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View From The Bridge: And They Think It’s All Over…
Submitted by Clive Hale from View from the Bridge
And they think it’s all over…
So Greece has been saved – is that right? Well according to ISDA (the International Swaps and Derivatives Association) a “Restructuring Credit Event has occurred with respect to the Hellenic Republic” which in the vernacular means the Greeks are bust; tell us something we don’t know! The importance of this statement is that credit default swaps (CDS) on Greek debt are now triggered and holders will have their losses made good. There were any number of scurrilous rumours that ISDA would not declare a credit event to preclude their illustrious members from paying out, but when the net downside of $3 billion needs to be shared out amongst the likes of Barclays, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan Chase, Morgan Stanley, UBS, BNP Paribas and Societe Generale, then a quick whip round in the bar after close of business and the jobs a good’un.
Their meeting went on for quite a lot longer than it takes to answer the question – “Has Greece defaulted? Yes or no.” – so it is quite likely that some on the list felt they were in for more than their fair share. Whilst the net exposure is small the gross tally is $68.9 billion according to Bloomberg so there is a lot of room for “error” here. In fact one Austrian bank, a “bad” bank left holding the baby (Greek CDS amongst other toxic waste) after an earlier reconstruction has owned up to a €1.3 billion hole in its balance sheet as a result. Undoubtedly they will not be the last casualty in this chapter, but it won’t be any of the “big boys” this time around or there wouldn’t have been a “credit event” would there?
Given the shenanigans in this apology for a currency “union” you really shouldn’t be surprised to discover that there is far more Greek debt around than we thought we had given them “credit” for. On top of the sovereign debt it seems there is another $100 billion or so of paper, issued by the Athens Urban Transportation Co, the Hellenic Railway and assorted Greek banks amongst others, “guaranteed” by the Hellenic republic. Guarantees in financial circles tend to come with a pinch of scepticism, but when combined with Greek mythology they become truly “heroic” assumptions. And no one thought to mention these obligations before putting the taxpayer on the hook for the €130 billion bailout? Heaven forbid that anyone gets to see the full picture…
And what did the politicos make of this deal of the century? The Greek finance minister, Evangelos Venizelos, said that the deal had helped Greece to avoid a “nightmare scenario” and given it a “new opportunity”. Blah, blah, blah! Have another box of cream donuts before you “waste away” along with your country’s economy. Far more realistically la Merkel admitted to the Bundestag that there were “no guarantees” (there’s that word again…) that the second bailout would work and that “the risks of turning away from Greece now are incalculable. No one can assess what consequences would arise for the German economy, or Italy, Spain, the eurozone as a whole and finally for the whole world.”
Well Angela, one way or another, I think we are going to find out just what those consequences are going to be sooner than you might think.
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New downtrend forming in GSR:
http://saposjoint.net/Forum/viewtopic.php?f=14&t=2626&p=36816#p36816
Desperately, desperately, trying to give a shit and ...er...still no.
What's the going rate for CDS on gold bullion these days?
Oh would you look at that, I don't need any. Silly old me...
This ongoing crap is severely harshing my buzz.
Kim Wilde:
http://www.youtube.com/watch?v=gt3svvb57j4
View from a bridge - Can't take anymore
View from a bridge - Can't take anymore.
I guess it all began about a year ago
Like a cheap love magazine
You know the kind you read about and have to laugh
At the pages in between.
Now I can't believe that fool inside is me
'cos Ijust can't face the world I've grown to see.
View from a bridge - Can't take anymore
. . .
I saw you kissing her
I saw you makin her
In the soft sheets in between.
But when you turned around I saw your eyes were fire
And you crashed out aU. my dreams
And like a fool Ijust stood there and let it go -
I should have fought right back and let my feelings show.
View from a bridge - Can't take anymore
. . .
You sure as hell knew how to make a fool outa me.
Well
you cut me down for the things you want
and now its killing me
oh -
But then a voice said jump and I just let go and I'm floating out in space.
But then I feel your arms and I turn around to a ghost without a face
And I just don't know what's fact or fantasy
'cos when I look below the bridge I see it's me.
View from a bridge - Can't take anymore
. . .
View from a bridge - Can't take anymore
. . .
View from a bridge - Can't take anymore
. . .
Why is it that people keep singing songs at me?
What do you think this is, American fucking Idol,..
Hi everybody! First time here...i was googling American Idol and this link came up in the search... What are you guys talking about...is there going to be abgreek version?
And what is CDS?
it was suppose to read...CD's....new one to be released soon! ;)
As soon as Sark is ousted the cracks will be visible canyons. Empire usually crumbles first at the periphery.
What makes you think Sarko's that important? What makes you think Hollande won't pull the exact same shit?
Netherlands will get downgraded
Our AAA weed = guaranteed
Yep; we have a dangerously high real estate bubble, waiting to pop.
Government hardly got 18bln austerities though parleament; no way an additional 16bln is gonna get through without a fight, hitting the middleclass full on. There's already are too many houses for sale, but nobody wants to lower prices, leaving them with debt to refinance. This is a sh*tstorm waiting to blow all over the Netherlands...
Seek advice from Iceland. Screw the IMF.
Say Cheese, much nicer....
Yep, their real estate market has been under water for decades and soon no dikes will save them from the comming flood.
Like I always say: IT'S BETTER TO LIVE HIGH AND DRY IN BELGIUM THAN SO DROWN IN HOLLAND!
