EU Bailout

[GRG55]

Re: EU Bailout

A default is not a default when voluntary is actually voluntary.

If you agree to write your loss off, you don't go and collect insurance on it. Otherwise you're obviously not writing off your loss. So EU banks at the table got to negotiate a 50% write down because they also got to negotiate a bailout fund so they don't really have to write off their "voluntary" losses. Its good to be Too Big to Fail isn't it

As for the $25Trillion CDS market that was not invited to the table? Well they've just been told to eat cake. Now how that's going to go over is the TEOTWAWKI question isn't it. if the ISDA say voluntary is not a default, a $25Trillion market will be nullified in the minds of all those investors that disagree. If ISDA say it is a default, well hmm, I guess we get to see just how useful that EFSF really is.

The EU block heads should have spent less time arguing about how "I get mine" and more time looking into the effects of playing tough guy with a market that is much larger than the entirety of the EU.

Europe: Nice place to visit, wouldn't want to live there. But it was fun while it lasted.

Come now Fox...do you really believe that every bank that has material exposure to Greek debt was in the room and agreed to this so-called "voluntary" haircut?

Seems one of the key questions is whether the Euro banking organization representatives in the room [primarily the IIF] can actually get all their bank members to ratify what they agreed to in the all night meeting.

All night meetings that result in "agreement by exhaustion" are a classic tactic of labour negotiators. Think of the European "50% haircut bank agreement" as something quite similar. The union negotiators may have struck a deal, but the membership still has to vote. There's no assurance the banks themselves will see it the same way as the Bleary in Brussels Eurocrats saw it...

[don]

Re: EU Bailout

who's screwed?