SI
SI
discoversearch

 Strategies & Market Trends | The Financial Collapse of 2001 and Beyond


Previous 10 | Next 10 
To: elmatador who wrote (87574)2/28/2012 3:42:11 PM
From: ggersh
   of 107389
 
It always ends up as the transfer mechanism.
Inflation through markets helps the have's.


But Brazilian hyperinflation was a tax on the poor. Simple transfer of money from poor to government and from poor to the rich.

Share Recommend | Keep | Reply | Mark as Last Read

To: average joe who wrote (87566)2/28/2012 5:17:27 PM
From: Maurice Winn
1 Recommendation   of 107389
 
Like carving moais out of the rock on Easter Island, digging gold out of the dirt in the Yukon is a good way to consume the spare young males of otherwise little value.

Perhaps gold has got a good function after all - keeps lots of young males off the streets.

Mqurice

Share Recommend | Keep | Reply | Mark as Last Read | Read Replies (1)

To: carranza2 who wrote (87568)2/28/2012 5:24:49 PM
From: Maurice Winn
1 Recommendation   of 107389
 
Quite right C2. Not only did I not dispose of it during the last big correction, I bought a dirty great load of the stuff [in the form of GLD]. <

Gold is volatile, but persistence and a steely will to not dispose of it during corrections will serve everyone well.
>

It was a lot of fun to buy so much gold and I hope to do it again some day. Since so many people want so much of it, I'm planning on selling them tons of the stuff too.

Gold is a bit above the 31 Dec 2012 sooth already. With the Dow heading for the 16,000 level, gold on hold will be the order of the day.

Mqurice

Share Recommend | Keep | Reply | Mark as Last Read | Read Replies (1)


To: Maurice Winn who wrote (87579)2/28/2012 5:41:05 PM
From: average joe
1 Recommendation   of 107389
 
It keeps all kinds of loafers and ne'er do wells actively engaged in pursuing a fantasy. However to qualify that I do know a few people who have become wealthy beyond their wildest imaginings doing this and similar treasure hunting.

youtube.com

The most interesting fact about the Yukon is more money went there looking for gold than was ever extracted from the cold creeks of Dawson City.

Robert Service more than made up for the bad balance sheet with his poetry.

Good-Bye, Little Cabin

O dear little cabin, I’ve loved you so long,
And now I must bid you good-bye!
I’ve filled you with laughter, I’ve thrilled you with song,
And sometimes I’ve wished I could cry.
Your walls they have witnessed a weariful fight,
And rung to a won Waterloo:
But oh, in my triumph I’m dreary to-night —
Good-bye, little cabin, to you!

Your roof is bewhiskered, your floor is a-slant,
Your walls seem to sag and to swing;
I’m trying to find just your faults, but I can’t —
You poor, tired, heart-broken old thing!
I’ve seen when you’ve been the best friend that I had,
Your light like a gem on the snow;
You’re sort of a part of me — Gee! but I’m sad;
I hate, little cabin, to go.

Below your cracked window red raspberries climb;
A hornet’s nest hangs from a beam;
Your rafters are scribbled with adage and rhyme,
And dimmed with tobacco and dream.
“Each day has its laugh”, and “Don’t worry, just work”,.
Such mottoes reproachfully shine.
Old calendars dangle — what memories lurk
About you, dear cabin of mine!

I hear the world-call and the clang of the fight;
I hear the hoarse cry of my kind;
Yet well do I know, as I quit you to-night,
It’s Youth that I’m leaving behind.
And often I’ll think of you, empty and black,
Moose antlers nailed over your door:
Oh, if I should perish my ghost will come back
To dwell in you, cabin, once more!

How cold, still and lonely, how weary you seem!
A last wistful look and I’ll go.
Oh, will you remember the lad with his dream!
The lad that you comforted so.
The shadows enfold you, it’s drawing to-night;
The evening star needles the sky:
And huh! but it’s stinging and stabbing my sight —
God bless you, old cabin, good-bye!

Share Recommend | Keep | Reply | Mark as Last Read

To: carranza2 who wrote (87407)2/28/2012 5:59:28 PM
From: Brian Sullivan
   of 107389
 
By all that is right and fair a CDS on a Greek Bond should have to pay out in this case of a 53.5% haircut.
Whomever was writing this insurance should have to pay out. What I'm not sure about is why the Euro's are trying so hard to stop this payout.



Swaps Body to Review Greece's Debt Revamp

By KATY BURNE

A special committee of the International Swaps and Derivatives Association has agreed to review recent developments in Greece's debt restructuring as a potential "credit event" that might trigger $3.2 billion of credit-default swaps on Greece for payouts.

The move may result in the country being officially declared in breach of its obligations to bondholders somewhat sooner than expected—even though Greece hasn't failed to honor payments and its restructuring deal with private creditors isn't complete.

ISDA said in a statement Tuesday that, as secretary to the so-called Determinations Committee that decides such matters for the CDS market, the committee will hold a meeting at Thursday to determine whether to require payers of CDS protection on Greek sovereign bonds to compensate buyers.

