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ISDA CDS Trigger Decision Is Unanimous

Tyler Durden's picture




 

EMEA DC Statement

March 9, 2012

In light of today’s EMEA Determinations Committee (the EMEA DC) unanimous decision in respect of the potential Credit Event question relating to The Hellenic Republic (DC Issue 2012030901), the EMEA DC has agreed to publish the following statement:

The EMEA DC resolved that a Restructuring Credit Event has occurred under Section 4.7 of the ISDA 2003 Credit Derivatives Definitions (as amended by the July 2009 Supplement) (the 2003 Definitions) following the exercise by The Hellenic Republic of collective action clauses to amend the terms of Greek law governed bonds issued by The Hellenic Republic (the Affected Bonds) such that the right of all holders of the Affected Bonds to receive payments has been reduced.

The EMEA DC has resolved to hold an auction with respect to the settlement of standard credit default swaps for which The Hellenic Republic is the reference entity. To maximise the range of obligations that market participants may deliver in settlement of any such credit default swaps, the EMEA DC  has agreed to run an expedited auction process such that the auction itself will take place on March 19, 2012. In light of this expedited auction process, market participants should submit any obligations that they would like to include on the list of deliverable obligations to ISDA as soon as possible.

Full determination:

 

 

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Fri, 03/09/2012 - 15:55 | 2240811 GeneMarchbanks
GeneMarchbanks's picture

Game Over, bitchez!

Fri, 03/09/2012 - 15:57 | 2240822 Ahmeexnal
Ahmeexnal's picture

Time to print.
Will there be a major PM blowout sale?
Hope there is. It will be the last one for decades to come.

Fri, 03/09/2012 - 15:57 | 2240834 narapoiddyslexia
narapoiddyslexia's picture

Nothing will happen, as Ben knew weeks ago how this would play out. Its all been orchestrated by those doing God's work.

Fri, 03/09/2012 - 15:59 | 2240842 hedgeless_horseman
hedgeless_horseman's picture

 

 

So this is why you buy insurance.

Fri, 03/09/2012 - 16:00 | 2240861 Michael
Michael's picture

ISDA Terrorist Extremists!

Fri, 03/09/2012 - 16:00 | 2240868 Ahmeexnal
Ahmeexnal's picture

SHTF....in a couple of seconds!

Fri, 03/09/2012 - 16:04 | 2240901 Michael
Michael's picture

Happy Friday.

Fri, 03/09/2012 - 16:11 | 2240966 brewing
brewing's picture

market seems to be taking it all in stride...

Fri, 03/09/2012 - 16:16 | 2241004 Ahmeexnal
Ahmeexnal's picture

Online banking will be among the first to be taken out.
Then the ATMs.
Bankrun 2012.

Fri, 03/09/2012 - 16:25 | 2241061 LowProfile
LowProfile's picture

Probably a bit premature on that...  First gold has to go to much higher levels, capital controls imposed, etc.

I give it another year.

Remember: Rome wasn't burnt in a day.

Fri, 03/09/2012 - 17:51 | 2241509 Troll Magnet
Troll Magnet's picture

nobody, i mean NOBODY saw this coming.

Fri, 03/09/2012 - 19:10 | 2241592 TruthInSunshine
TruthInSunshine's picture

The big story is when this happens, and oh it will happen, with Spain.

Think I'm pessimistic rather than realistic?

Go ahead and explain how Spain will be saved and who will save them (use arithmetic to demonstrate your point, if you are able to).

Spain has already begun to snowball off the cliff's edge.

Try and buy CDS on Spanish sovereign debt default in - give it couple of months or so.

German jawboning taking place right now about 'new centers of power' and a lot of other re-arranging of the deck chairs? Yep.

The only real question out there now is whether they can marshal all the resources, with a unified Germany and France (good luck with that...which will have a much different composition in its government, inevitably at greater odds with Germany), to put a firewall around Italy, which I wish them the best of luck with.

But it's not going to take the inevitable default of Spain, and the possible default of Italy, to spread the pox. The ragin' contagion is already out of the box.

 

Fri, 03/09/2012 - 19:20 | 2241740 i_fly_me
i_fly_me's picture

The true 'game over' part of this is in the qualitative impact (thank you, Mr. Bass).  The question isn't really how much will it cost everyone to settle all this out, as mentioned earlier they'll just print it.  The real impact of this "event" is the confidence hit to sovereign debt in general and the fact that restoring that confidence will be impossible. 

