This page has been archived and commenting is disabled.
ECB To Fund Eurozone Central Banks As PSI Sweetener
A number of headlines from Bloomberg, via Die Welt, that the ECB will undergo a bond swap with the NCBs on their greek government bonds and the 'profit' will flow to governments.
- *ECB SWAPPING GREEK BONDS FOR NEW GREEK BONDS, WELT SAYS
- *ECB BOND SWAP TO BE COMPLETE BY MONDAY, WELT SAYS
- *ECB TO PROFIT FROM BOND SWAP, WELT SAYS - Explain please!
- *WELT: ECB SWAPPING EST. EU50 BLN GREEK BONDS AT NOMINAL VALUE
- *ECB TO DISTRIBUTE PROFIT FROM SWAP TO GOVERNMENTS, WELT SAYS
This is absolute delusion. The ECB (via the NCBs) claims EUR50bn nominal value of GGBs - so likely took a EUR20-30bn loss on this given the prices they bought at under the SMP and the current market price. We explained last week (must-read) the delusional nature of these profits (that will disappear immediatley the new bonds break) and assume this is yet another attempt to make market participants believe they wil help with PSI. However, there is more to this in our humble opinion. Since the ECB says they will distribute profits (which we know are illusory) to governments - it is nothing but a covert attempt to funnel money (think printing) to local government central banks (accept 20c bonds and offer 100c bonds) - and the illusory profits here are simply giving away free money to the NCBs. Perhaps the loud screaming over the pain associated with even an 'orderly' Greek default is enough that the ECB needs to placate them with some new freshly printed money? For now, the PSI remains in limbo for the hold-out blocking-stake reasons we have discussed at length - if the ECB were to step into the market and buy/swap with hold-outs all of their UK-law bonds at Par (for huge gains to the hedgies) then perhaps we get a deal done - but this would be astounding and leave the rest of the European sovereign debt market disabled as investors pushed for the same deal and vigilantes drove Portugal and then Spain to this point...
Please explain how a notional swap in any helps the Greeks? (no debt reduction)
No surprise we see this -
- *ECB SPOKESMAN DECLINES TO COMMENT ON WELT BOND-SWAP REPORT
Finally, and as before, we issue a formal question to Mr. Draghi to point out just where on the chart below does the ECB book profits on Greek bonds?
And some overnight insight that we tend to agree wth from Credit Suisse:
We remain very cautious about the long-term sustainability of the debt after restructuring, and it is just possible (not our core case) that the troika takes the rational decision that it is cheaper to let Greece default and reimburse the ECB for its approx. €30bn of GGB losses than to pay the rising but nominally €130bn. Yet it was only on 14 February (two days before writing) that the ECB was confidently talking of distributing its GGB profits, so we are cautious about second-guessing the analytical framework being used.
»
- 9976 reads
- Printer-friendly version
- Send to friend
- advertisements -
Fresh hopioum. AHHHH it feels good!
There are lies
Then there are desperate lies.
Then there are "Greek deal" lies.
I have learned this now.
There are high frequency trading monkeys running around buying on every announcement.
http://www.youtube.com/watch?v=h4bAKnu_0_0&feature=g-all-u&context=G2700510FAAAAAAAAAAA
IMF DEBT RAPE - FKN Newz 2011 part 7
Soon the lies will run out and one morning we will find out that Greece has defaulted.
Europonzi at the disco! Dance dance party! Everybody party!
Party! Party!
AND ALL OF THIS AHEAD OF MONDAY!!!! When we are closed!!!
I don't think it's a coincidence that the decision will be made on a day when US markets will be closed. Tuesday will be interesting. I guess the market will either take-off like a rocket or tank based on what happens Monday. I guess it will depend on if Germany decides to tell Greece to screw itself or not.
I agree, maybe this why today was the day to announce the big swap :))!
What are markets closed on Monday for, Whitney Houston Day?
