Is Titlos PLC (Special Purpose Vehicle) The Downgrade Catalyst Trigger Which Will Destroy Greece?

Tyler Durden's picture

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Going Down's picture


Better Late Than Never


EU leaders: only 8 years behind the curve on currency swaps

merehuman's picture

So Moodys works for GS? Haha. Seems that way.Euro down, dollar up, yea we are keeping the show going. Another act to follow. Surely, if all the worlds is a stage we , the people are the shrubbery!

Careless Whisper's picture

Why does it seem like whenever there's financial deception, there's a GoldmanSachs vampire lurking in the bushes?

Anonymous's picture

Word going around last week the squid betting greece default, surprise surprise! really AIG all over again!

shanelee's picture

The Titlos SPV itself may be null and void should the rating of the National Bank of Greece, as the Hedge Provider, drop below a "relevant rating" as defined in the hedge agreement.

araç takip sistemleri

Anonymous's picture

Sun Tzu would be proud. Encourage debt on easy terms while a global bubble makes ignorant and short-sighted politicians easily gulled. Then use collusive internationalist financial assassins to make binding contracts with necessary put and trigger clauses actuated by the other "seemingly independent" rating agency. In span of time make similar arrangements throughout all the states or global municipalities and THEN pull global liquidity via the Reserve currency, reserve bank. In the bust add increasing pressure to hobbled economies forcing ignorant leaders again in desperation to pay greater and greater fees for less and less time to stave off default. Make sure that the LARGEST unionized global sector aka Europe has monetary union but NO ACCESS TO A PRINTING PRESS.

Selectively begin precipitating default while holding CDS insurance contracts to further collect on the assassination. Currency in a NO PRINT sector can be manipulated by the printer to unsustainable strenght KILLING exports, crashing productive sector, forcing capitulation.

Viola! Global economic warfare where one destoys the productive and warmaking apparati of the enemy while simulataneously stripping the nations of capital, cash flow, competetiveness while enriching the oligarchic banking interests of syndicate sponsoring nation.

Careless Whisper's picture

so what you're saying is it's goldman's version of a controlled demolition.



Anonymous's picture

Gs and others on the street got demoed by
a firm in Tx which is where they probably got the
idea. A company had 79 million bond coming due. Clearly
the co. could not pay and the covenants said default
and the co. is history. This Tx boutique wrote
500 million on the 79mm bonds in CDS to big firms that the company would default on the bond. They booked the
premium paid by the "street" on the CDS and turned
around and lent the company the 79mm to make the
bond coming due- no default. Result GS is suing the
little Tx boutique. I guess they are sore losers..

Careless Whisper's picture

You mean they're suing for NOT defaulting? Hehe. Do you have any links to court filings?


Anonymous's picture

I believe this was in the Wall St Journal. I believe
the firm was Amhurst Securities. Bottom line
GS business profile; if they lose on a trade
they sue. If they win they walk away counting their
shekels all the way back to Broad Street from
Maiden Lane. Making a pit stop along the way to
their local deli for corned beef sandwiches on rye, side
of sour pickles and cream soda. Then scurrying
back to hunt for their next victim in the name
of modern finance.

Anonymous's picture

And I might add true to form they found one-Greece.
It didn't take long as they set this one up in 2008.
Just waiting for the ticking time bomb to go
boom and it did....

Molon Labe's picture

Heartwarming story if true.  I guess GS doesn't like losing at its own game.

mberry8870's picture

It is true. It is kinda like knowing the they guy is selling you a lemon, betting that you can't pay and you figure out a way for the lender to have to bail you out. They are just pissed  because they got beat by a few good old boys from Texas.

Anonymous's picture

100% true and point of the WSJ article. Doesn't it just warm the cockels of your heart?

crosey's picture

Extraordinary piece, Tyler and Marla.  Thanks loads.

john_connor's picture

What a clusterphuck. 

credittrader's picture

Awesome piece! Once again it seems the fear priced into credit markets is correctly identifying real fundamental (and in this case short-term liquidity vs long-term solvency) problems.