An anonymous party asked the committee to consider whether moves that could force private investors to forgive 53.5% of the face value of Greek debt, while the European Central Bank got a better deal, constitutes mandatory subordination that should allow holders of CDS to collect compensation.

The ECB and national central banks "benefited from a change in the priority of payments as a result of [Greece] exclusively offering them the ability to exchange out of their eligible instruments prior to the [private creditor] exchange and [expected] implementation of" the collective-action clauses, the request read.

Under the 2003 Credit Derivatives definitions published by ISDA, a change in the payment priority ranking of any obligation, causing its subordination, is one of the events in restructuring that can trigger CDS contracts for payouts—as long as it results from a deterioration in credit-worthiness.

In the event CDS contracts are triggered for payouts, $3.2 billion is the maximum amount that could change hands between sellers and buyers. If CDS contracts are triggered, buyers receive the face value of their debt, less the recovery value assigned to the affected bonds.

The decision makers' identities and their credentials are a closely guarded secret of the firms those individuals represent and of ISDA, a trade body for swaps that convenes a 15-member committee every time such a determination is requested of it.

ISDA's Determinations Committee for Europe comprises 10 voting dealer banks and five major investment firms named by ISDA. A supermajority of 12 must agree for a decision to be binding on CDS contract held by parties that have signed up to be bound by ISDA protocols.

The dealer firms constitute some of the largest investment banks in the world, and one committee member represents each. They are Bank of America Corp.'s Bank of America Merrill Lynch, Barclays PLC's Barclays Capital, BNP Paribas, Credit Suisse Group AG, Deutsche Bank AG, Goldman Sachs Group Inc., J.P. Morgan Chase & Co., Morgan Stanley, Société Générale SA and UBS AG. Meanwhile, the investment firms are similarly influential: BlueMountain Capital, Citadel, D.E. Shaw, Elliott Management Corp. and Pacific Investment Management Co.

online.wsj.com

Share Recommend | Keep | Reply | Mark as Last Read | Read Replies (3)

To: Brian Sullivan who wrote (87582)2/28/2012 6:09:56 PM
From: Brian Sullivan
1 Recommendation   of 107389
 
ISDA Determinations Committee

Who ARE these guys?

EMEA

Voting Dealers
Bank of America / Merrill Lynch
Barclays
BNP Paribas
Credit Suisse
Deutsche Bank
Goldman Sachs
JPMorgan Chase Bank, N.A.
Morgan Stanley
Société Générale
UBS

Consultative Dealers
Citibank
The Royal Bank of Scotland

Voting Non-dealers
BlueMountain Capital (Second Term Non-dealer)
Citadel LLC(First Term Non-dealer)
D.E. Shaw Group (First Term Non-dealer)
Elliott Management Corporation (Third Term Non-dealer)
Pacific Investment Management Co., LLC (Second Term Non-dealer)



Does anyone know how to pronounce the word for, "Conflict of Interest," in European? Is it Ice-Dah, Iss-Dah, or maybe Iss-Day?




Share Recommend | Keep | Reply | Mark as Last Read


To: Brian Sullivan who wrote (87582)2/28/2012 7:33:35 PM
From: carranza2
   of 107389
 
The fix at the ISDA has been in for a very long time. No credit event will be found, I'll wager.

Why? Bank- busting liabilities.

It wouldn't surprise me if some dam fool bankster of Corzine's ilk had underwritten all kinds of synthetic stuff, insuring even the swaps themselves. With the abundant liquidity presently available, it is likely that some crazy risks were taken that don't net out at all.

We'll see.

Share Recommend | Keep | Reply | Mark as Last Read | Read Replies (3)

To: carranza2 who wrote (87584)2/28/2012 7:38:01 PM
From: Brian Sullivan
   of 107389
 
Who in their right mind will every pay a dime for another sovereign CDS if they get nada from this Greek deal.
Its like buying insurance that will never pay out.

You saw the list of "voting members" of the ISDA

Voting Dealers
Bank of America / Merrill Lynch
Barclays
BNP Paribas
Credit Suisse
Deutsche Bank
Goldman Sachs
JPMorgan Chase Bank, N.A.
Morgan Stanley
Société Générale
UBS

It the same group of banks that are writing the CDS insurance.
I would sell all of the above names.

Share Recommend | Keep | Reply | Mark as Last Read | Read Replies (4)

To: Brian Sullivan who wrote (87582)2/28/2012 7:40:07 PM
From: Paxb2u
   of 107389
 
They have undoubtedly sold much more in face value insurance than the bonds are worth. So what do you do. Redefine the word "is". In this case the word default. Depending upon the amount of total insurance they sold, paying it could jeopardize the solvency of some banks---jmo--Peace

Share Recommend | Keep | Reply | Mark as Last Read | Read Replies (1)


To: Brian Sullivan who wrote (87585)2/28/2012 7:42:36 PM
From: Paxb2u
   of 107389
 
I don't know. Who bought GM bonds ?

Share Recommend | Keep | Reply | Mark as Last Read
Previous 10 | Next 10 

Copyright © 1995-2014 Knight Sac Media. All rights reserved.Stock quotes are delayed at least 15 minutes - See Terms of Use.