I sold out 70% of my core yesterday. I purchased back 15% already. See how the day goes but I do see another 3 weeks of heightened volatility. Today is a gift thank God for the CNBC Cheerleaders. Like all was solved in a day. Count on Spain's yeild going higher. When the Bond Vigilantes smell blood they do not say oh good enough. They will bleed it dry. This is their first chance to pull profits in the trillions and destroy a Country. Greece was the proxy. Now it is the operation.
Draghi can talk all he wants. Talk, talk, talk, I am counting on it.
I wanted to end this conversation because I know everyone hates long threads.
You are right. They were paid .20 on the dollar of the original loan. The other .80 cents is still owed as well as the interest on that .80. It was not erased hehehe.
They lent them more money so that they can keep paying the interest on the old loan plus the interest on the new loan! No one lost any money at all.
When this comes to a head again that will be the solution for the next bail out as well. Forver and ever and ever.
There is a moment theoretically in the future where more than 70% of people understand this mechanism and do not stand for it any longer. That is doubtful.
The loans will eventually get paid by Greece through inflation. It will be paid by all the Citizens of Greece with out them knowing.
The economy will pick back up, interest rates will be atrocious, gasoline will be outrageous, dinner will cost $200.00 for a Big Mac so to speak. Through all this inflation the citizens will be taxed more (as a result of increased pricing) and uknowingly provide the funds to repay the loans.
F@#*&ing genius! You must read that book. You really will fall over. I do not exaggerate.
And who r these people, since you know, who are the owners of these banks and never lost $$$ in their banks even when they traded to 1$.
just give me 5 names! Since you know.
``What it really meant is that the persons who lent the capital are still owed the original capital including the interest on that capital but since Greece acknowledged its obligation to repay them eventually, then they will lend them more money to do so.``
You are a delusional bag of wind! Bondholders were given .20 on the $ and a set rate of interest. And it was a take it or get nothing!
You need some meds. seriously.
Again the losses are a marketing strategy for the newspapers and the public.
Money WAS lost but not to any founding members of any of the lending institutions.
If they printed the truth, which they did in a way to protect themselves, that Greece's default was a "Selective Default" and people actually understood what that meant, then the World would have been set ablaze.
What it really meant is that the persons who lent the capital are still owed the original capital including the interest on that capital but since Greece acknowledged its obligation to repay them eventually, then they will lend them more money to do so. To repay the interest on the old loans plus the interest on the new loans. The principal will NEVER be paid back but it is irrelevant because the majority of the lenders used their fiat money creation powers - it never existed. This game must continue indefinitely because the real money created is the Interest paid to the lenders.
By having an acknowledgement of the debt, it never has to be written down on the books as a loss as long as interest is being paid. I want nothing more in my life than to find some individuals to start a Banking Charter of our own. I do not want to do anything illegal EVER. Just keep it open for as long as possible! ;)
I guess you should tell the acountants that mark to market is really mark to model.
You are a bag of hot air. Stop trying to deflect the convers and just admit you were wrong on greek debt.
First wrong assumption is that there is a thing called Mark-to-Market. That is only for me and you.
Banks as of March 2009 I believe are now allowed to Mark-To-Model!! What a great switch that was. That's when I began being a cheerleader for markets in general.
In theory Citigroup, BAC and all the others across the World could say that according to their model as of March 10, 2009 when the market said they were down $100 Trillion, that in say 20 years their model said they would be plus $500 Trillion. So the accounting kept them afloat. What a great trick! I love it.
I do not see much downside to markets in general personally. I took a gamble that this could be our greatest attempt at a double on a tradable product over a short term. That's all.
You need to take a medication pill.
The EU banks are basically worthless and the mechanism that alows them to keep afloat is mark to market and LTRO.
The central banking system is a scam but not foolproof for the banks. And they are going to keep printing scam $$$.
There was much more than 5% of greek bonds held by hedgies and bond funds and insurance companies.
Banks going to zero and hedge funds going outta biz and pension funds can`t pay their pensioners due to greek quasi-default. And you say there was no losses.