Greek Bond Yields Explode as 1 year moves 100 bps to over 752% in One Day - Page 2

Plainsman · #11 02-22-2012, 09:15 AM

Well heck they sound like a great investment! I am sure that someones retirment is buying into them!

I dont watch tv but surely they are touting them as the'bedrock of financial security' buy Greek bonds today!

TomNTam · #12 02-22-2012, 09:18 AM

It cannot trigger a default for the purpose of credit derivatives, as that would put GS and JPMorgan on the hook to payout, and therefore, become insolvent. Do you really see that happening? To me, that just seems impossible.

rondaben · #13 02-22-2012, 09:34 AM

Quote:

Originally Posted by TomNTam

It cannot trigger a default for the purpose of credit derivatives, as that would put GS and JPMorgan on the hook to payout, and therefore, become insolvent. Do you really see that happening? To me, that just seems impossible.

Kind of like the big 5 are on the hook for robosigning?

Of course, they write down principal, get to take that as a writeoff, then are reimbursed through HAMP and get to count that amount towards the 25 billion they owe. If you ask me, it seems like they get their money, a tax writeoff and immunity from class actions and the only people that pay are the taxpayers.

The exact same thing will happen here.

bw · #14 02-22-2012, 09:34 AM

Quote:

Originally Posted by rondaben

that will trigger a default for the purposes of credit derivatives.

The ISDA can keep its hands over its eyes longer than anyone ever thought possible. We don't yet know what it will take to make them see.

TomNTam · #15 02-22-2012, 10:29 AM

The amounts I have seen, in these derivatives, have been in the trillions, not billions, so the song and dance is going to be huge. I guess they can do anything they want, sense it is all make believe money, made up on someones' computer screen, and govts. are owned, no longer held under law, for or by the people.

Chaplain Chuck · #16 02-22-2012, 11:06 AM

Quote:

Originally Posted by rondaben

Of course, they write down principal, get to take that as a writeoff, then are reimbursed through HAMP and get to count that amount towards the 25 billion they owe. If you ask me, it seems like they get their money, a tax writeoff and immunity from class actions and the only people that pay are the taxpayers.

The exact same thing will happen here.

Indeed. I can see this happening if Obama is elected to another term. He has given away our future and our children's future. Now he will work on the next 5 generations futures as he lines the pockets of his friends (as well as lining his own nest)