Central bankers creating more black holes of debt.
http://ronpaul2012blog.blogspot.com/
Very creative rumor. For all the right reasons, ZH shoots its down.
Bernanke, "SCOREBOARD."
HOW IN THE FUCK
We used to assign the unexplainable as 'PFM', pure fukin MAGIC!
PSI = Pounds per Square Insurrection
Govts and Central Bankers love to add excess hairspray to the potato gun....then look around in astonishment when they blow a hole in the neighbor's garage
LMAO SheepDogOne.
http://www.biblegateway.com/passage/?search=2+Thessalonians+2%3A8-14&version=KJV
.....PFM...... is explained though. Our generation is declairing http://bible.cc/revelation/14-8.htm ..........................................................the fall of Chairsatan's Black Hole Babylon ..........................................................................and the drunken market Whore ...............................................................................riding ''The''Bullshit Bullish Beast'' ...................................................................with the Black Horse scale Cup of Fornication ....................................................................................filled with the Wine of Wrath. http://www.biblegateway.com/passage/?search=Revelation+17-18&version=KJV
It's PFM fer sure Shep, but, it's also the revelation of the ''prophetic strong delusion'' .............................................................................of the Suicide Vampire Squid ...........................................................................of the Great Wal Mart of China ...........(AKA ''SD'' Street Devil or PF2AM3 ''pure fuckin fallen angel money market magic'') .................................................^ ^...........................................................
Angel in the Whirlwind^^ ]0[ ^^Money Printing
V V
http://www.youtube.com/watch?v=DDq9LWdJopE
...............................................
.............
...
That's elementary:
1.Create Swaps
2.Swap them
3.Profit
Questions?
i'm not that bright...
so.... if i pay off one credit card with another one at a lower rate the difference in rates is actually profit?
sweet
2011 Lesson #1:
GOVERNMENTS WILL DO **ANYTHING** TO KEEP THE WHEELS TURNING.
They will kill people. (Gadaffi) They will jail them until they resign and then release them. (DSK). They will force people to lend money to other people they don't want to lend to (PSI). They will redefine words. They will redefine accounting. They will do anything.
In the end, there is only one thing they cannot do. When it becomes clear, it will all unravel, but not until then. They will declare absurd things to be true by edict until they reach that one unfixable limit.
That limit is oil. There is nothing else they can not do. They will try to fake oil, too, with the SPR, but in the end only oil is beyond their power.
Well that explains todays stock spike higher...everything is FIXED...again!!!
'Nobody has losses' fantasy world is a lovely place.
well this should fix everything wtf are they gonna do about neg gdp....wtf does the swap do NOTHING
with words.
Have to respect that everything can be fixed with words.
BTFD is in vogue I see. I'm long Monet and Picasso./sarc
these fuckers should be charged with mkt manipulation...fucking joke
instead of charging them with market manipulation, a crime that will surely land them a stiff 5 digit fine (puke).
how about if we just made them walk the streets of Athens without a bodyguard and carrying a sign that identifies who they are. I think that might better achieve the type of justice they deserve.
the greek pansies would through tomatoes at them....drop them off in kabul with a plackard that says.... i love jesus
Desperate times. Desperate lies. Desperate.
I have a buddy who says the best structured products he creates are when he has a motivated seller (cough desperate) meeting a motivated buyer.
The longer gravity is ignored, the more desperate all sides get.
Geobbels didn’t even have the gonads to try a lie this big
Oil at 103, dollar falling off the cliff, EUR/USD going completely parabolic. /ES vertical since 8am
you just gotta laugh.
wait till psi says fu to the deal....watch paulson on cnbc yesterday quoting how jamie dimon says us banks are immune to a greek default...-----hey jamie thats only if you cds gets elected
So the Euro goes up vertically due to the ECB will have to print. Sure, that makes perfect sense.
Well, yeah....What does diluting the hell out of your currency have to do with stealing from Forex traders?
ooo...that big shiny Print button looks too good to not press!
History Eraser Button...
that's exactly the button I had in mind!
Bravo!