Just as an FYI - with all the chatter about CDS being responsible for all the Greek uncertainty, I thought your readers might like to note that 1) CDS volumes remain minimal relative to govvie bond volumes (even with leverage), 2) Greek bond spreads are WIDER than Greek CDS (all relative to Germany), and 3) today saw bonds once again underperforming CDS.


It seems to us that it is real money deleveraging and reducing duration in European sovereigns that is driving this crisis (just look at the concessions and basis in the recent new issuance over there) as opposed to CDS traders pushing spreads wider ceteris paribus...


So, is CDS simply a barometer of the risk in sovereign debt or is it the evil incarnate market that everyone think it is? You're only allowed to answer if you know anything about the CDS market (sorry them's the rules)!


BTW, is anyone buying Puts on Greek stocks? (you mean-spirited investors you) or buying vol? (how could you?) - remember risk is risk and CDS are not on their own in the circle of trust that is the capital structure of an entity (corporate or sovereign)...[rant over].

Anonymous's picture

Pound salt. Possibly Greece will walk away from their
GS derivatives trade much like China did. While CDS
is good for the sport if you will. You don't enter into
a contract with a sovereign nation EU member as an advisor and turn around and make it self fulfilling. BTW are you
buying puts on Greek stocks? Buying vol? Put your
money where your mouth is. Last time I checked
no one wins when they take on a sovereign nation
particularly when they are bigger than you and
in the grand scheme of things they are bigger than
you. Get a life you Soros wanna be and stick to
putting companies out of business. You may have
better luck. Ever think of this? Everyone involved
can simply change the rules and get rid of bond gnats
like you in a heartbeat. And that includes GS. DC has
clearly telegraphed to GS due to their behavior post
financial 9/11 no bailout a second time. GS will be liquidated. They have had it with this deliberately destructive behavior for the benefit of pure greed. And
if it goes against them Good old Uncle Sam will bail
them out. Not this time. And if folks act in unison
collectively they are bigger than anyone out there.
Get a grip.

illyia's picture

Jeez Tyler... you are getting scary good...


illyia's picture

Ooops! Marla - you are very scary too...

Fantastic job.

bugs_'s picture

Incredible presentation!

So they were just buying time really.  And who
better to sell them time than GS?  Now that
they have used up this time will they finally
face the music or will they try to find another
entity to sell them some more time?

Digging ever deeper "What were the Greek Powers
That Be doing with the time they had purchased
using this Enronesque strategerie?"

hedgeless_horseman's picture

"What is the real story, however, is that far from mere observable, on-balance sheet funding needs, Greek has suddenly found itself at the mercy of a Moody's, whose just one additional notch down, would increase the funding needs by almost 40% in addition to near term maturity requirements. Score yet one more for the off-balance sheet securitization puzzle, so prevalent in our day and age, courtesy of Wall Street's "innovation" masters - Goldman Sachs."

Now, flash forward some years/months to this scenario:

"What is the real story, however, is that far from mere observable, on-balance sheet funding needs, America has suddenly found itself at the mercy of a Moody's, whose just one additional notch down, would increase the funding needs by almost 40% in addition to near term maturity requirements. Score yet one more for the off-balance sheet securitization puzzle, so prevalent in our day and age, courtesy of Princeton's "innovation" master - B.S. Bernanke."

In my understanding, Titlos (as opposed to Assloss?) is not a hedge.  It is merely "kick-the-can and pray" financing.

DavosSherman's picture

Doing God's work. Un-f*cking believable. Try doing Satin's work AH.

jomama's picture

maybe they truly believe this mantra?  just like the US military let the haitian people die from lack of relief and support.  perhaps they are trying to chip away the unsustainable growth in human population on this planet by pulling the rug out from under them?  truly a noble cause.

djb1953's picture

Who oh who is going to cut the tentacles of this squid who seems to be devouring not just individual or communities but now whole countries.

Sounds like those aliens in Independence day who like locusts devour everything then  move on.

merehuman's picture

AhH  its the animal spirits!

Everybody wanted change! Hey its coming!

One meal a day, shelter from the cold, hard nite (sleeping bag will do) and a little human contact is all many of us need every day.

All else is luxury. But because we are greedy we become thieves and others are merely marks. I think we all lose when we reach for more and more and lose ourselves. I find myself laughing, happy and make my gal laugh. This predicament we are in is and will be life changing for all of us.

