TEPCO: With $91 Billion In Debt, Got CDS?

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Sun, 03/13/2011 - 21:49 | 1048079 dryam
dryam's picture

This company is simply blowing up.

Sun, 03/13/2011 - 21:50 | 1048082 Monkey Craig
Monkey Craig's picture

ouch! look out below

Sun, 03/13/2011 - 22:25 | 1048241 whatsinaname
whatsinaname's picture

Just got an update from a friend in Japan. It seems the Western electric grid has a lot of spare electricity but works on a different frequency and cannot share with the eastern area which is crippled. Also, lots of food, water shortages in stores in Japan as lot of food comes from Northern region. Meanwhile, soya products costs soaring.

Sun, 03/13/2011 - 21:50 | 1048085 Bubbles...bubbl...
Bubbles...bubbles everywhere's picture

The word "harakiri" comes to mind.

Sun, 03/13/2011 - 21:56 | 1048107 Twindrives
Twindrives's picture

Rhymes with Kashkari, small wonder.

Sun, 03/13/2011 - 21:57 | 1048106 bob_dabolina
bob_dabolina's picture

te-te-te-te-teh...not going to have money much longer


Sun, 03/13/2011 - 21:59 | 1048111 Leo Kolivakis
Leo Kolivakis's picture

Sunday nights are all about chilling...enjoy!

Sun, 03/13/2011 - 22:10 | 1048136 Millivanilli
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Sun, 03/13/2011 - 22:10 | 1048138 John McCloy
John McCloy's picture

 This is what I have been looking for out of ZH all weekend. What is the CDS liability for a record earthquake, tsunami, nuclear meltdown ramifications for an advanced technogical society like the nation of Japan which already had massive debt and is 3rd in U.S. debt holdings? You better believe those interest rates will be rising since this nation needs cash ASAP. And that is why we are taught always to save for a rainy day..well the Japanese need their money Tim and you better have it available. 

   That is why naked CDO's need to vanish and unchecked leverage in the CDS market needto be permitted so long as the firms which insure this CDS are permitted to go bankrupt. Eventually if CDS insuring firms are allowed to go bankrupt perhaps people will force capital to be raised for these asinine financial products that create TEMPORARY PROFITS and rely upon taxpayer dilution and subsidization. 

   Get a clue Washington. Good job Tyler. And a word to the wise..there is a reason we are taught never to gamble above your head and it because eventually on a long enough time line everything that can possibly go wrong to cause insolvency eventually will when there is not a single counterbalance to reckless speculation.

Sun, 03/13/2011 - 22:28 | 1048253 dark pools of soros
dark pools of soros's picture

you really think TPTB are going to stop this rigged shell game before it totally rots the neighborhood??  It is complicated enough to fool 95% of the public so why change?  People will just think inflation 'happens'  and that Unions and Pensions are problem, or MENA unrest is the problem, or natural disasters, or whatever the hell comes next - no football...  it just keeps on giving over and over...there is no end until we start eating each other

Sun, 03/13/2011 - 22:43 | 1048347 John McCloy
John McCloy's picture

  One of the top news stories today on Yahoo "Will there be no football"

  No they will try and try to distract until the people no longer care about the luxuries they used to enjoy. And yes one of the largest scams every pulling on the citizenry was allowing people to believe that on top of them being overly taxed that that extra 2% inflation is acceptable. Bottom line is that people are not educated enough and it is preyed upon. 

Sun, 03/13/2011 - 22:07 | 1048141 pitz
pitz's picture

Got gold?  If basic infrastructure companies like TEPCO go insolvent, then certainly, the monetary system is fucked.

Sun, 03/13/2011 - 22:09 | 1048146 Michael
Michael's picture

It's one thing to present a reasonable assessment of the financial impact of the situation, and another to convey heartless indifference. You can feel the indifference in the tone of the reporters voices, see it their plastic smiles and attitudes. It's done in order to invoke the response their corporate overlords want to convey for their benefit.  It just disgusts me. Remember, this is not the attitude the rest of of world sees on TV. Other world news is orders of magnitude better than the US.

This is the biggest beef I have with the the US mainstream media. Our citizens parrot the indifference heard on TV which makes it worse.

Sun, 03/13/2011 - 22:12 | 1048156 pitz
pitz's picture

Ouch, 1% ROA?  That is messed up, even for a utility.....  ZIRP or not...

Sun, 03/13/2011 - 22:16 | 1048178 disabledvet
disabledvet's picture

nationalization--with obvious legal protections against creditors/etc...this is Japan after all.  In every way this is the worst time to sell let alone downgrade especially given the extraordinary job the BOJ has done keeping the yen an uber currency even with interest rates at zero with the obvious expception of the Japanese banking system which is a wreck already.  Unless and until that changes i'd be considering entry points here especially given the approach of the US Navy which is the foremost authority in matters nuclear and now may get to try out some of those cool "nuclear clean up toyz."  Should an after shock or even another quake hit Tokyo itself however...

Sun, 03/13/2011 - 22:22 | 1048197 John McCloy
John McCloy's picture

Dear Mr. Geithner. 

Unfortunately our nation has undergone a catastrophe. Luckily you owe us 862 Billion dollars. Would you be so kind as to send it on over ASAP. We know you are good for it.

P.S.- We may not be able to participate in upcoming debt auctions for obvious reasons. Should we take our money and BTFD and potentially double our money solving all our problems or will 33 Liberty not be buying futures for the remainder of the year.


The Japanese

Sun, 03/13/2011 - 22:47 | 1048379 Michael
Michael's picture

You know a large portion of that fund will be redeemed in the coming months. To bad the US doesn't have a backup savings plan like that.

Sun, 03/13/2011 - 22:21 | 1048203 PassedOut
PassedOut's picture

They are TBTF and will be bailed out like everyone else. This is the miracle of fiat money!

Sun, 03/13/2011 - 22:23 | 1048218 ziggy59
ziggy59's picture

what?? they're lying??



Sun, 03/13/2011 - 22:24 | 1048225 Mine Is Bigger
Mine Is Bigger's picture

From the Nikkei Japanese site, The No. 3 reactor at the Fukushima No. 1 nuclear plant exploded.

Sun, 03/13/2011 - 22:36 | 1048294 Michael
Michael's picture

There could be more to come. There's like 6 in trouble.

Sun, 03/13/2011 - 22:40 | 1048316 virgilcaine
virgilcaine's picture

This is the 'White Swan' event.. when an event turns catastrophic,  but the Risks were known.


No such thing as a Black Swan.. someone always knows something. 

Sun, 03/13/2011 - 23:23 | 1048598 Money Squid
Money Squid's picture

On Zero Hedge we are supplied with articles on how to hedge risk?

"...it may be time to hedge risk on the company most exposed to the nuclear shock in Japan, Tokyo Electric Power Company."

Sun, 03/13/2011 - 23:26 | 1048633 prophet
prophet's picture

Accidents waiting to happen continue to reach new highs.  Been saying that for a few years now.  I also believe that the probably of a series of low probability events occurring is also increasing dramatically, albeit from minuscule to measurable. 

Forty year old reactors, America's D rated civil infrastructure, forty year old monarchies, twenty five year debt and credit binges, complete lack of instrumentation and enforcement in the financial services industries, and, well you get the idea.  Yet MCD launches CMG and the next super wave of technological innovation is just around the corner.

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