European CDS Ban Sends 1 Year Greek Bond Yield To 188%

Tyler Durden's picture

Well, it is not just the CDS ban, the fact that Greece is now done is also a modest factor, but since nobody can short Greek default risk unhedged, the only option is to short the bonds. As they did today en masse. Greek 1 Year bonds: the most liquid proxy for default in the absence of 1 Year CDS, closed at 183%, after hitting an all time high of 188%, following yesterday's 173% close. To all those who bought 1 Year Greek bonds when yields hit 100% a month ago because "they just couldn't possibly drop any more, and you would double your money in one year guaranteed", condolences for the 50% loss. We are certain that a new batch of bottom callers will emerge, this time calling for doubling your money in six months.... Then three.. Then one and a half... etc... Until finally Zeno's paradox catches up and you either double your money overnight or you lose it all.

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mynhair's picture

Greece paying vig daily yet?

AldousHuxley's picture

Is Greece warm during the winter. If they get kicked out of Euro, it would be a cheap place to visit.

mynhair's picture

Not warmer than FL; plus, I'm on the water.

Getagrip's picture

I'm a Greek debt buyer. What could possibly go wrong. GREAT YIELDS!!!

Johnbrown's picture

Trichet, while handing back the keys to the ECB, was rumored to be humming:

Buck Johnson's picture

Greece is on the water too, especially if you go to their hundreds of islands that they own.  Greece cannot possibly pay back anything that they are being lent.  It would be better to put them out of their misery and allow some type of orderly withdrawal from the EU and essentially the Euro.  And yes Greece will be cheap for awhile.

tekhneek's picture

I'm rich, BITCHEZ!!!

slewie the pi-rat's picture

way to go, t_k!

unhhh,...those aren't BAC puts.  you know that, right? 

nobody died, i hope!

HedgeAccordingly's picture

lolz. shwing! some ladies should distract you from reality for 30 seconds.. 

SemperFord's picture

Why don't most women look like that!

YesWeKahn's picture

Will I make a lot of greek children with her?

Thought criminal's picture

Too low yield... I'm not buying it.

fonestar's picture

I'll have to add some of these to my SoCal munis.... diversification is good!

HelluvaEngineer's picture

Honestly.  I'd like for someone to explain to me how this is not bullish.

mynhair's picture

Yeppers.  Greece gets to claim the spread blow-out as income, right?

Howdan's picture

Hahaha! Like it. But come on, are the Greek's really as corrupt, conniving, deceitful and manipulative as the Wall Street con merchants? On second thoughts.....

slewie the pi-rat's picture

yep!  greece can buy its paper back at a huge profit, now!

let's book that, danno!

this is a tranche-enabler as shorting greek debt lends new life to the ol' aegean empire, myn_h!

austerity has snapped their recessionary slingshot of hope skyward in a long shot of deadly default leading to that balance sheet bonanza fromerly known as income.  surely the greeks will use this windfall to buy the missing german gold...

...stay tooned...

knukles's picture

Hey Slewie, they don't even have to buy it back, they can just do that bookkeeping mark to market trick (when it works for 'em, of course) that who was it... BoA did?  Where because the price of their bonds went down, they can recognize that decline as a profit.
(making soft whining sound)
And in the  case of Greece, use the illusory accounting only not for real profit to offset some more of the not disclosed for real debt hidden in their stinkie jockstraps over on the island of Shankeritapuss. 

Rainman's picture

...if such a plan were workable wouldn't the Squid have figured it out for a hefty fee by now...?? +1 for outside the box diabolical thinking nonetheless.

buzzsaw99's picture

Where kin ah git me some of them greek bonds?

WestVillageIdiot's picture

Don't worry about it.  You'll be paying for them one way or another.  I just know that some junior jerkoff is loading them into my 401k fund right now.  Go get 'em, Fidelity. 

Lord Welligton's picture

You can't the ECB are buying everthing or not.

akak's picture

I just hope our old friend Leo Quislingasskiss has held onto all the Greek government bonds that he admitted purchasing and which he so actively promoted here earlier; moreover, I hope he has even bought more in the interim.  Have fun scribbling with your crayons on all that paper, little leo --- it will soon never be good for much else.

mynhair's picture

Didn't Leo croak on FSLR?

WestVillageIdiot's picture

He's still celebrating his long position in NBG which is now at a hearty $.54.  There is a decimal point after that dollar sign.  =) 

akak's picture

I think there is some old saying about a fool and his money ....

WestVillageIdiot's picture

Sadly, I have been that fool at times.  It is not fun. 

