Tuesday, January 31, 2012

Does it really matter where it starts?

Does it really matter where it starts?
Greek Isles, small towns in Michigan, or a big one in Rhode Island. Who is next?
Wind power & water power in Scandinavia sold forward to invest in SAFE, now defunct bonds.... so now everyone has a power shortage in those towns. Gee who helped them into such a great deal? Yes Guess WHO, not the rock band either.
Bottom line similarity for each ? We did a deal with one of the VAMP SQUID's tenacles for secured financing. Guess what ? They are all now securely in the Squids tenacles. In each case the deal had unintended consequences to the BORROWERS.

Lets review:
If these CDS products DON'T pay off, there will be NO further market for CDS products. If these CDS products pay off, the Banks will suffer. If these CDS products DONT pay off, their buyers will suffer.

When an event is so large, it cannot be insured against, witness the nuclear industry. No one can sue them nor can they get insurance. Think of it ?

IDSA has always avoided calling a Credit Event a default, I think their info is a smoke screen to beguile everyone.

MF GLOBAL went BK because they could not collect on the CDS. How many other entities will go BK when IDSA declares the Greek Settlement NOT DEFAULT?

THE SQUID is buying Gold Royalty Companies and gold stocks, HMMM ?

WHY Now ? DAVOS & GREEK Settlement are NOW.

There are many, many previous cases of foreign powers confiscating local assets until debt was repaid. In this case the EU is discussing sending “Financial Inspectors” in to make sure VAT is paid, and in the USA, citizen political control is terminated and replace by “FISCAL MGMT” firms. Hmm, how do you spell

Does your town have a deal with the SQUID or its relations ??
      Are the Inspectors coming to your town ?

My take on Jim Sinclair's information on the Derivatives Assn's decision

upcoming  this week on whether to declare a default on the part of GREECE.  If they declare a default the  5 largest US banks, who wrote 97% of the CDS's insuring this debt, will be openly insolvent.

If the Assn declares NO DEFAULT, those who attempted to insure their positions will be exposed.

what I got is this:  If ISDA declares that an xx% haircut is NOT a default, the 5 US Banks that issued the CDS's to debt holders will skip away from THIS haircut scott free FOR NOW.  Meanwhile the brokerages and others that have bought the GREEK Sovereign Debt and hedged their downside risk to create a lo-risk trade will now be exposed to bankruptcy and ruin for they will have NO insurance and no recourse.   TRANSLATED =  lotsa people gonna go belly up when / if ISDA declares NO DEFAULT.  Bank issuers of CDS on this deal, will have dodged the bullet and cheated death this time.
Remember when MF GLOBAL flamed out, like a month before the markets cratered, as selling commenced.....hmm
Jim said this NO DEFAULT POSITION would be Bad for the Dollar, Good for Equities and Good for Gold, and I would add, once it runs its course of bankrupting a whole bunch of people BECAUSE, that admission of a HAIRCUT will mean destruction of liquidity and debt based money, and to that extent and MORE some form of QE will be used to replace that and patch the obvious holes in this ships hull.  So what I'd possibly see is another Crater leading up to a fallout like Early October, and once the bankruptcy silliness is over, then a huge rally like from Oct to NOW.
Bottom line:  Protect ALL your capital for there is an ill wind blowing right now and mischief is afoot.........