Greece

[cottonpicken]

Very interesting last hour.

Rumors swirling that the isda just announced a credit
event and cds's will be triggered.Bloomberg and
business insider are saying this but isda spokesmen
are saying not.

This could get interesting.

Like always zero hedge is on top of it.

[cottonpicken]

It is an event!

Home nobody here is invested in financials.

[agstar77]

Out of banks in 2008, not going back.

[BTO_farmall]

Grease has finally went Tits Up..............

[errolanderson]

wonder how many American banks are caught
up in this?

[rhoff]

CDS's appear to actually work as insurance
now.this will go along way to building confidence
in swaps. Other than that it will be a non event
and the market will start looking for its next wall of
worry.

[wd9]

Can anyone please explain in small words exactly what this means?

[Hopperbin]

My dad made a killing on banks after the O8. His puchase is raking in plus 10 percent per year.

[Hopperbin]

That is dividend money not counting share increase.

[cottonpicken]

Cds-credit default swaps-are like insurance contracts
on bonds,if the bond goes into default,the cds pays
you,like a hedge,usually bought for pennies on the
dollar.

LOTS of good analysts never believed they would
actually start to pay on sovereign debt because the
market is so monstrously huge it would bankrupt the
banks and institutions that sold them in the first
place.

This was what was holding the global bond market
together,people buying bonds and feeling safe that
the cds market would be there to backstop a loss.

At this point everything is still up in the air,they are
saying that there will be only a 3.5 billion dollar
payout-which is a complete lie,and that they are
having some sort of auction on these contracts?i
haven't figured this out yet.Everyone still has lots of
questions as to how this plays out.

Kyle bass alone may have made 10's of billions of
dollars,at one point in time one of these contracts
would have payed you something like 7000%.

A few weeks ago i was trying to get cds's on japan but
figured i wouldn't bother because there would never
be a pay out.

there is a scenario floating around that many trillions
will have to be pumped into around 8 of the largest
institutions,which will decimate currency markets and
propel the commodities complex into the
stratosphere .

[wd9]

Thx for that explanation Cotton.

[rhoff]

It would have been pretty brutal in my mind if
they didn't call this a credit event. It would be like
your house burning down and the insurance
company being able to say "it's only 70% burnt so
it's not considered a house fire"
From what I've heard there was a relatively small
percentage of Greek debt that had CDS's written
against it though.

[BTO_farmall]

It Means, It Means......Yer ****ed, About as simple as I can put it to Ya...........

[VK58]

Cotton, what are your thoughts on this ruling in regards to other sovereign debt issues. Do you see the bond vigilantes moving on to the next country. If the cds make them whole again why would they not hasten the event forward before they are given a haircut as well.Looks like to me that there will be a lot of unpopular politicians going foward as austerity becomes the new political buzzword.
rhoff,I read the same amount as you, to me that looks like bs, probably need a few more zeros. Really 3.2 billion probably paid that in per diems to the lawyers and polticians to get to this point JMO

[parsley]

http://m.spiegel.de/international/europe/a-
820302.html