The European circle-jerk-debt-whirlpool now can claim the first true western default in over half a century and just that fact will add 50 basis points to everyone's next round of financing (well ... almost everyone's).  The seal has been broken and the first visible trickles of piss are running down Europe's leg.  Next up, Portugal or Spain or Italy; and while we begin to run through the same Kabuki theater with those doomed economies, you-know-who will 'disappoint' everyone with their inability to stay committed to meaningful austerity and the confidence/cost-of-debt all around will take another hit. 

Late next year, Europe will look like an emergency room with new victims staggering in by the minute demanding free health care.  As transfusion are shipped in from the US by the truckload, suddenly we'll look out and realize that Japan is lying dead in the rotunda with an 8-handle in their hands.  As everyone pauses to absorb that, a nurse will rush in and report (too loudly) that some of the doctors are starting to run fevers ...

Fri, 03/09/2012 - 16:25 | 2241063 markmotive
markmotive's picture

Year 2000 redux.

Out with a whimper.

Fri, 03/09/2012 - 16:28 | 2241074 Transformer
Transformer's picture

"The EMEA DC has resolved to hold an auction with respect to the settlement of standard credit default swaps for which The Hellenic Republic is the reference entity."

 

Call me stupid if you want, but what the hell does that mean?   Auction?   Auction what?  Have I been missing this whole thing all along, is the CDS thing really done on Ebay?

Fri, 03/09/2012 - 17:40 | 2241435 CompassionateFascist
CompassionateFascist's picture

It means the TBTFs have a way to make the CDS's pay...for themselves, while screwing the daylights out of all the smaller financial entities, Sovereigns included. I am somewhat surprised at this, because awhile back Ann Barnhardt, of whom I'm a big fan, said they wouldn't declare a Credit Event at all. Just ignore it. On a related matter, Ann, aka Joan d'Arc II, yesterday evening launched a fairly ferocious attack on my humble self at her site (http://barnhardt.biz) where she conflated me with several possibly less friendly correspondents. Since she's gone so public, and may well delete my e-mail reply w/o reading it, I hope fellow Fight Club members will indulge me for I moment as I do so here:

          SUBJECT: (almost) Made my Day

          Since I consider every day a Gift from God (the true God, not your PaulineRomanMysteryCult), I can't say you made my day. Close, though, and thanks for 2nd promotion. First, I'm a "perverted, evil monster", and now I'm Satan Himself and, indeed, the very apotheosis of the "universal story of Mankind, fallen". Actually, you have conflated two, possibly three of your e-mail correspondents in this latest rant. I never inquired about your "ethnic heritage"; never suggested you were a Jew; someone else did. Judging from your physical features and expressive behavior, I'd aver you're Anglo-Saxon. Nor did I inquire about your prior religion. Again, someone else. And, yes, I did proposition you, but that's not "rape"; you're a good looking woman, these things happen. In fact, now that you've hunted down my address, feel free to drop by anytime; phone first, in case I'm on the road. You can be on top, at least for awhile, and I promise not to claim rape. Now, I'm going over to ZH, flip a few hand grenades, spread the Higher Wisdom. Back later to deal with your comments on the grand Marxist/Islamist conspiracy...(etc.)   

         

Fri, 03/09/2012 - 19:48 | 2241802 s2man
s2man's picture

WTF, mate?

Fri, 03/09/2012 - 19:59 | 2241844 Calmyourself
Calmyourself's picture

Playing pattycake with a religious gal makes him feel all naughty and shit..  However, this girl would kick his ass for him..  I notice you did not comment on her other revelations regarding your ahem, habits as it were.. Cf?..

Fri, 03/09/2012 - 20:22 | 2241892 CompassionateFascist
CompassionateFascist's picture

Yaawwwnnnn....google "nun", image of. There's a Bad Habit. I think if "35-year-old virgin" Annie B. got some good lovin', she'd be way less wingding. As it stands now, never mind the Jihadists....we better hope she never gets her hands on a nuclear weapon.

Sat, 03/10/2012 - 01:16 | 2242574 LowProfile
LowProfile's picture

Too bad you're probably not Jewish.  If you were, and you did get her in the sack, the memory of it would be one Hell of a deposit for the spank bank!

Sat, 03/10/2012 - 04:16 | 2242767 Transformer
Transformer's picture

This is funny.   Way funny.  But would someone please explain the Auction language?  I'm a frequent Ebayer, but still don't get it.

