Guest Post: Credit Events And The Lire

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Mon, 09/12/2011 - 10:36 | 1659486 Everybodys All ...
Everybodys All American's picture

Seriously how is that not a credit event? Why doesn't Greece use this same clause?

Mon, 09/12/2011 - 10:37 | 1659499 oogs66
oogs66's picture

because the lawyers always win...regulators should have had this on exchanges long ago

Mon, 09/12/2011 - 10:48 | 1659537 X.inf.capt
X.inf.capt's picture

amen, brother

Mon, 09/12/2011 - 10:48 | 1659535 skistroni
skistroni's picture

According to the ISDA paper, we could offer our local currency if our country was rated AAA by Moody's or Fitch or S&P.

Tough luck.

We'll do it anyway. Coming soon in a weekend near you. 

Mon, 09/12/2011 - 10:52 | 1659550 citta vritti
citta vritti's picture

Greece not G-7 (according to Wikipedia = Canada, France, Germany, Italy, Japan, U.K., U.S.) 

Mon, 09/12/2011 - 10:35 | 1659488 Mike2756
Mike2756's picture

Can the u.s. annex mexico and use pesos to pay off the debt?

Mon, 09/12/2011 - 10:53 | 1659555 Cthonic
Cthonic's picture

Mexicans can't even pay off their own debt with pesos; much of it is denominated in yen and euros.

Mon, 09/12/2011 - 10:36 | 1659495 HROLLER
HROLLER's picture
CIA Whistle Blower Susan Lindauer‏

Please watch minute 7 and on.....

Mon, 09/12/2011 - 14:05 | 1660258 Pegasus Muse
Pegasus Muse's picture

You need to watch it.  You need to send it to your friends and family.  The corruption and evil runs so deep people .... so deep ....

Mon, 09/12/2011 - 10:37 | 1659500 Mitzibitzi
Mitzibitzi's picture

Also, isn't that kinda, sorta.... well, exactly like the 'competing local currencies' thing that we're told is absolutely not allowed in any way, shape or form?

Mon, 09/12/2011 - 10:38 | 1659505 IBelieveInMagic
IBelieveInMagic's picture

Educative post -- good to know the loopholes thru which this problem will be punted!

Mon, 09/12/2011 - 10:39 | 1659507 Irish66
Irish66's picture

Looks like GS has got some news coming

Mon, 09/12/2011 - 10:39 | 1659510 LawsofPhysics
LawsofPhysics's picture

When bogus paper is the problem, there is no paper solution.

Mon, 09/12/2011 - 10:41 | 1659516 Derpin USA
Derpin USA's picture

Peter's a great analyst, but he seems to be committed to rearranging the deck chairs. I guess as long as the band is playing, right?

Mon, 09/12/2011 - 10:42 | 1659518 RobotTrader
RobotTrader's picture

Some kind of scheme or scam will be concocted, no doubt to rescue Europe.

Some program nobody here has thought of yet.

Mon, 09/12/2011 - 11:01 | 1659590 tocointhephrase
tocointhephrase's picture

We have a spillage on isle 17. Robo to isle 17, Robo to isle 17.

Mon, 09/12/2011 - 11:03 | 1659608 tocointhephrase
tocointhephrase's picture

did you sign in twice or sommit?

Mon, 09/12/2011 - 10:52 | 1659551 snowball777
snowball777's picture

No, Peter, Italy is not England. Logic FAIL.

Mon, 09/12/2011 - 10:55 | 1659564 Gandalf6900
Gandalf6900's picture

I still have some Lira, it looks much more real than the Euro monopoly money

Mon, 09/12/2011 - 10:58 | 1659573 milanitaly
milanitaly's picture

We will have Dracma soon, and will be srtonger than the German-Franch Euro.

Mon, 09/12/2011 - 11:07 | 1659628 Bam_Man
Bam_Man's picture

I am looking forward to the Italian re-introduction of the Lire.

It will make my favorite Brunello, Barolo and Chianti Classico more affordable!

Mon, 09/12/2011 - 10:59 | 1659580 TJ00
TJ00's picture

As I recall from the deliberations of the Maastricht Treaty originally the wording for the Euro was for a "common currency" which would have allowed the Euro along side national currencies, this was changed to "single currency" so the Euro is the only legal tender in those countries within the Euro zone so it is not legally possible to reintroduce the Lire without leaving the Euro and it is not possible to leave the Euro without leaving the EU, so the idea put forward in the article is totally false.

Mon, 09/12/2011 - 11:02 | 1659599 tocointhephrase
tocointhephrase's picture

It so fucked even a whore would need to do some over time and then some!

Mon, 09/12/2011 - 11:05 | 1659619 Bam_Man
Bam_Man's picture

At this point, it is best to stay away from "paper" assets altogether.

The level of fraud and deception will reach mind-boggling levels to keep insolvency and default hidden from view.

Mon, 09/12/2011 - 11:10 | 1659652 spanish inquisition
spanish inquisition's picture

Could this be the return of reasonably priced Italian shoes?

Mon, 09/12/2011 - 11:18 | 1659689 paulie
paulie's picture

Yeah it could.

We will be exporting (again, finally) and you people will enjoy the fine Italian craftmanship at reasonable prices.

Plus you might consider buying a house in Tuscany or Sicily or Sardinia. And maybe a cheap Alfa. The Giuliettas are nice particularly if they cost half what you pay for a golf.

Like in good old 80s.



Mon, 09/12/2011 - 11:16 | 1659681 korthaj
korthaj's picture

Banking here in europe is starting to show signs of problems, "We currently have technical problems which means we can not set prices for our products. We will be back as soon as we can!", translated from swedish

The broker insists its not liquidity problems just technical problems.


Mon, 09/12/2011 - 11:20 | 1659701 wombats
wombats's picture

If Italy (and Greece) exited the Euro via this mechanism then obviously their new Lira and Drachmas would be nearly worthless, but what about the Euro?  Wouldn't the Euro gain in value (relative to the dollar) by getting rid of Italy and Greece?

Mon, 09/12/2011 - 11:20 | 1659706 paulie
paulie's picture

CDS should be declared illegale altogether.

They are the cause of the current crisis and they are only a means of getting around the Basel 2 agreements.



Mon, 09/12/2011 - 11:40 | 1659801 Gordon Freeman
Gordon Freeman's picture

We are so far through the looking glass, at this point, that all of this is just the purest conjecture.

Mon, 09/12/2011 - 11:52 | 1659852 bogey4
bogey4's picture

lira - singular

lire - plural

Mon, 09/12/2011 - 12:39 | 1659988 Negro Primero
Negro Primero's picture problema:

"Italy claims Germany must pay compensation to victims of Nazi war crimes, but Germany refuses." ....and Greece too: "Also arguing against Germany is Greece, representing relatives of the victims of a 1944 German massacre at Distomo, in Greece.",,15380969,00.html

Tue, 09/13/2011 - 21:59 | 1665980 moxia19
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