Hansel's picture

It sounded like Leo was having fun doing what he was doing, and he provided you with free content.  He has multiple sclerosis so the hate just seems misguided.

jm's picture

Whether he has multiple sclerosis or not, hating someone he doesn't even know outside of an anonymous blog because he has a different opinion is pathetic.

nmewn's picture

My opinion is, he was a dangerous statist who preyed on peoples emotions while counseling people on how best to invest their wages & savings. At the same time admitting to seeing two or three shrinks.

Akak was right for calling him out and took a lot of heat for doing it by those emotionally attached to Leo's "story".

akak's picture

Thanks nmewn.

To be honest, I found interacting with leo exceedingly distasteful, but his many venal, shamelessly amoral and utterly blinkered defenses of the corrupt and criminal financial and monetary powers-that-be --- on THIS site of all sites --- simply screamed for intelligent and principled response.  It was to ZeroHedge's discredit that he was even given a forum for his specious statist propaganda and for his puerile and insulting comments.

nmewn's picture

It needs to be said & stood on when someone takes it upon themself to right a clear wrong.

Actually, I think it is to ZH's credit that he was allowed to spew his garbage. He got blasted and rightly so. Leo was a statist shill of the first order who would not look at every angle and repeatedly refused to respond to clear evidence when presented...he was what he claimed others were.

A wolf.

It falls to a shephard to protect the flock, now some of the sheep know what a wolf can look like ;-)

akak's picture

Good points.

Although I would not put too many of the posters here in the category of "sheep".

knukles's picture

(bending over, spreading cheeks for udder zeitgeist enjoyment)

nmewn's picture

(wiping the blood from my nose)

nmewn's picture

Not at all, that was directed at others, the unseen, unheard.

I always think about the ones that don't comment...the ones who may be just passing through trying to form an opinion on this mess we find ourselves in or are just too timid to comment.

The ZH commenters are some of the best there is because we are not all traders & stock/bond got professionals in every field there is in here. And no one can be a professional at everything.

Its a marvelous place and I think when someone is clearly off the reservation or out of their mind (like Leo) its policed it should be.

fuu's picture

I disagree with the it being a discredit to ZH that he was given a venue. He was given a chance to speak, he spoke, fight club beat the shit out of him for it, and he left. Good, bad, or ugly it was emergent.

knukles's picture

Hear here.
Should we not condone Onkel Jagoff's Sicherheitsdienst amongst us, neither should we become.


akak's picture

Does the Gostak distim the doshes?

jm's picture

He was offering his "informed" commentary, take it or leave it.  Hopefully you left it.

No reason to hate somebody though.  He added some color to the joint.

akak's picture

He added some color to the joint.

Indeed he did.

And that color was brown.

In big, sloppy piles and smears.

WestVillageIdiot's picture

I had tons of people telling me that I was crazy not to buy real estate in 2006.  If I had followed their advice, which was very very pushy, would I have the right to hate them?  I know ZH'ers didn't fall for such shit but a lot of people did fall for Leo'esque advice in the real estate field.  Something tells me that family reunions in 2011 are not so familial for a lot of bagholders. 

jm's picture

I understand what you are saying.  If he is full of it, call him on it.  But the instant he said "buy Greek bonds", his credibility was over.  And he's gone... feels like speaking ill of the dead. 

But hating somebody...I don't have that much hate in me, and I'm real cool with that.

I've been conditioned that, when it comes to money at least, not to take it personal.  Taking it personal kills you.  Shrug it off and move on having learned something painful.

akak's picture

Personally, I have no problem whatsover speaking ill of the dead --- not of the evil dead, anyway.

Death, like illness or physical handicaps, does not absolve one of their sins, or at least should not absolve them.

jm's picture

Seriously, what did he ever do that classifies in your mind as evil? 

akak's picture

Quite simply, he repeatedly, nay, incessantly condoned, abetted and advocated surrender to the evil sociopaths who are robbing us blind and driving our economy and our very civilization into the ground.  If that is not reason enough for hate, what is?  Are not the active, willful and knowing enablers of evil not as bad as those they enable?

That is the trouble with wimpish, politically-correct, morally bankrupt Western society today: too many are afraid to call EVIL for what it is, or to even acknowledge that it exists in the first place.  I am not afraid to judge, nor to condemn when it is called for.

jm's picture

The demon that possessed Regan in The Exorcist... evil.

Hitler... evil.

Stalin... evil.

Pol Pot... evil.

Charles Manson... evil.

Child molesters... evil.

The Anthony chick... evil.

Leo... not even close.

If you can't see the difference, then I really don't think you are emotionally equipped for a happy life, man.