Fri, 03/09/2012 - 16:29 | 2241079 MillionDollarBonus_
MillionDollarBonus_'s picture

Obama really should have intervened here. This is a matter of national importance as it severely impacts America's top tier investment banks. I'll admit it ... I'm seriously thinking about voting for Mitt Romney this year. We need a President who will stand up for our systemically important financial institutions, even across national boundaries. This simply inexcusable. I'm very disappointed.

Fri, 03/09/2012 - 16:33 | 2241112 LowProfile
LowProfile's picture

 

Obama really should have intervened here.

Yes, it's taking far to long to burn.  We need more gasoline!

Fri, 03/09/2012 - 16:52 | 2241231 CIABS
CIABS's picture

There shouldn't BE any systemically important financial institutions.

Fri, 03/09/2012 - 17:27 | 2241408 resurger
resurger's picture

systemically important financial institutions & Too Big to Fail are not the same CIABS

/s/

Fri, 03/09/2012 - 20:48 | 2241961 Temporalist
Temporalist's picture

MDB you are the koolaid in my Everclear punch

Fri, 03/09/2012 - 16:38 | 2241148 t_kAyk
t_kAyk's picture

i'm voting for kodos.

Fri, 03/09/2012 - 16:39 | 2241155 Teamtc321
Teamtc321's picture

Crack another cool one MDB, it will be just fine. He promised he wouldn't cum in your mouth. 

Fri, 03/09/2012 - 17:26 | 2241223 hangemhigh
hangemhigh's picture

TO: MDB

"We need a President who will stand up for our systemically important financial institutions, even across national boundaries. This simply inexcusable. I'm very disappointed."

dude....i'm with you...what we need is a brokered convention with none of this sissy koch 'bro half stepping...no jeb bushes...no chris christies.  there's only one man for this job and that's 'nose candy' jim cramer.....  he'll need a front running mate he can rely on...i think larry 'bohica' kudlow rounds out that ticket nicely.............

Fri, 03/09/2012 - 16:53 | 2241240 Fidel Sarcastro
Fidel Sarcastro's picture

FUCK OFF MillionDollarBonus - you fucktard piece of shit!

Fri, 03/09/2012 - 17:21 | 2241358 Zero Govt
Zero Govt's picture

MillionDollarBonus: "I'm seriously thinking about voting for Mitt Romney this year."

no doubt you seriously considered voting for Bumma last time.. look where that got you

don't take yourself so seriously, nobody else does

Fri, 03/09/2012 - 18:41 | 2241653 eatthebanksters
eatthebanksters's picture

I agree with you regarding Mitt Romney, but on the rest you can't be real...I have read your responses on many things going back a while, I am hoping you are just a smart person with a very clever and dry sense of humor...

Sat, 03/10/2012 - 04:55 | 2242781 StychoKiller
StychoKiller's picture

Obamatron is too busy not driving Chevy Volts...

Fri, 03/09/2012 - 17:06 | 2241297 DoChenRollingBearing
DoChenRollingBearing's picture

@ Ahmeexnal

Just pulled $500 out of the bank 15 minutes ago, all OK.

Fri, 03/09/2012 - 17:30 | 2241412 Hugo Chavez
Hugo Chavez's picture

In Peru? You can have four girls all night long for that and dinner and drinks for five.

TCT here, dochen, long story.

Fri, 03/09/2012 - 18:41 | 2241655 DoChenRollingBearing
DoChenRollingBearing's picture

I'm 56 and will happily settle for the ONE peruana I have.  The drinks part sounds good though.  

We will be in Peru soon, trying to figure how to sell more bearings.  And eating yummy food...

Before we go, I will be pulling $500 per day out of the ATM...

Fri, 03/09/2012 - 16:04 | 2240903 Eclipse89
Eclipse89's picture

I was there.

Fri, 03/09/2012 - 16:14 | 2240992 Thamesford
Thamesford's picture

For goodness sake - someone call John Corzine. Can't he "vaporize" some of these obligations?

Fri, 03/09/2012 - 17:29 | 2241418 JPM Hater001
JPM Hater001's picture

He's really a specialist at vaoprizing positive account values.

Better call Joseph Massino...he knows how to get the money back from Greece.

Fri, 03/09/2012 - 18:42 | 2241658 eatthebanksters
eatthebanksters's picture

What would happen if some account vaporized John Corzine?

Fri, 03/09/2012 - 16:04 | 2240876 Waffen
Waffen's picture

Mother fucker. If this is baked in, this world is "fuck All"

Fri, 03/09/2012 - 16:11 | 2240962 narapoiddyslexia
narapoiddyslexia's picture

Well, I hope I'm wrong, but my cynicism has grown like the US debt, over the course of the last two years.

