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CDS Triggered: ISDA Confirms Argentina Credit Event Took Place
Moments ago ISDA, which yesterday was queried whether a CDS-triggering credit event had taken place in Argentina, made a ruling. Here it is:
- The Americas [Determinations Commitee] met on August 1, 2014 and resolved that a Failure to Pay Credit Event in relation to the Argentine Republic occurred on July 30, 2014.
Surprised? Look who is on the ISDA Americas determinations commitee:
BlueMountain Capital Management, LLC (Second Term Non-dealer)
D.E. Shaw & Co., L.P. (First Term Non-dealer)
Eaton Vance Management (First Term Non-dealer)
Elliott Management Corporation (Third Term Non-dealer)
Pacific Investment Management Co., LLC (Second Term Non-dealer)
And now, we find out who is the biggest seller of Argentina CDS was. Up next: the CDS auction.
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Now we are getting somewhere..... this should be interesting.
Is there any way of finding out who has bought / sold which CDSs before the event??? It's the only "fundamentals" that matter.
Too late. Can't use the info now.
Please sell me your collateral. Hurry and sell it before rates go up. I need collateral.
Put out a recommendation that rates are going up so we can get some more collateral.
Hurry, dump your collateral here!
If you can unravel a bowl of spaghetti , you might just about, maybe, work out who all
the counterparties are.
Its only as strong as the weakest link, as Lehman found out.
But we can short circuit part of the investigation by finding out who rules on the "credit events" panel.
Deleted
<--- Contagion
<--- No contagion
I marked what I wanted, vs. what I think will really happen. Is that okay?
I am sure that someone marked what they did not want vs. what they think will happen.
Just a Flesh wound!
https://www.youtube.com/watch?v=3XGAmPRxV48
Citi
DB
French Bank
German Bank
Priced in....rally on. Oh wait!
Yellen: "full printing speed ahead, damn the CDS torpedoes."
While on top of her inkjet, sporting two peg legs and an eye patch?
Are you saying Janet is a squirter? Real financial tranny midget porn. The SEC is tuned in as we speak.
Fuck yeah! A hard default CDS event. In this enviroment this could trigger all kinds of cross collateral scramble.
Douche Bank probably got a briefcase full of these.
Anyone thinking this may be another one of those long, difficult weekends...for Kirchner?
There's not even $900 million notional in CDS outstanding on Argentina. That's like a weekly fine for JP Morgan.
Can someone confirm that JPM backed away from the rescue yesterday?
I read JPM wrote many of the CDS.
So it was a tossup between bailing out Argentina for a few billion, or payout CDS for a few billion.
Comme ci comme ça
It seems unlikely to me that the default would have been deemed a credit event if JPM had any exposure - that would be so counter to the norm.
i heard a rumor that the argentine central bank was the biggest seller of CDS...
looks like a wash sale.
They should have been buyers. Is there any rule against buying default protection on yourself?
With business as usual, this should be .... bad for gold.
Massive commodity producer. Beef, soybeans, oil, copper. Logistics isn't a problem either. One thing to own a country...quite another to run it though.
Interesting that Kiev came out to say "we are not Argentina."
Massive commodity producer. Beef, soybeans, oil, copper. Logistics isn't a problem either. One thing to own a country...quite another to run it though.
Interesting that Kiev came out to say "we are not Argentina."
Portugal next in the daisy chain?
The only thing that's green right now is .....gold! :)
Gold doing it's job today
Argentina is a victim of its' own making.
The devil is in the paperwork and they knew it.
Does AIG still write CDS?
With both fucking hands. They have a direct line to "rebate" monies.
CDS= Corrupt Deceitful Securities
Given how much they were able to milk this cow for the first time around, why would they not want to go back to this trough?
AIG Bailout II on the horizon already? This will be rich...
Yes, I'm surprised they declared it an event. This could get interesting, as in "may you live in interesting times" interesting.
Surprised? How can you possibly be surprised when Elliot Management was one of the parties to make the ruling.
Sooo ... Argentina really isn't Greece, after all.
Argentina currency is not Euro. She can go for default.
...and no one will care.
Thanks God Argentina isn't tied to the EuroZone nor to the US Dollar.
Otherwise the defaulted ones would be us.
WE PREFER TO BE CUT OUT OF BANKSTERS' LOANS.
I HOPE we can make it last.
Cristina de kerchner (whatever) could pay down these debts herself. She needs Velvet Jones' new book, "I Wanna Be a Ho".
All this drama can end, Cristina.
https://www.youtube.com/watch?v=lZVnve5wG0A
Is it just a co-incidence that they defaulted on a Friday afternoon or did someone important have an extended lunch and take the rest of the afternoon off?
Its always a Friday. They need the weekend to apply more duct tape and shoe lacings.
No lets see if the CDS get paid out....its been a long time since an event has been called...Greece never was called and event...and AIG was bailed out by Obama
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
What he said!
Excellent points.
Now we see what a real sovereign default looks like (after all the false events).
Maybe Argentina will ignore this, and then somehow BRIC their next debt.
Everything is insolvent....Everything is going to fail...everything is insolvent....everything is rotten, when you are part of the cartel..everything is insolvent.
My take on the Lego song
From Michael Lewis' The Big Short ( Inside The Doomsday Machine ):
{
He says, "I love guys like you who short my market. Without you, I don't have anything to buy."
Say that again.
He says, "The more excited that you get that you're right, the more trades that you'll do, and the more trades you do, the more product for me."
...
The credit default swaps, filtered through the CDOs, were being used to replicate bonds backed by actual home loans.
}
( Now read the bit about Synthetic CDOs if you don't already know about them. )
What? Oh, I don't know.