For those who predict that a Grek default is planned for March 23 here is an interesting twist about CDS mega bomb payout on OTC transactions in US banking, as in Euro banking :
ART CASHIN: Forget Greece, Traders Are Worried About Something That Could Send Us Back To The Middle Ages Sam Ro | 2 hours ago
Read more: http://www.businessinsider.com/art-cashin-greece-traders-cds-middle-ages-2012-2#ixzz1mZ4JZfke
So, Europe goes under into deep recession, and...WS swims into what...???
I love those who sit on the Titanic and drill holes into its hull, all in the name of Euro shenanigans, forgetting there are shenanigans in Big Apple and Big City that would make even Abacus blush in pristine innocence.
I want my money back...Is the cry of the CDS market if its deemed voluntary in Greece, and that will freeze derivatives like the ice age of banking world wide. Drill away at the hull of WS Titanic, its gotta to be thick pray the banksta cabal, as Costa Concordia of Greece goes to maximum tilt.
Both the CDS triggering, which was news in July 2011, and the Debka-esque story are completely irrelevant. The only things that matter are i) insurance company impairments and ii) Greek bonds repoed to various central banks via Shadow banking. ii) is the only thing today's action is trying to address. As for i), pray that suspension of MTM works through bankruptcy.
TD : you will make a catholic out of me, on my knees singing " I pray God, that suspension of MTM works through bankruptcy"... its Greek to me, HOW marking to market will work miracles and go through the bankruptcy wall but I'll try and educate myself. I have a sinking feeling that this "mark" will greatly "unmark" my own personal account like melting butter.
As for insurance company impairments, or insolvency, I'll tell them to not impair by going soluble, disappearing into acidified solution, but go to inert like gold that doesn't dissolve! Its all like money bet on roulette wheel, the accounting in this world, marking to market and disappearing like salt in hot water; where red beats black, as odd beats even, until that run of luck kicks the acid bucket...and all disappears!
I remember that from "Casino" and SS/DeN and even "the Great Sinner"...great film with Ava Gardner and GP. It makes casino royale and empty pockets after blow out, more palatable, and the acidity less corrosive. I'll have my glass of Muscat to forget all that! Of course, on my knees and without my hat on!
i'm pretty sure this won't be newz to you: traditionally, BK liquidation is only done @ market
otherwize, like GM, it would just be another rectalRefi to those with contractual claims whose wealth is needed by others for the "greater good". listen to the music?
when the furniture is sold to the highest cash bidder, the gavel falls on everyone alike = BKmarket
how much longer the books will reflect that the used furniture is "worth" 100X what the "market" might say is just a matter of how long the ponzi-stone continues to produce blood, as far as i can see
how long will it be "worth it" to bear the "social consequences and long-term costs" of pretending the growing zombie population will be solvent sum day?
and what will happen then, in the "market"? what shall people see as the "greatest good" on that blessed morn?
this is the opera we're all watching, and we're pretty much all in, together, thanks to the fuking commie pols and fascist banksters and thePeople who get the treacle-down, too, we might all admit...
that matket "sigma-signal" may be first displayed in greece, but as SD-1 sez, we'll deal w/ the can when we catch up to it, again, this afternoon or tomorrow at the latest; just a little kick aaaaand...we're all set till "tomorrow"
tyler has polished off the entire year's communion wine and is in the pulpit, BiCheZ!
Buy high sell low... make it up in volume.
Make what up on volume? They are booking losses!
Losses? That'd almost be like buying high and selling low!
Losses? That'd almost be like buying high and selling low!
Buy high sell low... make it up in volume.
i read an article today that ISDA (International Swaps & Derivatives Association) controls the CDS Market and the "Credit Default" event's which caused MF Global to go bankrupt.
In my perspective i think three of them (JP, MF and ISDA) wanted this to happed.. a CDS Market worth 32 Trillion USD's
So how do you expect Greece to default exactly?
http://www.marketoracle.co.uk/Article33140.html
'So how do you expect Greece to default exactly?'
