Have we done the Greek default which is not a default may actually be a default

[BrilloPad]

Quite a good article here - Greek bond swap deal rests on knife-edge - FT.com

Greece must get 75 per cent of holders to participate to avoid forcing the deal on holdouts through so-called “collective action clauses” which were inserted retroactively into Greek bonds by the government last week. If less than 66 per cent participate, even the CACs would become invalid, scuppering the entire deal.

A government official confirmed on Sunday that Greece plans to hold a general election on April 29 or May 6

[AtW]

Look at Iceland. Soon as they defaulted things got better after a couple of months. It will be the same with Greece.

No, it's not the same, in simple terms:

Iceland:
Exports: $5.3 billion (2011 est.)
Imports: $4.495 billion (2011 est.)

Greece:
Exports: $26.64 billion (2011 est.)
Imports: $65.79 billion (2011 est.)

Do you see the difference? If Greece's currency drops the value of imports they'll be able to afford would be even lower than they'd have to cut now to keep going.

[BrilloPad]

This stuff is starting to get way too complicated for me.

To those who understand these financial instrument thingies, I require simple answers to the following questions:

-Is the world going to end ?

-Will I still be able to buy feta cheese in a weeks time?

Would is not going to come to an end until Nibiru arrives - 6 months to go now.

Feta cheese will be still be available but cheaper.

HTH

[BrilloPad]

How exactly did you arrive to that conclusion (nevermind Germans bit)?

Look at Iceland. Soon as they defaulted things got better after a couple of months. It will be the same with Greece.

As for the Germand bit - the Euro has been run for the benefit of the Germans from day 1. It is a sort of fourth reich. Look at the way German exports benefit from the currency they buse being lower than it would be without the PIGS.

Luckily voters are sheep.

[CheeseSlice]

This stuff is starting to get way too complicated for me.

To those who understand these financial instrument thingies, I require simple answers to the following questions:

-Is the world going to end ?

-Will I still be able to buy feta cheese in a weeks time?

[AtW]

the sooner the default happens the sooner the Greek people will stop suffering austerity at the hands of the Germans.

How exactly did you arrive to that conclusion (nevermind Germans bit)?

[BrilloPad]

I still think this time the bailout will go through - the default will be later this year. But I hope I am wrong - the sooner the default happens the sooner the Greek people will stop suffering austerity at the hands of the Germans. Why the Greks put up with it is quite beyond me.

[AtW]

The CDS will pay out if the CACs are triggered. If they don't, the ISDA loses all credibility and CDS everywhere else become worthless (which would be very bad).

I think it would be good if CDS disappeared - some things are illegal to insure and business risk should be one of them. Basically investment is inherently risky and anybody who creates a scheme involving insurance of that kind should go straight to jail.

[doodab]

If they don't, the ISDA loses all credibility and CDS everywhere else become worthless (which would be very bad).

But amusing in it's own way.

[Freamon]

It's not a default for so-called CDS "insurance" as far as those banks who "insured" tulip quality debt for $$$ are concerned.

Lawyers are eagerly awaiting their hedge funds clients to instruct them.

HTH

The CDS will pay out if the CACs are triggered. If they don't, the ISDA loses all credibility and CDS everywhere else become worthless (which would be very bad).

[AtW]

It's not a default for so-called CDS "insurance" as far as those banks who "insured" tulip quality debt for $$$ are concerned.

Lawyers are eagerly awaiting their hedge funds clients to instruct them.

HTH

[scooterscot]

nothing to see here - move along

[Platypus]

Greek default looms as voluntary debt deal looks set to fail - Telegraph


You couldn't make this story up well you could but no one would believe you.

We did the Greek default which is not a default, but the may actually be a default is new !

[eek]

Greek default looms as voluntary debt deal looks set to fail - Telegraph

Authorities in Athens are ready to enforce the controversial collective action clauses, or CACs, to impose the restructuring deal on all bondholders as the number of voluntary agreements look set to fall short of the required amount.
Credit rating agencies have warned they will declare Athens to be in default if the CACs are triggered

You couldn't make this story up well you could but no one would believe you.