I don't think this is a collapse, I just think it's a pullback. Then after this stocks will go to the moon as the inflation train keeps on training. I don't think we'll see another stock-market collapse in our lifetime. I think we'll just see more and more inflation till the dollar dies.
And you don't think the dollar dying is a collapse?
*
Sorry... double post.
So Elliot now gets to decide if Argentina is in default. This, of course, is after he seized the Libertad in what can only be called, and what international maritime authorities, have called an act of piracy. Paul Singer is actually a more wretched scoundrel than Lloyd Blankfein. Zerohedge, are you really going to keep publishing the columns of this pitiful example of everything that is wrong with Wall Street and the current financial system?
Frankly, if I were Argentina, I would declare him a pirate (for the seizure of the Libertad) and declare NML and Elliot Management international terrorist organizations, bending heaven and earth to get him arrested or seized somewhere in the world and brought to trial for international piracy in Buenos Aires.
Maybe you too, I email'ed ISDA twice this week asking why they had nothing on their website about Argentina and asking if CDS'es existed and what their status was. I thought they'd say nothing and duck the issue. What a pleasant surprise.
Argentina, how many times will you borrow and receive the short end of the stick? I felt sorry about the first round. Today you're plain stupid. Enjoy the debt poverty you gambled with.
Edit: take out your politician's. They signed your fate on paper. Skip court, firing wall squad will set example for fraudulent activities.
This government in Argentina has never had access to any foreign capital markets. They signed no papers. The debt in question first began to move under New York law in 1976, by a U.S.-puppet government, supported by the CIA (and part of Operation Condor). The CIA had been actively involved in manipulating political affairs in Argentina since 1954 up to and including the decades of the 1990s. Thousands of documents released under the Clinton administration prove this to be true. See this wiki if you want the facts http://en.wikipedia.org/wiki/Operation_Condor . You can view some of the actual documents here http://foia.state.gov/Search/Collections.aspx . CIA involvement included the use of "economic hit-men" and typical flim-flam strategies, supporting corrupt politicians with ties to U.S. financial firms, which was responsible, in great measure, for the spiraling debt of Argentina.
Thus, despite what polemicists and von Mises mouthpieces would have you believe, this is not and has never been an issue of "socialism" bankrupting the masses. A large arms build-up (which culminated in the Faulklands War), supported and encouraged by the CIA and the U.S. State Department contributed in large part to the debt. Also, the corrupt, CIA puppet-state, also socialized many of Argentina´s private debts (sort of like the U.S. in 2008) to appease Wall Street interests. To better understand Argentine debt accumulation, see here http://monthlyreview.org/2002/04/01/the-argentine-crisis/ .
In 2008, Elliot Capital Management swooped in and bought up what debt it could, debt still outstanding from the 2005 attempts to resettle, then Elliot refused the resettlement terms of 2010. Instead it brought suit against Argentina in New York courts, despite a law which prohibits the purchase of debt with the intent to pursue collections in court. So Elliot Capital Management violated U.S. law. Of course, since it is a Wall Street firm which bribes U.S. congresmen (and presumably U.S. judges) there was no attempt to enforce the "sancrosact" New York laws on Elliot or Paul Singer. The law only became sancrosanct when applied to Argentina. As everyone knows, U.S. law is for sale to the highest bidder and does not apply to Wall Street. For evidence of Elliot´s bribery of U.S. lawmakers, see here http://www.opensecrets.org/industries/indus.php?ind=F2700 .
In 2013, Elliot Capital Management, in violation of every conceivable international law and what can only be called an act of piracy, seized an Argentine naval vessel in Liberia, the Libertad. So, in addition to violating New York law, Elliot violated international maritime law and committed, what is in reality- not the fantasy land of Washington- an open act of war on the sovereign nation of Argentina. Has the United States government reined in this rogue pirate and hedge fund, which is brazenly and openly committing acts of war? No.
And now, it seems, having forced Argentina to stop payment on all its debts in court, having purchased CDS´s on the debt to, in effect, defraud JPMorgan (it seems), and having violated a directive to negotiate in good faith (since they wanted a default and did not want a negotiation, so they could collect on the CDS´s), Elliot sits on the panel that decides whether or not they can, effectively, defraud their CDS counterparties out of a few billion dollars. And you think Argentina is at fault here? The only fault of the Kirchner government has been naivety as to what a cess-pool Wall Street is and what an absolute scoundrel Paul Singer is.
So now that you have the facts, I sincerely hope that all the ideological nonsense about Latin American "socialism" vs. the good-old-fashion capitalism of Paul Singer can stop. Singer is a criminal, a hypocrit, and typical of Wall Street scum. Socialism never "bankrupted" Argentina; rather Wall-Street and CIA financed crony capitalism and military arms creation bankrupted Argentina. The currect government is only trying to pick up the pieces.
Thank You.
History teaches:
The YPF oil privatization scam under Menem.
Watch this documentary and learn more of the actual history of Aggentina's predicament.
[and former General Machado's overwhelming success in discovery and development of Argentina's oil reserves, and how CIA Op. Condor, international banks and financial swindles upset and robbed that success from Arg.'s citizenry.]
http://topdocumentaryfilms.com/argentinas-economic-collapse/
See also Naomi Klein' Shock C Doctrine:The Rise of Disaster Capitalism
Thanks, also.
Open-Source public information at its finest!
I so miss the simpler times when I didnt even know what a CDS was.....sigh.
If they really are to be kicked to the curb,then it is a shame that some Argie Snowden wannabe doesn't do a data dump on Wiki about all the Central America shenanigans that the CIA and Argie Intel got up to under Reagan,etc. Kissingers' bloody fingerprints are probably all over the place.
There's a good question: why was a minor Spanish judge responsible for an Interpol arrest warrant to be issued for Kissinger,Pinochet,and all the other losers. Nobody else have any cojones? The world wonders......