A Morning Rant - EFSF, Enron, AIG, CDS Clearing

Tyler Durden's picture

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heyligen's picture

Dexia loaned 0.5 billion to buy Dexia shares. Didn't end well.

jdelano's picture

What does it matter if MS posts a buck on DVA?  The street will look right through it and the stock will drop.  

LawsofPhysics's picture

Not in the short term. So the question is, do you trade for a living or not?

Dick Darlington's picture

Very bad news from Spain again.

Oct. 18 (Bloomberg) -- Defaults as a proportion of total
lending at Spanish banks rose in August as a real estate crash
and unemployment at 21 percent made it harder for borrowers to
pay back loans.                
     The bad loans ratio rose to 7.15 percent, the highest since
1994, from a revised 6.93 percent in July, the Bank of Spain
said today on its website.

And house prices...


bigdumbnugly's picture


has anyone seen the free and rational market lately?

(no picture posted as time regression technology would be necessary).

please dust off and nurse to health if found.  

damage's picture

I like this piss

gratefultraveller's picture

Many members of the german parliament had NO idea at all what they were voting for - not even the amount of money (Germanys liability, 111 billion Euro plus 20% "error margin" plus taxes on the above (another 43 billion Euro).

They even said so on the morning of the vote (in german, but the faces say it all).


aleph0's picture

@faces ...  someone Email them this ZH-Page ... and then make some photos !

TooBearish's picture

MS will git destroyed today on GS numbers

WiZlon's picture

The posting on CNBC about the EFSF beeing used as a Put-spread is, in my view, a market mover to the upside.  if the Germans's are dumb enough to buy that plan, then it will work, as the governments take the first x% in any bond losses.




A government backed put-spread is a good idea (unless you're a tax payer).  S&P also just bounced off 50 day EMA.  The market could rally from here!


slewie the pi-rat's picture

me!  me!  i know!

clifford the big red dog ate eveybody's CDS homework?

TwoHoot's picture

I read and read and read but everything boils down to one simple question - Who is going to take the losses on debt that will never be repaid? All the complex plans and compounding acronyms are just smoke, lights and mirrors to obscure the answer to that question.

Lets keep it simple - the taxpayers are going to inherit the debt simply because they do not have a direct seat at the negotiation table. Then, the taxpayers are not going to pay simply because they can't. Default (with or without inflation) is a certainty. Wholesale default is systemic failure (if not, someone will need to enlighten me as to why not)

The drama is fun. But for practical answers about how to survive global systemic failure, reread Alvin Toffler's "Power Shift" and update it with the ideas in Charles Hugh Smith's "Guide to Investing in Troubled Times".

Everything we knew about investing is obsolete. We are going to have to play it by ear from now on - there is no plan or script for the future.