I don't by the simple fact that it already did. Ask yourself a simple question: If I figure out a way to keep circulating blood through a corpse, is it still dead? Simple. The only people left questioning this default are the ones who excepted Clinton's remark about the is-ness of something and the banking cabal. Both are semi-retarded.
There is no question about that Gene, but see the TBTF will go fucking Bankrupt and the 0.00001% will not allow that shit to happen!
Imagine triggering CDS's worth 32,000,000,000,000 USD how the fuck can they afford that shit?! maybe half of those CDS's are naked.
after all Fuck TPTB, but we have to wait what time brings
Sovereign CDS will trigger the end. The Atonement Cometh, naked CDS or not.
http://www.isda.org/membership/isdamemberslist.pdf
http://www.isda.org/membership/ben_of_primary.html
If you're suggesting that we need RICO on horse steroids, then I concur.
hooray another deal...comon give it up..selling this shit and will continue...
Why isn't AAPL leading the crew after the 5% drop yesterday currently trading @ 492.69. WTF? Oh wait it must be the ponzi XLF!
This "Greek deal" lie actually broke AAPL's downward channel. (Maybe its sole purpose). We are covering like mad right now.
'The profits' will flow to govts'....OK then WHO took the LOSS? SOMEONE had to!
What a bunch of BS...profits without loss...OMFG.
In the meanwhile, the market is attempting yet another 52 weeks high.
The level of unreality in the EU reminds me of the history of Nazi Germany. Before anyone goes off the deep end, not the racism, violence, or warmongering, just the unreality and deception.
Draghi laughs at you from his unicorn, Tyler, as he rides into the sunset on the trail to find the elusive den of the leprechauns.
lol And, how dare Tyler try and make a Goldman tentacle justify what he does and why he is doing it. <sarc> Every day this show gets more and more insane and I become more amazed at how long the human mind can elude itself of the truth.
The mind believes what it wants to. Everything else is reality.
TD Draghi farts in your general direction.
If Greece is 'allowed' to default, they will serve as an excellent example of what happens to a Western Sovereign nation that has not taken it's obligation to the banking system overlords seriously.
It's a win-win for the bankers - default and Greece will be thrown into chaos, societal collapse and possible civil war. It will be all over the news, every day, anguished reporters will witness terrible scenes, beamed directly into your home for you to be horrified by. LOOK WHAT WILL HAPPEN TO YOU SHOULD YOU NOT HONOUR YOUR DEBT TO US.
The banking system has dragged this facade on just long enough to allow a firewall to be put between itself and the Greek debts. There may yet be unforeseen consequences, but the bankers have convinced themselves that they need worry no longer about contagion - the rest of the little PIIGS will be only too glad to pay tribute to their masters lest they join Greece 'outside The System'.
This is retardness to the nth power.
Full retard X10.
And yet they just do this shit day after day with a straight face, apparently in full delusion that everyone else is 10X dumber than them.
The " man with the XAU" theory Sheepdog. He junked me. Good on you and your crew. +1
"ECB To Fund Eurozone Central Banks As PSI Sweetener"
Exactly. Therefore: no collapse. Greek default will be a non-event. They just have to organize it.
The ECB is booking losses and making up for it on the asset side of its balance sheet by loaning gold and fractionalizing the cash, increasing inflation in magnitude only known in third world countries.
BORING WORLD WE LIVE IN.
- U.S. intelligence: Israel is likely to strike Iran in spring, as weather will suit better
- Iran: Our satellite photographed Israel's Dimona reactor, IDF bases
- Netanyahu: International sanctions against Iran not working (aka war is on bitchez)
This is all just 'marching in place' BS until the ICBM's start flying.
... and a big positive for the Euro currency:)
In the words of Nick Leeson's boss, the ECB has found a new way to make money:)
Draghi's got a digital money machine. He don't need no stinkin balance sheet.
