LOL, I guess I’m still misinterpreting something b/c I cannot get a different meaning from the definition, inverse meaning opposite:, “XIV seeks to replicate the inverse of the daily performance of the S&P VIX Short Term Futures index.”
The VIX has been low and dropped almost 14% today, indicating a lot of call buying and optimism. So why did XIV go up as it is supposed to be the inverse of the S&P, which also went up today?
Why buy this now? Doesn’t the drop today in VXX and VIX reflect a lot of call buying and too much optimism? When sentiment reaches one extreme or the other, the market typically reverses course.
International funds are lobbying the ECB and Brussels regarding protection from recapitalization of Greek banks. “This is because it is now not just visible, but almost a certain risk they will suffer dramatic dilution when implemented recapitalization.”
According to information from Capital.gr, international funds are determined to file legal claims directed against the ECB's supervisory body, the SSM/ESM arguing the ECB and SSM declared the banks solvent and shielded from the crisis.
“Maybe some kind of coco's or otherwise express finding in view of PRM. (I forget what PRM stands for – refers to investment by funds). There will be natural and other appointments and processes will thicken as they evolve and stress tests.”
For anyone still holding EGFEY, beware. From a comment by the NBG CEO, something may happen on Friday. It's reported the ASE is supposed to reopen Wed or Thurs.
Ha - Yahoo censored the word for urinating! They better not turn on the TV when away from work at Yahoo.
Thanks for the reference. A poster wrote: “the article demonstrates, their current elected representatives would have serious difficulty organizing a #$%$ up in a brewery.”
Well at least if Syriza had had an organized Plan B to leave the Euro they might have had more success in negotiating. However, preparing a new currency probably would have taken more time than Tsipras had available – and Germany knew that too.
stating they were concerned about measures that may be taken to revitalize the Greek banking sector, e.g., good bank/bad bank. In the letter the creditor group said it was eager to explore private sector solutions for any recapitalization of NBG.
Fidelity, BlackRock and Carmignac Gestion are among the biggest holders of NBG's bonds totaling EUR750 million. IMO shareholders should likewise be concerned.
Attendees at a meeting during crisis talks reveal those actions were proposed by certain members of Syriza. However, according to the FT article, they were not too smart. They lacked knowledge of how the Eurozone financial system worked. The vaults held only enough cash to keep the gov running a few weeks, and it would take an estimated 6-8 months to prepare and launch a new currency.
Also, the ECB would declare the country’s banknotes counterfeit after the gov took over the mint. A central bank official said: “putting anyone who tried to buy something with them at risk of being arrested for forgery. The consequences would be disastrous. Greece would be isolated from the international financial system with its banks unable to function and its euros worthless.”
Political opponents are now asking for an explanation. Mr. Lafazanis, who was chief among those making the plans, has not responded.
“It was all a fantasy,” said a senior Greek banker. “The Left Platform’s dreams of free gas [5bn from Russia for prepayment of gas transit fees from the planned pipeline] and a Russian-backed drachma have crumbled away.” (quotes published by Kerin Hope and Tony Barber in Athens)
Greece’s remaining balance to the IMF is $26 billion after having repaid $48 bn ($38bn bailout in 2010 + $36bn in 2012 = $74 - $26) according to JDC. Figures previously released by JDC show that the IMF has made EUR2.5 billion profit out of its loans to Greece since 2010. However, after 1.6bn default in June, the IMF’s overall profit currently stands at EUR900 million. If Greece does repay the IMF in full, this will rise to EUR4.3 bn profit by 2024.
The IMF has been charging an effective interest rate of 3.6% on its loans to Greece. This is far more than the interest rate the institution needs to meet all its costs, currently around 0.9% Out of its lending to all countries in debt crisis between 2010 and 2014 the IMF has made a total profit of EUR8.4 bn.
Where did the August 10 date come from?
Last year the US voted against a new bankruptcy process for sovereign nations. The UN voted to support the measure, which would promote debt restructuring by excluding so-called “vulture funds” from the process. The vote was 124-11 in favor, with 41 abstentions. UK Prime Minister Gordon Brown told the UN that when distressed securities funds purchase debt at a reduced price, and make a profit from suing the debtor country to recover the full amount owed, the outcome is morally outrageous. The UK passed legislation in 2010 removing the ability of vulture funds to use UK courts to enforce contested debts
Previously in 2009, bipartisan legislation in the US Congress was introduced aimed to prevent distressed securities funds from profiting on defaulted sovereign debt by capping the amount of profit that a secondary creditor can win through litigation based on those debts. The IMF and World Bank also noted that distressed securities funds endanger the gains made by debt relief to poorest countries like Ghana. The Stop VULTURE Funds Act was introduced, but not passed, in the US. Jubilee USA Network supported the legislation citing the impact that vulture funds have on poor countries.
