Marin Armstrong
As always, there is more to the story. We are also watching the collapse of the CDS market – those things that cost $700 billion to bailout. The NY Banks are wiggling out of paying off on sovereign debt issues on Greece. The clever issuers are reneging on the Greek CDS be saying a 50% haircut is not a DEFAULT and thus is not covered. What is now taking place is the CDS prices are collapsing for you cannot trust the banks that issued them. Yields are now rising even on Italy and a new phase of the Sovereign Debt Crisis seems to be unfolding.
Speaking to institutions that bought the CDS to protect their investments, the most likely result is you just have to sell and get out. Thus, yields on the sovereign debt are rising even in the face of ECB intervention that has failed in the case of Italy. The CDSs are collapsing and smart guys are selling them while they can. So do NOT watch the CDS prices as any indicator of what is really going on. The CDS gave false insurance relief, but now when people expected to cash in, the banks change the rules. And you think you can sue their ass in New York? Good luck !
Jon Corzine, who ran Goldman Sachs Group Inc from 1994 to 1999, has demonstrated when you do not have the political game rigged; merely working at GS does not mean you are smarter than the rest and immune to market swings. This is yet another example of how corrupt things are in New York. Name one scandal that the SEC or CFTC have EVER prevented? I can think of none. All of a sudden it now comes out that hundreds of millions of dollars are missing because the firm FAILED to segregate their own funds from those of their clients. You see, this is PRECISELY what was done to me by Republic National Bank; they used funds for their own benefit and NEVER entered any entries in the records to show they were tapping into the funds. How is it possible that the SEC and CFTC NEVER manage to ever find this stuff in the New York banks that they regulate? Are they being paid off? Are any funds in a NY bank really safe?
As always, there is more to the story. We are also watching the collapse of the CDS market – those things that cost $700 billion to bailout. The NY Banks are wiggling out of paying off on sovereign debt issues on Greece. The clever issuers are reneging on the Greek CDS be saying a 50% haircut is not a DEFAULT and thus is not covered. What is now taking place is the CDS prices are collapsing for you cannot trust the banks that issued them. Yields are now rising even on Italy and a new phase of the Sovereign Debt Crisis seems to be unfolding.
Speaking to institutions that bought the CDS to protect their investments, the most likely result is you just have to sell and get out. Thus, yields on the sovereign debt are rising even in the face of ECB intervention that has failed in the case of Italy. The CDSs are collapsing and smart guys are selling them while they can. So do NOT watch the CDS prices as any indicator of what is really going on. The CDS gave false insurance relief, but now when people expected to cash in, the banks change the rules. And you think you can sue their ass in New York? Good luck !
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