muses of the moment

March 1, 2012

ISDA: No Official Greek Default

Filed under: European Debt Implosion, Global Debt — totallygroovygirlfriday @ 2:45 pm

Not a surprise, but here is the official word. It’s a voluntary haircut, not a default.

Click here.

Guess what? 30%-50% of somebody’s money just went up on smoke. And if they hedged with insurance swaps based on a default, they just got screwed.

Remember, this is a blueprint for all the other PIIGS debt “defaults” coming in the future. If swaps will not cover the risk of a haircut, default, whatever you want to call it, investors will NOT invest in Greek bonds or other PIIGS debt. This move has just narrowed the sources for future European PIIGS debt to Big Banks (TBTF) that were excused from or granted loans to cover the “haircut”, the EIB, IMF, and ECB.

Let the fun begin!

Window Dressing

Filed under: Gold and Silver Investing, Precious metals — totallygroovygirlfriday @ 12:50 pm

Yesterday’s plunge in gold and silver has been called everything from window dressing to intervention. Clearly it is no accident that the last few days of the month, precious metals advance, but are slammed down on the last day of the month.

That end of month price influences many stats and trading logarithms. The only thing that officials can do in this global economic contraction is print money and try to manipulate the official stats. Everything else is out of their control. As we move farther down the road, their control on even these things will come under pressure.

Click here for zerohedge’s thoughts on the window dressing.

Click here for an audio interview yesterday by Jim Sinclair.

Side musing: for all panic yesterday and cliff drop in gold, it was stopped at $1700. That is a clear support price.

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