The OTHER 800 Pound Greek Gorilla in the Room

JimBowie1958

Old Fogey
Sep 25, 2011
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The Eight Hundred Pound Greek Gorilla Enters The Room | ZeroHedge

Allow me to now present to you the “OTHER” Greek debt that is outstanding and will have to be accounted for as the country defaults. Detailed below are some of the “OTHER” sovereign obligations of the Greek government which have now been submitted to the ISDA and I list some of them below. You will note that there are bank bonds, Hellenic Railway bonds, Urban Transportation bonds et al that are guaranteed by Greece. You will also note that there are bonds tied to Inflation, Floating Rate Notes, Asset-Backed securities and a whole mélange of other structured products with a Greek sovereign guarantee.

What we all thought was fact is now clearly fiction and default will now bring “Acceleration” one could reasonably bet in all kinds of these securitizations and in all kinds of currencies. This could come from the ratings agencies placing Greece in “Default” or it could come from the CDS contracts being triggered depending upon each indenture and you will also note that a great many of these off balance sheet securitizations are governed by English Law and not Greek Law.

You may also wish to consider the fallout to the banking system as the lead managers of all of these deals could find themselves behind the eight ball as various clauses trigger and as the holders of these securitizations line up at the judicial bench [ZH note: there is a reason why Allen & Overy is getting paid $1500 an hour to indemnify ISDA with a plethora of exculpation clauses - they know what is coming] The ISDN numbers are on all of these securities and the lead managers may be found on Bloomberg or other sources as well as the holders of the debt. The curtain just lifted and the show is about to get way too interesting!

With the Greek default triggering CDS default events the first dominoe is tipping over with the Spanish Dominoe just behind it, then Italy, France, the UK, Germany, etc.

Anyone doubt that an EU default of such proportions wont pull our economy down now also?

Anyone feel outrage that the Federal Reserve allowed JP Morgan and BoA to use its FDIC accounts to backstop their losses to the tune of $154 TRILLION?
 

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