The petition states: the citizens of countries across Europe, call for: 1) A European conference to agree debt cancellation for Greece and other countries that need it;…2) An end to the enforcing of austerity policies that are causing injustice and poverty; 3) the creation of UN rules to deal with government debt crises promptly, fairly and with respect for human rights, and to signal to the banks and financiers that we won’t keep bailing them out for reckless lending.
Jubilee Debt Coalition (JDC), a non-profit financial reform organization, is active in several countries, including the USA. The name "Jubilee" is derived from the biblical Jubilee in Leviticus, a system of debt cancellation, land restoration and liberation from bondage embedded in a 50-year cycle (however conflicting biblical interpretations).
JDC primarily advocates for financial reforms that it argues will help impoverished communities and developing countries. Those reforms include rules governing "responsible lending and borrowing," halting corporate tax avoidance, particularly in the developing world, reforming international financial institutions like the IMF, creating an international bankruptcy system and advancing trade policies that promote the common good.
JDC has fought a long battle against vulture funds, where a company buys up debts or securities in a distressed environment, and then sues for the full amount 'owing'. JDC campaigned against lawsuits by a company called Donegal International, which sued Zambia in 2007. JDC was also in the news in January 2010 calling for the complete cancellation of Haiti's debts after a huge earthquake hit the country.
forcing the government to declare a state of emergency and evacuate people living near the blazes, which have caused power outages. About 200 people trapped by one fire on an island were plucked off a beach by rescue boats.
Defense Minister Panos said it was likely that at least some of the fires were the result of arson, and ordered the armed forces to patrol forests and woodlands across the country as a preventative measure.
The number and intensity of the blazes forced the government to ask for help from nearby countries, including — notably —Germany, Tomorrow France is sending two Canadair firefighting aircraft and a Beechcraft reconnaissance plane along with expert teams. Forest and brush fires are common during Greece's hot, dry summers.
Maybe the fires won’t “dampen” banking activities on Monday.
It’s reported the banks are offering to set up new accounts for deposits that will be exempt from withdrawal limits, the purpose being to increase the country’s liquidity.
“The deal does mean that banks will be recapitalized, which should give the financial system a much-needed boost. Valuable Greek assets will be transferred to an independent fund that will monetize the assets through privatizations and other means. The monetization of the assets will be one source to make the scheduled repayment of the new ESM loan and generate over the life of the new loan a targeted total of EUR 50bn of which EUR 25bn will be used for the repayment of recapitalization of banks…. In short, Greece's bank recapitalization is now tied to its ability to privatize a huge amount of state assets.” Source: businessinsider
It’s reported one positive development is that the ESM will advance 10 billion Euros in the form of bonds for banks and ELA will provide liquidity. Fairfax and other foreign shareholders will be invited to participate in capital increases AFTER completion of the investigations (stress tests), and after a deployment (sale of subsidiaries - voluntary retirement). Ha, Fairfax might be interested but I can't imagine Ross buying more. Funny Prem Watsa hasn't made any public statements. Of course, the prices of capital increases will be carried out at low prices - to be attractive - so private shareholders will suffer significant impairment of their shares. I believe banks will reopen soon with continued limits on deposit withdrawals for awhile. Ha - timing is crucial. Are you still trading NBG?
Deputy Prime Minister Dragasakis thanked the US for mediation and for understanding the need for an agreement. "We need to publicly thank the US government and Mr. Obama as without their help and insistence that the agreement should include the issue of debt [restructuring] maybe not have achieved," he said.
“According to the proposed framework agreement for financing from the ESM is recognition of the need for 10 to 25 billion euros for banks. Funds used to recapitalize banks will be repaid with the proceeds from the privatization program. At this point, however, it remains unknown whether the shares of the banks will be transferred to the new Privatization Fund. Recall that the Greek government now controls 35% to 68% of the four systemic banks.” By F. Mor.
Okay, my bad. I guess when a European country defaults to the FSF and IMF there is no recourse for the debt holders as there is with corporations and individuals who declare bankruptcy. Usually when a bank is nationalized it isn’t in a country that is defaulting to the FSF/IMF – it’s a private bank that is acquired by its gov or another bank for a certain amount of money. However, bankingnews.gr reported that the FSF and ECB would not allow nationalization if Greece remained in the Eurozone.
lumarousseff on EGFEY Yahoo MB previously posted “They already were nationalized several years ago [by the IMF]. Eurobank was privatized and Watsa/Ross and associates hold 67% position.”
If the Greek government did receive approval to re-nationalize from the European institutions, I believe the gov would have to pay the IMF to assume control, according to the following:
In 1962, the United Nations General Assembly adopted Resolution 1803, "Permanent Sovereignty over National Resources", which states that in the event of nationalization, the owner "shall be paid appropriate compensation in accordance with international law." The term "appropriate compensation" represents a compromise between the traditional views, taking into account the need of developing countries to pursue reform even without the ability to pay full compensation, and the Western concern for protection of private property. Of course In the US, the Fifth Amendment requires just compensation if “private” property is taken for public use.