Its all almost certainly a charade. Only if the events of Iceland are repeated, do we have any chance at being free of the slave yoke of the banks.

Fri, 03/09/2012 - 16:21 | 2241041 cossack55
cossack55's picture

"My Island tis of thee,

 sweet island of LIBERTY

  of thee I sing."

If it was not for the volcanos and the fact I hate seafood, I would be makin' the Iceland move.

Fri, 03/09/2012 - 16:32 | 2241102 Calmyourself
Calmyourself's picture

Horny blondes named Helga, I'll take my chances with volcanoes..

Fri, 03/09/2012 - 17:08 | 2241308 Nobody For President
Nobody For President's picture

Hey hey - the whole dam country is hot...

Fri, 03/09/2012 - 16:49 | 2241213 Benjamin Glutton
Benjamin Glutton's picture

no volcanoes...just the occasional hurricane.

 

http://en.wikipedia.org/wiki/Conch_republic

Sat, 03/10/2012 - 05:00 | 2242785 StychoKiller
StychoKiller's picture

Prelude to the secessions to come...

Fri, 03/09/2012 - 16:38 | 2241146 FinHits
FinHits's picture

€ 3 billion exposure is nothing. Net is net, and gross was meaningless. Completely predictable.

The scaremongering banks were just completely dishonest about the "Lehman II" impact the Greece default would have had. Shame we did not get the real default in Greece, as that would have been just as meaningless non-event.

Instead we got this pointless Bailout II.

Fri, 03/09/2012 - 17:35 | 2241453 Hugo Chavez
Hugo Chavez's picture

Not pointless for the banks that got bailed out of paying up on cds on 100 percent of the bonds.

Fri, 03/09/2012 - 15:59 | 2240858 DoChenRollingBearing
DoChenRollingBearing's picture

So, when do we see the ISDA and the banks start fighting over who gets left holding the bag?  Is this indeed Game Over?

Fri, 03/09/2012 - 16:02 | 2240889 GeneMarchbanks
GeneMarchbanks's picture

When we realize that there aren't enough lawyers for this one.

Fri, 03/09/2012 - 16:12 | 2240970 macholatte
macholatte's picture

 

Doubtful this is "Game Over" since this is "THE Game."

GS is the Pimp. The PIIGS are the whores and the sheeple are the the John.

Everything just might trickle down to some twenty ninth lower tier LLC shell entity that has zero assets and no capacity for anything but took all the risk and, coincidentally, needs a US Government bailout.

Somewhere, somehow, the US Tax Payer is going to take it in the ass one more time, with no reach around.

 

 

 

Fri, 03/09/2012 - 16:24 | 2241057 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

The market is being run by HFT's. To them, there is no game over.

Fri, 03/09/2012 - 16:35 | 2241123 Calmyourself
Calmyourself's picture

Thanks macho, no NOT game over..  Another opportunity to break the law and condition you to whine and cry and not do shit..   You should just watch this for the methods of lawlessness and the propaganda methods so when the shit gets real your ready before the neighbors..  That way you eat their dog first..

Fri, 03/09/2012 - 19:43 | 2241792 Au_Ag_CuPbCu
Au_Ag_CuPbCu's picture

Only one more time?  TG I was worried...

Fri, 03/09/2012 - 16:04 | 2240905 jus_lite_reading
jus_lite_reading's picture

Sad but true nara. However the extending and pretending is almost over. There is a great conscience enlightenment taking place.... TPTB know this and are preparing the lifeboats...

Fri, 03/09/2012 - 16:06 | 2240918 Ahmeexnal
Ahmeexnal's picture

lifeboats? is that what FEMA camps/gulags are called?

Fri, 03/09/2012 - 16:07 | 2240934 resurger
resurger's picture

lynch them all

Fri, 03/09/2012 - 16:08 | 2240943 jus_lite_reading
jus_lite_reading's picture

The FEMA camps are for the Jersey Shore/Nike sneaker riot types who roam the streets after martial law goes into effect... 

Fri, 03/09/2012 - 16:35 | 2241128 Dickweed Wang
Dickweed Wang's picture

So is my AK47 . . . .

Fri, 03/09/2012 - 16:42 | 2241172 Are you kidding
Are you kidding's picture

The NEW "section 8 housing". The NEW food provision system. Better there than on the streets. About time really. I always thought tent cities would teach the lesson better than the luxury they get now. Round up the brown people...and put them to work damn it! We wouldn't have an illegal immigrant problem if our welfare system wasn't so generous.