The balace sheet is the reason or the cash. He books losses, loans gold, reserves cash, loans cash, presto chango! Balance!
Please explain how a notional swap in any helps the Greeks? (no debt reduction)
Can kicking obviously. Swap March ´12 bonds for March ´13 bonds. In the time you´ve won you can have something like 30-35 FinMin meetings and twentysomething dealines.It was never about 'helping the Greeks'.
Hey it's not just the ECB creating fantasy profits. GM and Crysler have posted their first profit in 15 years. I suppose inventory is future sales, ergo profit.
So which currencie will hyperinflate first? The euro? The dollar? The yen? La-tee-da!
Watch T-10's and you sha!! have your answer. It used to be the 2nd largest economy. The hopium is even in the GBP q/e parabolic rise. LMFAO!
ECB knows it's all crap. Think macro.
There is an external reason to continue the elephant shit. My speculation is that they can't attack Iran if there is a financial collapse.
I speculate that they will continue with idiotica like this until Iran attack. After that, they will let it go.
Yep. Just marching in place till the ICBM MIRV's start dropping from orbit.
Tyler,
You're surely not suggesting that this is (yet) another act of desperation?
It just gets better and better...
DavidC
The 'AAPLDAQ correlation' has already been unhinged I guess....only when its UP does it drive 90% of market activity. Now that its off -40 points, it is totaly irrelevant to market movement.
ONLY 15 more trading days like today, and we're ABOVE previous all-time record high market megabubble top! AMAZING!
What crisis ...
ECB TO PROFIT FROM BOND SWAP, WELT SAYS - Explain please!
You really have to admire the disinformation.
*ECB SWAPPING GREEK BONDS FOR NEW GREEK BONDS, WELT SAYS
ROFL
ECB To Fund Eurozone Central Banks As PSI Sweetener.... more dangerous than aspertame
Since these bailout funds only circulate between bank vaults and investment banks, the public shouldn't get to excited about this monetization of debt. It isn't money, and the general population never sees it, anyway. People get the poverty, banks get the liquidity.
http://thedailyclimb.wordpress.com/
http://www.cheapredbottomheels.com/ red bottom heels
http://www.cheapredbottomheels.com/ red bottom shoes
http://www.cheapredbottomheels.com/ red sole heels
http://www.cheapredbottomheels.com/ red sole shoes
http://www.cheapredbottomheels.com/ christian louboutins
http://www.cheapredbottomheels.com/ cheap red bottom shoes
http://www.cheapredbottomheels.com/ cheap red bottom heels
http://www.cheapredbottomheels.com/Christian-Louboutin-Big-Lips-120mm-Suede-Pumps-Pony-Hair-Red-cxv-111.html christian louboutin big lips pumps
http://www.cheapredbottomheels.com/Christian-Louboutin-Pigalle-Plato-120mm-Cork-Pumps-Naturale-cxv-213.html Christian Louboutin Pigalle Plato 120
http://www.cheapredbottomheels.com/Christian-Louboutin-Sigourney-Ankle-Boots-Metallic-Black-cxv-531.html christian louboutin sigourney ankle boots
http://www.cheapredbottomheels.com/Christian-Louboutin-Bourge-100mm-Leather-Boots-Black-cxv-445.html Christian Louboutin Bourge 100mm
http://www.cheapredbottomheels.com/Christian-Louboutin-Rantus-Orlato-High-Top-Men-s-Sneakers-Multicolor-cxv-231.html christian louboutin rantus orlato sneakers