Its time to reconsider our goals and values because as the world changes, so must we.

If the populace with its spoiled nature of having, comes to NOT have they will rebel before learning to aquiesce.

Translated into high crime rates and riots, which leads to martial law.

The public is being fed the lie of recovery whilst the ship sinks further day by day.

9/11 was covered up very well also.

But now more of us realize the towers were indeed blown up, all up and down the building just like hundreds of other buildings that have been demolished over the years.

I found some evidence that finally convinced me , I cried like something had died. What died was my remaining faith and trust in our government. At this point i want it all to fail because its the only way we can take the crooks out. 

We cant rebuild on dishonesty, most of us are better than this. Or are we?

Sorry i rambled, had to get it off my chest.

duo's picture

so far in history 3 steel-framed buildings have collapsed due to "fire", and all 3 happened on 9/11.  Move along.

merehuman's picture

in the world there is a record of other high rises that had fires, yet the steel frames remained.

Anonymous's picture don't know the physics and don't have the discipline needed to find out.

Quantum Nucleonics's picture

Yea, but none of those were started by an exploding 767 flying 600 knots nor were they fueled by 20,000 gallons of aviation fuel.

The fuel air explosion from the impact disrupted the foam insulation.  Had the builder used a different kind of insulation the buildings might have stayed up longer.



Anonymous's picture

Had the builder used a different form of insulation...

True that. That pesky new-fangled Thermite insulation is a real pain in the ass when ignited.


Marla Singer's picture

Agree, disagree, take the Truther stuff to another site. Thanks.

Marla Singer's picture

Except I'm not the Ombuds(wo)man.

MsCreant's picture

I assumed she would be presenting under the Marla avatar, also. Apologies.

Altan311's picture

Thats a bullshit flakeout considering the amount of crap that was covered up by the blowing out of SEC enforcement office, probably enough funny paper to write 1000000000 billion in SPV prospectus. weak sauce.

WaterWings's picture

Since it is somewhat of a lightining rod for employees of Janet Napolitano I will comply. Pierre? Lou? Andrei? You hear that? No more hijacking the blog with your unoriginal ad hominems.

shanelee's picture

Thank you for posting the great content…I was looking for something like this…I found it quiet interesting, hopefully you will keep posting such blogs….Keep sharing

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Daedal's picture

Well, I guess we can all breathe a sigh of relief since Barack increased our debt ceiling.

MarketTruth's picture

As always, GREAT WORK Tyler and Marla!!!

So... ummm.... can you both find a way to audit the United States company Federal Reserve? It makes one wonder what is on their balance sheet and on/off the books.

Hephasteus's picture

Goldman Sachs. Helping people break rules and then fucking them over for a profit. The helping hands of our modern financial system.

Internet Tough Guy's picture

It's like a greek tragedy. (Someone had to say it).

Anonymous's picture

jeez the f'n place is just loaded with trip wires.. sshhh, easy does it.

Bill DeBurgh's picture

"Titlos PLC"? Really? TIT LOSS?

Anyone remember Chewco Investments LP, Kenobe Inc and Obi-1 Holdings LLC. Chewco?

bugs_'s picture

Whats the symbol for the 3X Tit Loss ETF?

Jesse's picture

"Alas, this is nothing but more scapegoating while Europe tries to find its bearings and, if possible, back out of the bail out while finding more pretexts to throw Greece out of the euro zone entirely. If it takes a Goldman smear campaign, so be it."

Goldman smear campaign.  LOL.

That's what they get for just trying to do God's work.

The purpose of the swaps agreement was to hide debt and to subvert the banking rules.  Nothing you said in your apologia negates that.

You seem to feel that because someone might have discovered the deception by reading into this prospectus would be more credible if that had been done BEFORE the fact. 

Standard Wall Street smoke and mirrors really.  We didn't do anything wrong, we just did business as usual.  Its Europe, bunch of crybabies. We're just doing God's work.

It might have been more effective if you had shown exactly where in the prospectus it was obviously that this was a sham transaction designed to perpetrate a fraud.

Very disappointing.



dnarby's picture

Note the "arranger" on pp 1,2, 54 & 92.