Fri, 03/09/2012 - 16:37 | 2241136 SheepDog-One
SheepDog-One's picture

Yea really jus_lite, who do they think theyre 'fooling' at this point? No one with any real money, thats for sure. So therefore its pointless, and therefore the endgame is near.

Fri, 03/09/2012 - 16:04 | 2240911 pkea
pkea's picture

the game is just starting....there is a feeling that there is a surprise in store

Fri, 03/09/2012 - 16:42 | 2241173 Irish66
Irish66's picture

IT DOESN"T SAY DEFAULT

Fri, 03/09/2012 - 16:56 | 2241259 mr. mirbach
mr. mirbach's picture

<----- "This is transitory"

<----- "Nobody could have seen this coming"

Fri, 03/09/2012 - 16:02 | 2240888 DormRoom
DormRoom's picture

wtf.. Wasn't there a report saying a Greece default would cost $1T for the Eurozone to plug. 

And god knows what the cascading effects would be.  Yet the equity markets are green..

 

Fri, 03/09/2012 - 16:08 | 2240939 Al Huxley
Al Huxley's picture

Probably because everybody knows the only way to cover this off is by more money printing.

Fri, 03/09/2012 - 16:45 | 2241191 SheepDog-One
SheepDog-One's picture

So then here comes $6 and $7 gas real soon if we're already looking at flodding in further trillions. Should make for a real interesting spring/summer, not to mention fall. 

Fri, 03/09/2012 - 16:15 | 2241000 The Beam
The Beam's picture

Because, for the most part, there is a correlation of "The US$ vs everything else" and has been that way since the crisis started. When I see the trend break and it goes commodities vs. the world, then I will know the end game is here.

Fri, 03/09/2012 - 16:18 | 2241020 ZeroPoint
ZeroPoint's picture

5 dollar silver? That beeping you hear is my 19' truck backing up ready to load up.

Fri, 03/09/2012 - 16:37 | 2241140 SheepDog-One
SheepDog-One's picture

I think he meant $5 gas.

Fri, 03/09/2012 - 18:07 | 2241559 Troll Magnet
Troll Magnet's picture

sorry to disappoint you, ZeroPoint.  i've already loaded up all the silver at $20 and there's none left.  but we do have some SLV certificates in stock if you care to...

Fri, 03/09/2012 - 18:21 | 2241594 Cadavre
Cadavre's picture

Time to print.

Gold up. USD up. Indexes up. Wishful prints or are all western fiats tanking?

Fri, 03/09/2012 - 15:59 | 2240857 battle axe
battle axe's picture

Amazing the ISDA actually triggered the CDS's. I thought I would never see the day. 

Fri, 03/09/2012 - 16:02 | 2240885 Michael
Michael's picture

Completely un-expected except in bazaaro opposite world of CNBC.

Fri, 03/09/2012 - 16:03 | 2240892 MsCreant
MsCreant's picture

We ain't seen it yet. I don't know. Chances are someone will change the rules retroactively somewhere to keep the Ponzi up a little longer.

Someone needed to do something that looked decisive. Stay tuned.

Fri, 03/09/2012 - 17:16 | 2241339 cosmictrainwreck
cosmictrainwreck's picture

Retroactive rule changes! LOL. So true. Been the story de jour the past _______ months. Fuckers.

Sat, 03/10/2012 - 05:04 | 2242787 StychoKiller
StychoKiller's picture

What if no one meets the Auction reserve requirements?

I'm completely lost at this point.

Fri, 03/09/2012 - 16:03 | 2240898 westerman
westerman's picture

They don't have a choice. If they don't trigger it then the whole system with CDS will collapse. Every one would sell there CDSs tomorrow. Why own insurance if the insurance company never pays. Insurance companies must pay to kepp customers.

Fri, 03/09/2012 - 16:09 | 2240949 Al Huxley
Al Huxley's picture

Exactly.  Easier just to print up some more money and pay out.

Fri, 03/09/2012 - 16:15 | 2241001 HoofHearted
HoofHearted's picture

But more importantly than getting out of CDS, everybody would get the hell out of sovereign debt. If you can't hedge it, then you don't want to be in it. this is just more of the CONfidence game of sovereign debt. Let's keep this merry-go-round spinning just as long as we can, say TPTB.

Fri, 03/09/2012 - 16:42 | 2241168 LaLiLuLeLo
LaLiLuLeLo's picture

bingo. the size of the bond market makes the stock market look like a day care center. DO YOU KNOW WHERE YOUR CHILDREN ARE?

