andreasnewyorkcity

Posts Tagged ‘Selective default: Greece’

Crisis of Confidence

In Belgian, Capital Shortfall, Cataclysm, Cyprus, Cyprus Investment Promotion Agency (CIPA), Cyprus Securities and Exchange Commission (CySEC), default, Economic Institutions, Environment, European Union, Financing Reconstruction, FX, Global Economics, Hedge Fund, ICE Brent Crude oil, IKOS Financial, latin america, macroeconomic factors, MF Global, Multibillion, Nuclear, philanthropy, price volatility in energy, Proprietary, Regulatory demands, selective default, spillover effect, Turbulent Markets on November 3, 2011 at 3:59 pm

At this point it really doesn’t matter which way the crisis in Greece goes. The worlds confidence has fallen as bond markets have shown more alarm and the GIIPS have been forced a bailout. Government debt situations and the banking industry and heavily linked GLOBALLY, and more is likely to come (MF GLOBAL).
The fall in confidence has led to a convincing bailout but weaknesses in the Eurozone will still remain. Money is already fleeing the Eurozone, the dollar only an alternative. The Swiss Franc and the Yen are no-longer safe-havens because their central banks have intervened to artificially weaken those currencies.
Today the U.S. dollar is the only really liquid place for cash to go. Greece can get a bailout but she will weaken tomorrow.
The EU has no choice but to leave Greece bankrupt and in chaos. Modern Greece has not been much of a democracy in the last 60 years. Confidence is down. When they re-print the Drachma to pay bills, hyper inflation will be terrible, “contagion” is worse.

20111103-120247.jpg

Advertisements

“This is a question of whether we remain in the euro zone. This is very clear. It’s clear to everyone” – Papandreou

In Belgian, Capital Shortfall, Cataclysm, Culture, default, Economic Institutions, Environment, European Union, Financing Reconstruction, FX, Global Economics, latin america, macroeconomic factors, MF Global, Multibillion, Nuclear, philanthropy, price volatility in energy, Regulatory demands, selective default, spillover effect, Turbulent Markets on November 3, 2011 at 3:44 am

Ok, here is the itinerary: The ECB is meeting on November 3rd. The G20 is meeting on November 3-4, The Papandreou is attending on the 2nd day. A Eurogroup meeting will follow on November 7th, followed by an EU Ecofin meeting on November 8.
The Troika was meant to disburse the sixth tranche of the first program in the first or second week of November, as Papandreou returns from G20 weaker we may not see this funding pass.

20111103-000625.jpg

It’s official in 2041 Greece will be underwater, right alongside Atlantis.

In default, European Union, Financing Reconstruction, Global Economics, macroeconomic factors, Multibillion, price volatility in energy, selective default, spillover effect on July 24, 2011 at 2:33 am

Its official greece is in selective default. If you’re a holder of Greek bonds right now, (sucks to be u) maturities will be extended, but you have three choices.
One: You can do nothing, and hope that Greece pays you in full and on time.
two: Extend your maturities out to 30 years, and accept coupon of 4.5% in return.
Three: You can extend your maturities out to 30 years, take a 20% cut, and get a higher coupon of 6.42%. & the principal is guaranteed with zero-coupon collateral.
Four: You can extend your maturities out to 15 years, take a 20% cut, get 5.9%.

20110723-103332.jpg

%d bloggers like this: