BREAKING NEWS: Greece Default Is Official; Insurance Payouts Triggered

reply to post by silent thunder


I bet it will be the US taxpayer and consumer that will end up losing out....
the too big to fails will get bailed out...
the taxpayers will foot the bill, either through taxation and the loss of services, or through inflation, or both...

we, the people, will be the only losers really....

This was expected and already talked about on a national financial news channel here in the US. Forcing compliance will help emerging market funds who will get some insurance money now. I believe that is on CDS or credit default swaps.

Overall it did not sound like any big deal because it is an orderly default, not a chaotic default that could have happened several months ago.

I believe the stock market or SP500 sold off a few points on Friday afternoon when it was announced that a default event was going to be declared. If ATS is in any way reflective of investors in general, the market could sell off a little bit more than 4 or 5 points on Monday. On the other hand, now that this is over with and the result is 3 billion dollars gets paid out, the world can move on to Spain, Italy etc. etc.

In case you can't tell, I'm not expecting much to result from this. Kind of like hearing it's supposed to rain sometime next week.

Originally posted by dawnstar
reply to post by Mike.Ockizard

 

it's my understanding that the ones who are were selling the credit default swaps or whatever they are called are the some ones on the committee that just declared that this was a credit default....was mildly surprised that they did!!
but well, the major holders I believe are those too big to fail banks in america that we taxpayers will be getting stuck with the bill to bail out....
so, my guess is, the too big to fail banks will need to be bailed out again so they can pay this, and since they have agreed to do it, they have the assurance of the US gov't and the fed that however much money they need to do it, well, it will be given to them, in the form of near 0 interest loans...of course!!!

"Proud to be American" is quickly being changed to "Depressed to be American"!!!

Thats my understanding. Another round of quantitative easing(QE) which is just a benign sounding term that really means - print more money backed by nothing - I see the bubble growing.

Greece did NOT default

Jesus what a misleading Thread

A little layman's terms...

So this is happening: Greece has technically, officially defaulted on its debt.

Now what?

The International Swaps and Derivatives Association, the trade group that oversees the market for credit-default swaps, essentially insurance policies against bond defaults, on Friday declared that Greece had undergone a "Restructuring Credit Event," which will trigger insurance-policy payments.

This is because Greece announced on Friday that it would force some of its private bondholders to accept a swap of old debt for far less valuable new debt, in an effort to cut its massive debt load by about 100 billion euros.

That Greece was declared in default should not exactly be shocking: It was widely accepted by most observers that sticking a gun to your creditors' heads and forcing them to accept less money in repayment would be considered a "default" by any other name.

Huffington Post Article

Independent IE Article

Originally posted by DarkSarcasm
reply to post by Mike.Ockizard

 

The debt may be trillions but the insurance payout is not. The payout due to the devaluing of their bonds is 3.2 b.

now that they are devalued i bet the banks will buy them back, thus cancelling out their loss. LOL

This actually isn't news as big as you're making it out to be.

This was expected in financial circles and agreements were made this week with several large international banks to sort this out and avoid the financial meltdown that would have happened were this to be true.

OP - are you willing to put your money where your mouth is? If you are, I suggest that you HEAVILY short sell stock as soon as the Asian markets open on Monday morning, follow it up with more short selling on the European and US markets.

Atlas is not going to shrug, but go for a forward pass.

This evening and the morning could be very interesting for Europe, as anticipated as this has been by the Markets, remember it was the UNINTENDED consiquences that caused the 2008 situation. Has this been contained as most hope, or is this the snowball finaly being pushed down the hill, we will see, for me i have NO IDEA and dont claim to, i think it is interesting however, i hope its vauge interest and not worst case senerio(which i doubt it will be).

It will all serve towards further empoverishment, which in turn will trigger an deflation (if you work for pennies to the dollar you have a deflation), which in turn will vastly increase the value of those who enriched themselves over the years.