Fri, 03/09/2012 - 16:59 | 2241269 css1971
css1971's picture

hmm, but the fact of the matter is, the bondholders did in fact get fucked over really badly. Whethere there is a token CDS payment to a few holdouts is irrelevant.

If you are a bondholder you can expect to be fucked over really badly. They'll just put a gun to your head, tell you to sign and poofff it's all voluntary, except for a couple of piddling little hedge funds.

CDS are effectively useless now.

Fri, 03/09/2012 - 16:11 | 2240965 jus_lite_reading
jus_lite_reading's picture

>>"Why own insurance if the insurance company never pays."<<

Now you are catching on! The game is already over!! Ever see a game of musical chairs?

Fri, 03/09/2012 - 16:46 | 2241201 SheepDog-One
SheepDog-One's picture

Yep, and it really sucks when they plunge into their chairs and find they were all just termite eaten splinters unable to hold even a few pounds.

Fri, 03/09/2012 - 17:29 | 2241417 stopthejunk1
stopthejunk1's picture

lol.  Can I buy a swap against some of these mixed metaphors? 

Fri, 03/09/2012 - 16:21 | 2241045 Robot Traders Mom
Robot Traders Mom's picture

They can't sell if there isn't another side to the transaction.

Put it on the books with the rest of the garbage marked to par...

Fri, 03/09/2012 - 16:30 | 2241086 Oracle of Kypseli
Oracle of Kypseli's picture

Funny thing but the largest CDS holders of Greek default are Greek banks.

Fri, 03/09/2012 - 16:35 | 2241124 MsCreant
MsCreant's picture

That article appeared here, that's right!!

Fri, 03/09/2012 - 16:04 | 2240908 Agent P
Agent P's picture

They had to trigger it at some point or the CDS market would die...you never kill a golden goose.

Fri, 03/09/2012 - 16:22 | 2241048 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

My wild guess is the banksters are underestimating the amount of risk out there. "Ahhh, it won't effect us. We can just sell more CDS and get bailed out!" Didn't stocks rise a few days after the Lehman BK before crashing everything?

Fri, 03/09/2012 - 16:13 | 2240981 There is No Spoon
There is No Spoon's picture

So I guess we now know that JP Morgan and Goldman are long Greek CDS

Fri, 03/09/2012 - 16:28 | 2241072 MsCreant
MsCreant's picture

Yeah, they helped Greece lie about how bad their debt was so they could get into the union. They knew they would default. 

They make money coming and going. There is no sherrif so why the fuck not?

Eat it Bitchez!

Fri, 03/09/2012 - 17:39 | 2241470 resurger
resurger's picture

i think they convinced everyone that no "Credit Event" will happen and started buynig shit loads of CDS's worth Trillions

 

things will unfold soon

Fri, 03/09/2012 - 16:25 | 2241060 Troy Ounce
Troy Ounce's picture

 

 

 

Do not worry; it is a set-up and has been rehearsed a hundred times for various options.

ISDA = Government of Greece = lenders = Goldman Sachs

The best what Greece population can do is destroy their financial economy

  • do not pay back bank loans.
  • stop paying taxes
  • resits anything the government does/wants.
  • Play stupid

The population will win.

 

 

Fri, 03/09/2012 - 20:23 | 2241900 Cadavre
Cadavre's picture

Not mentioned is the fact that the collateral for triggered CDS is the last batch traunch of Greek Bonds (its all in the fine print).

Fri, 03/09/2012 - 16:03 | 2240891 pkea
pkea's picture

Finally, we can open a new page of our life. Game on.

Fri, 03/09/2012 - 16:03 | 2240896 masterinchancery
masterinchancery's picture

Especially for the banks that wrote these CDS contracts. Oh wait, there are still German taxpayers!

Fri, 03/09/2012 - 16:14 | 2240988 vast-dom
vast-dom's picture

Not yet Gene, not yet -- they still haven't rehypothecated the bond derivatives, at least not to the Nth of the Nth.

Fri, 03/09/2012 - 16:15 | 2240999 johnQpublic
johnQpublic's picture

game over?

wtf happened?

auction what?

i read it

i dont get it

Fri, 03/09/2012 - 16:17 | 2241017 HoofHearted
HoofHearted's picture

Auction will determine the present value and then the losses have to be paid by those on the wrong leg of the contract.

This ends the game of "kick the can" about sovereign defaults and CDSs. The real game starts now as we see who wrote contracts that they cannot cover.