http://www.cheapredbottomheels.com/Christian-Louboutin-Rollerboy-Flat-Spikes-Mens-Flat-Shoes-Black-cxv-364.html Christian Louboutin Rollerboy Spikes
http://www.cheapredbottomheels.com/Christian-Louboutin-Toutenkaboucle-150mm-Buckle-Sandals-Beige-cxv-300.html Christian Louboutin Toutenkaboucle
http://www.cheapredbottomheels.com/Christian-Louboutin-Change-Of-The-Guard-150-Sandals-Mint-cxv-241.html Louboutin Change Of The Guard 150
http://www.cheapredbottomheels.com/Christian-Louboutin-Maggie-140mm-Glitter-Watersnake-Pumps-Nude-Gold-cxv-675.html christian louboutin maggie pumps
http://www.cheapredsoleshoes.org/ christian louboutin
http://www.cheapredsoleshoes.org/ red bottom Shoes
http://www.cheapredsoleshoes.org/ red sole shoes
http://www.cheapredsoleshoes.org/ red sole heels
http://www.cheapredsoleshoes.org/ red bottom pumps
http://www.cheapredsoleshoes.org/ cheap red bottom pumps
http://www.cheapredsoleshoes.org/ red bottom heels
http://www.cheapredsoleshoes.org/ cheap red sole shoes
http://www.cheapredsoleshoes.org/ cheap red bottom shoes
http://www.cheapredsoleshoes.org/Christian-Louboutin-Daffodile-160mm-Aurora-Boreale-cxv-239.html christian louboutin daffodile 160 in strass
http://www.cheapredsoleshoes.org/Christian-Louboutin-Daffodile-160-Suede-Pumps-Purple-cxv-150.html cheap 160 daffodile pumps
http://www.cheapredsoleshoes.org/Christian-Louboutin-Decollete-100-mm-Pumps-Black-cxv-12.html christian louboutin decollete
http://www.cheapredsoleshoes.org/Christian-Louboutin-Louis-Silver-Spikes-Men-s-Sneakers-Black-Patent-Leather-cxv-328.html louboutin spiked sneakers
http://www.cheapredsoleshoes.org/Christian-Louboutin-Volpi-150mm-Sandals-Emeraude-cxv-749.html christian louboutin volpi 150
http://www.cheapredsoleshoes.org/Christian-Louboutin-Hyper-Prive-120mm-Glitter-Pumps-Golden-cxv-526.html Christian Louboutin Hyper Prive
http://www.cheapredsoleshoes.org/Christian-Louboutin-Ron-Ron-100-Patent-Leather-Pumps-Nude-cxv-709.html christian louboutin ron ron pumps
http://www.cheapredsoleshoes.org/Christian-Louboutin-Sex-120mm-Patent-Leather-Pumps-Nude-cxv-507.html Christian Louboutin Sex 120
http://www.sportjerseysclub.org/ cheap jerseys
http://www.sportjerseysclub.org/ Wholesale jerseys
http://www.sportjerseysclub.org/ cheap nfl jerseys
http://www.sportjerseysclub.org/ nfl Jerseys
http://www.sportjerseysclub.org/ nhl jerseys
http://www.sportjerseysclub.org/ discount mlb jerseys
http://www.sportjerseysclub.org/NFL/wholesale-New-York-Giants-jerseys/ New England Patriots
http://www.sportjerseysclub.org/NFL/wholesale-Pittsburgh-Steelers-jerseys/ Pittsburgh Steelers
http://www.sportjerseysclub.org/NFL/wholesale-Green-Bay-Packers-jerseys/ Green Bay Packers
http://www.sportjerseysclub.org/NFL/wholesale-Indianapolis-Colts-jerseys/ Indianapolis Colts
http://www.sportjerseysclub.org/NFL/wholesale-Baltimore-Ravens-jerseys/ Baltimore Ravens
http://www.sportjerseysclub.org/NFL/wholesale-Dallas-Cowboys-jerseys/ Dallas Cowboys
http://www.sportjerseysclub.org/NFL/wholesale-Dallas-Cowboys-jerseys/ Jacksonville Jaguars
http://www.sportjerseysclub.org/NFL/cheap-NFL-Hats/ NFL Hats
http://www.sportjerseysclub.org/NFL/wholesale-Atlanta-Falcons-jerseys/ Atlanta Falcons
http://www.sportjerseysclub.org/NFL/wholesale-Buffalo-Bills-jerseys/ Buffalo Bills