Mark my words, global warming will be a bitch for the dutch.
The Netherlands, highest place below sea level...
Priceless, thanks.
http://squirrelers.com/2011/03/08/investment-bubbles-from-dutch-tulip-ma...
This "thing" is far from over!
Hope everyone has been smart, instead of having paper in their pocket they have some hard metals for when the full exposure happens of how the Euro experiment is over.
A state that has become a ward of the state, this is getting interesting. I wonder what the SNAP card will look like and can they be used in casinos and strip joints?
Clearly this is the best possible reason for gold and silver to be going down???
Explains it all, not.
Remain calm......all is well.
Another chunk of hot QE cash on the fire should do the trick.
Let's hope so eh...
If it doesn't go up soon I'm going to chuck it all in and buy some Greek Govt bonds, now that they've finally fixed it, once and for all...
That may be all that is left to get. Mish stated that some people from China flew in for a day looking for gold coins and left the next day.
Paper gold we've got in spades.......real gold......not so much.
I hear CNBC is running a special on gold today....I'm sure they'll enlighten us.
yeah, on how not to do it...
I still struggle to believe in Gold when there is clearly so much manipulation. Or am I just imagining it?
Dutch MSM has been very happy to announce that Greece, and with it Europe, is saved! Lying bastards!
Oh no! They lied to me AGAIN! How dare they?!?
Timmy's wife won't answer their home phone
Might as well buy 1 krugerrand now, after all it'll be worth $60k at some stage.
When it does hit 60k; you better buy a tank on solar power with that because walking the streets is as dangerous as tapdancing on a landmine
Greecing rhe skid for the PIIGs , Wheee, Wheee,Wheeee, Wheee!
Saying Greece is saved is as an annoying, and as realiity based as a commercial.
Well.....it looks like you pissed off at least one person.
Good job mate!
Yes, the Greek office of tourism.
It is important as this progresses to watch the level of writedown in pension funds versus banking assets. I am starting to think this entire circus exists to obfuscate the looting of pension funds.
If banks had sense they would have dropped the Greek Bonds and kept the CDS's naked.
That way they can clean up now the insurance is paying off.
...of course for every bank / hedgie which did this - there will be those who didn't - the CDS writers who are left exposed.
So overal everything may be hedged - but that only makes any sense if everyone holds equally the amounts of Greek CDS and Greek debt.
....and I know for a FACT they don't.
This should clear a few zombies.
How do the banks or insurance companies that sold the CDS hedge their exposure? Is it time for another AIG bailout?
I know I am not the first to wonder why it took so long to answer the simple "has Greece defaulted?" question..... the cycnic might suggest that was how long it took for the markets to close. But having had a weekend to absorb it all, the stock markets haven't budged
So everything is fine, right?
hmmmm, ISDA's voting board run by TBTF's??
Let's see...what other entity has that same structure?...oh yeah...the Fed.
lol, one might come to the conclusion that this is one big racket...but that would be conspiracy "crazy talk".
Check out the latest from the Capital Research Institute:
Currency Wars – Survival of the Weakest
Check out the latest from the Capital Research Institute:
Currency Wars – Survival of the Weakest
Greece and Portugal now yield 14%. Does anyone know if their citizens are experiencing real estate asset deflation and or consumer goods inflation ?
Does pay deflation count?
http://www.athensnews.gr/portal/1/53994
They look ready to revolt, lol
That picture in Athens News is of the guys who have a job.... that's just a picture of how they perform it. Draw a line across Europe anywhere south of Paris and 3 hours for lunch is mandatory, followed by a little siesta.
Waha!
Make sure you wake me up for supper.
@ PR Guy.
After reading your post the word Ignoramus comes to mind. It means "An ignorant or stupid person".
That's you that is.
"The eurozone crisis has sown divisions in the European family, and Greece in particular has often been singled out for criticism. Has Greece been living beyond its means? Are Greeks lazy? On this second point, the statistics tell a surprising story."
http://www.bbc.co.uk/news/magazine-17155304
Mose knows:
If you only knew all the dealing
That goes on in back of the store.
If you only knew how that one that's
Got a lot can't wait to get more.
I wouldn't want to cramp your style
But if you want to make it all worthwhile.
You have to have your own breakthrough.
If you only knew.
G
Yeah everyone I talk to thinks that all is saved... LOL
Has anyone here read Michael Lewis's book Boomerang? Chapter 2 deals with Greece. It is a shocking chapter. All the defenders of poor old helpless Greece "the victim" will get an education. Highly recommended. It destroys any myths that the Euro is sustainable. The whole thing has to collapse at some point. The only question is when.
yeeesss ... read it! nice bed time story. but prefere crisis economics by roubini
agree with you ... sooner or later collapse will happen but ... there are so many people out there not understanding what's going on. becasue they don't even try! they just the f*** don't care! and the ones trying to figure out how things work in this exiting system get lies directly into their face ... and i guess as long as there's no awareness on mainstreet, things won't change!
True, some people do not want to educate themselves on this. Agreed, sometimes it can be hard to understand, boring lecture. Watching memebase is more fun!
What will happen to those poor people who havent got any value left?
"the risks of turning away from Greece now are incalculable" -> she meant inquantifiable with monetary instruments (OSHI- she just #DIV/0d).
after an earlier reconstruction has owned up to a €1.3 billion hole in its balance sheet as a result
so nice article thanks for this...
jogos online