Fri, 03/09/2012 - 16:23 | 2241053 johnQpublic
johnQpublic's picture

yes

but what are they auctioning exactly?

to whom?

how is this process used to determine value?

arent auctions usually to sell something someone wants?

in this case, what would that be?

Fri, 03/09/2012 - 16:33 | 2241103 Oracle of Kypseli
Oracle of Kypseli's picture

Most auctions are there to sell things that no one wants. It's called price discovery

Fri, 03/09/2012 - 17:10 | 2241315 johnQpublic
johnQpublic's picture

i'm looking for a complete explanation

Fri, 03/09/2012 - 17:15 | 2241337 johnQpublic
johnQpublic's picture

point of fact, even the wiki page doesnt explain it to my satisfaction

Fri, 03/09/2012 - 19:56 | 2241831 mendigo
mendigo's picture

Do the cds trigger only for bonds which were not swapped - the hold-outs?

Fri, 03/09/2012 - 20:30 | 2241908 Cadavre
Cadavre's picture

to be paid by those on the wrong leg of the contract

Who is the payor, that is the question (or was it "to be or not to be ..."?) - and what if the answer remains the same old well worn lucky rabbit foot rhetorical fete `de night of the living dead: the old "full faith and credit" of the ECB shtick?

 

Fri, 03/09/2012 - 16:19 | 2241028 carbonmutant
carbonmutant's picture

Too much junk paper leads to spontaneous combustion...

Fri, 03/09/2012 - 16:29 | 2241085 MonsterZero
MonsterZero's picture

The ISDA, a private organization that rules on credit events, said that if triggered, overall payouts on CDS linked to Greece will be below $3.2 billion.

Zzzzz Game Over? you're playing the wrong game...

Fri, 03/09/2012 - 16:35 | 2241121 ElvisDog
ElvisDog's picture

It's not "Game Over". It's just the opposite. This was the only way to keep the ponzi going. If they didn't agree that this was a default, the CDS market would have vaporized and the global CDS hedge market would have collapsed. That would have been "Game Over". This was a small (~$2B I think I heard) payoff to keep the balls in the air.

Fri, 03/09/2012 - 17:18 | 2241347 Ahmeexnal
Ahmeexnal's picture

buuuuuuuuuuuuuut....

eurozone law can't have a member default on it's debt

 

Fri, 03/09/2012 - 17:33 | 2241444 chinaguy
chinaguy's picture

This was a small (~$2B I think I heard) payoff to keep the balls in the air.

ding, ding, ding...and..... we have a winner!

Fri, 03/09/2012 - 18:45 | 2241663 Amish Hacker
Amish Hacker's picture

 

Two billion doesn't seem like too much to pay, if it keeps the other players from leaving the CDS casino.

Fri, 03/09/2012 - 20:02 | 2241859 mendigo
mendigo's picture

The way it was played would not support confidence in cds - many took a beating

Fri, 03/09/2012 - 18:10 | 2241569 Translational Lift
Translational Lift's picture

Problem is....We know the name of the game but only ISDA knows the rules!

It will be interesting to see just how this plays out......

Fri, 03/09/2012 - 15:55 | 2240812 JailBank
JailBank's picture

And nothing happens?

Fri, 03/09/2012 - 15:58 | 2240847 GeneMarchbanks
GeneMarchbanks's picture

It's hard to feel like we're not being played, isn't it?

Fri, 03/09/2012 - 16:12 | 2240972 ziggy59
ziggy59's picture

More like urinated and defecated upon..

Fri, 03/09/2012 - 16:32 | 2241099 Andy_Jackson_Jihad
Andy_Jackson_Jihad's picture

Golden showerz, bitchez!

Fri, 03/09/2012 - 16:54 | 2241248 odatruf
odatruf's picture

That's Goldman, bitches.  Gold. Man. Sacks.

Fri, 03/09/2012 - 17:08 | 2241307 Hulk
Hulk's picture

Cleveland Steamer, Bitchez!!!

Fri, 03/09/2012 - 16:15 | 2240997 vast-dom
vast-dom's picture

The questoin is how hard are we being played and when will the real pain kick in.

Fri, 03/09/2012 - 15:55 | 2240816 New Revenue
New Revenue's picture

Or is it game ON!   Bitchez.

Fri, 03/09/2012 - 15:56 | 2240817 resurger
resurger's picture

GAME OVER MOTHER FUCKERSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

 

LOVE YOU TYLER

Fri, 03/09/2012 - 16:04 | 2240902 Josh Randall
Josh Randall's picture

Jumbo Ozaki: "Oooooooooooohh UNBEEEEAVABLE"

Fri, 03/09/2012 - 15:56 | 2240818 bigkahuna
bigkahuna's picture

Good.

