211429 Anonymous
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Keep up the good work, ZH.

Sat, 01/30/2010 - 01:45 | 211737 MrPalladium
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Tyler, there is an exception under copyright law for comment or criticism. You can quote or reprint relevant parts of documents, but you must comment upon their logic and reasoning.

Plagiarism is a non-starter from a legal perspective, but the biggies will argue that by posting copies of their documents in full, you are using their intellectual property to gather eyeballs and advertising revenue for yourself, and that is a problem.

Remember comment and criticism, and only copy the portions that are relevant to your own work.

I would argue that research pieces are "advertising," and therefore should be considered to be in the public domain, since broad distribution - with attribution - by third parties gives value to the publisher of the "ad." It is an agressive argument from a legal perspective, but neither Morgan Stanley or Pimco ever gives away anything of real value in its public pronouncements, as they always have acted upon their views prior to publication. But if they are specifically pricing and selling the research, then the "public domain" argument is probably a loser.

Sat, 01/30/2010 - 19:50 | 212099 Anonymous
Anonymous's picture

Does US copyright law apply in Sweden or for that matter Liechtenstein?

Server is hosted at www.prq.se.

Good luck with that.

Fri, 01/29/2010 - 18:02 | 211423 Anonymous
Anonymous's picture

WHY has Bof A's website been DOWN ALL DAY?????

website of Bank of America has been down the whole morning and until now, the Bank of America website has not yet been put into service.

Some Bank of America website said that they can access their Bank of America accounts through mobile banking using their iPhones while others say they cannot.

Another user said that Bank of America’s mobile banking part of the website is accessible through a portal https://sitekey.bankofamerica.com

Why is Bank of America website down? Some people said that Bank of America website maybe a subject of cyber hacks while some say it maybe a tactic of Bank of America to get more fees from late payment of credit cards.

Well, anyways, we really need to hear from Bank of America and explain their reason to their valued customers why is their website down.

For one, a bank’s website should never be down for more than 2 hours. Second if this is a website maintenance, Bank of America should have notified their customers beforehand, and third, somebody from Corporate Communications Department of Bank of America should explain the reason why.

Fri, 01/29/2010 - 18:10 | 211433 xamax
xamax's picture

Surely an interesting piece from well respected El-Erian of Pimco BUT:

No matter which view you have on Greece: IT WILL BE BAILOUTED by the European Union and in a few days, nobody will speak anymore about Greece. They did the same with Dubai, they will do the same in the US with CA and all the other states. The debt bubble is growing a bit more and I hope I will be dead or on a desert island the day it will burst.   

 

Fri, 01/29/2010 - 18:23 | 211448 greg merrill
greg merrill's picture

When there is a bailout, the markets will breath a deep sigh of relief, rebound higher, and I can unload some more long positions and create some short positions that got away from me this month.

Should I send the chocolates and roses of thanks to the Greeks or the Germans? 

Fri, 01/29/2010 - 18:43 | 211473 xamax
xamax's picture

you certainly adress an interesting point: one can even make bucks on this bailout on the back of.........the taxpayer !

Send your chocolates to Trichet or even Benron as he certainly has his fingers in the matter. BTW, I dont know why anybody sees Germany as the strong piece of Europe. They are as weak as France (where public debt also explodes) or the other PIGS of this fantastic construction called European Union.           

 

Fri, 01/29/2010 - 18:11 | 211434 Mr Lennon Hendrix
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End of game chant, "Its all over!" comes to mind.

Fri, 01/29/2010 - 19:38 | 211540 seventree
seventree's picture

"socio-political problems" ... how delicately phrased ... does that mean mobs in the streets and colonels in charge?

In any case who the HELL is buying these bonds? Even under the most benign scenario I can't imagine this paper being worth much in the end.

Fri, 01/29/2010 - 19:51 | 211552 Anonymous
Anonymous's picture

Who is buying these bonds?

There was talk that hedge funds bought, in part on the supposition that China was taking a position. I believe that rumor was false...

an' now deyz payyin'

Or maybe the China buying rumor was started in Greece, a sort of latter day Trojan Horse, if you will....

Fri, 01/29/2010 - 21:52 | 211632 Anonymous
Anonymous's picture

First step in collapse of the Euro. Germany must be pissed.

Fri, 01/29/2010 - 22:43 | 211666 phaesed
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Looks like we all know the first nation to be part of the New World Governmental Order... who in the EU is next?

Fri, 01/29/2010 - 23:06 | 211679 Anonymous
Anonymous's picture

I pointed this out a fortnight ago.

http://www.zerohedge.com/comment/reply/45366/168606#comment-168606

Always trust content from Anonymous! ;)

Btw, the fact that Greece's access to soft ECB credit, and thus its ability to avoid default without a (more open) bailout, now lies completely in the hands of Moody's is (partly) another move in the game of chicken. It's much easier politically for the EU to set up the cold-hearted Yankee capitalist to play the axeman. "So sorry, friends. If only we could overlook the unfeeling, objective rating requirements! But you know there is nothing one can do about these things."

Sat, 01/30/2010 - 04:51 | 211769 Anonymous
Anonymous's picture

Read the thing. It says nothing!!!

Sat, 01/30/2010 - 22:50 | 212243 bc0203
bc0203's picture

To someone considering investing in sovereign/government debt, particularly Greek debt, their recommendations seem pretty straighforward:

  1. This is not yet the time to be buying Greek debt - wait till they are against the wall and better terms can be negotiated (i.e. after a default).
  2. Start looking for pattterns that can be applied to other types of government debt - this is not going to be an isolated event.

What they're basically saying is, "proceed with caution - there isn't enough information to make a good investment decision."

Do NOT follow this link or you will be banned from the site!