Fri, 03/09/2012 - 15:56 | 2240821 redpill
redpill's picture

Now we know the answer to the question we've been asking for the last year.

 

And the answer was March 9.

 

Fri, 03/09/2012 - 16:06 | 2240924 jus_lite_reading
jus_lite_reading's picture

Actually its the 19th... :)

The shit doesnt hit the fan until then... 

After the 19th you can put the 23rd in your book for the next one...

Fri, 03/09/2012 - 16:13 | 2240947 resurger
resurger's picture

thanks to be the first to drop the rumor lite

why on the 19th? further details needed

Investors are Qing up , initial claims are 3 billion only, by the 19th it would be 120bn

thnx

Fri, 03/09/2012 - 16:17 | 2241012 battle axe
battle axe's picture

The 19th is the date that ISDA set for the Auction. 

Fri, 03/09/2012 - 16:20 | 2241035 resurger
resurger's picture

can't wait

btw get an Avatar Battle :>

 

Fri, 03/09/2012 - 16:27 | 2241067 john39
john39's picture

but if you were betting that someone or several someones couldn't pay out on CDS... or, that paying out would require a large sell off in some equities...  wouldn't you sell now and get out before everyone else does?

Fri, 03/09/2012 - 16:46 | 2241197 resurger
resurger's picture

just wait, we still have time for the selling .. things wont be good from now onwards

Fri, 03/09/2012 - 16:55 | 2241250 viahj
viahj's picture

i would think offloading commodities first, or throw more trash at the fed window, seeing how this $3b isn't a large number these days to cover...liquidating equities could be the spark of the the end and blood in the streets (if it triggered an equity market collapse). mess with pension funds and the sheep will stampede.

Fri, 03/09/2012 - 17:00 | 2241270 resurger
resurger's picture

Fuck the Sheep, i dont care if the markets drop to Zero!

And for Gold & Silver dropping, that would be sale and an opportunity to buy some more.

 

Fri, 03/09/2012 - 22:55 | 2242289 hamstercheese
hamstercheese's picture

If the 'markets' drop to zero, what are you going to buy your gold and silver with?

BTW...what is the EMEA? A determination committee, I see that, but where did this group of 15 originate?

Fri, 03/09/2012 - 16:28 | 2241076 battle axe
battle axe's picture

I know, I know. You are right resurger.


Fri, 03/09/2012 - 16:20 | 2241032 jus_lite_reading
jus_lite_reading's picture

>>"has agreed to run an expedited auction process such that the auction itself will take place on March 19, 2012. In light of this expedited auction process, market participants should submit any obligations that they would like to include on the list of deliverable obligations to ISDA as soon as possible."<<

 

Thats when they fight over the scraps... and the 23rd is when the banksters eat humble pie

Fri, 03/09/2012 - 16:21 | 2241039 resurger
resurger's picture

true that

Fri, 03/09/2012 - 16:07 | 2240931 Raymond_K_Hessel
Raymond_K_Hessel's picture

His name was Robert Paulson.

Fri, 03/09/2012 - 15:57 | 2240829 PontifexMaximus
PontifexMaximus's picture

Avanti popolo alla riscossa.....

Fri, 03/09/2012 - 16:03 | 2240894 Eclipse89
Eclipse89's picture

.....bandiera bianca, bandiera bianca!

Fri, 03/09/2012 - 16:21 | 2241044 Ahmeexnal
Ahmeexnal's picture

A venti chai latte alla rockas.

Fri, 03/09/2012 - 17:28 | 2241414 unrulian
unrulian's picture

what language is that?? they must be terrorists!!

Fri, 03/09/2012 - 16:25 | 2240830 Mercury
Mercury's picture

Good.

Not that they had much choice but good.

And Hoo-ray - a financial derivative that more or less performs as designed, under stress.

Fri, 03/09/2012 - 15:57 | 2240832 Marge N. Callz
Marge N. Callz's picture

This is super bullish.

Fri, 03/09/2012 - 16:40 | 2241160 Dickweed Wang
Dickweed Wang's picture

Did you say "this is super bull shit"?

Fri, 03/09/2012 - 15:57 | 2240838 Bullwinkle Moose
Bullwinkle Moose's picture

Holy Silver Eagles, Rocky.

Fri, 03/09/2012 - 16:16 | 2241005 snakeboat
snakeboat's picture

Now that you mention my lil friends, I just bought more today!      Prep continues, bitchy ones.

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