Greece Calls Crisis Meeting As Debt Talks Stall !
- It appears the ISDA (which is controlled by the 5 largest US banks) will declare that Greece has not defaulted whatever the result of the current negotiations. This is despite the obvious: Greece will default and ask for haircuts of around 70%! It is all a SCAM !
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The Golden Truth
The big topic of discussion in the cyberworld today was an interview with Jim Sinclair, who discussed an imminent ruling by ISDA – the board of OTC derivatives rules and enforcement – which would pronounce that any massive haircut in value taken by Greek bondholders would not constitute an event of default. …
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The problem with ISDA is that it is governed by the same banks that stand to benefit the most from ISDA rule declarations … Since the banks control the rules and procedures of ISDA, if they determine that a Greek restructuring which requires a 50-70% haircut on the debt held by investors is not really a “default” event, so be it. The Greek bond investor will be coerced into receiving a new bond that will be in the range of 30-50% of the face value of the original bond, thereby getting hammered on its investment, and the big bank who got paid a handsome premium to underwrite default insurance on that paper will get to keep the money it was paid and it will not have to make obligatory restorative payments to the investor.
– - Greece Calls Crisis Meeting As Debt Talks Stall !
by Tyler Durden, http://www.zerohedge.com/
No sooner have the supposedly close (and yet so far away) Greek debt negotiations increased haircuts but added desperate incentives such as GDP Warrants, then The Guardian is reporting that Greek PM Papademos is calling crisis meetings with Greek political party leaders as tensions are clearly growing between Greeks and their EU overlords/partners.
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The ‘increasingly intransigent’ negotiating team sent by Brussels is demanding even more severe austerity measures before sanctioning the new bailout funds. The incredulity at the complete mis-communication and increasing bifurcation is nowhere more clear than the divergence between FinMin Venizelos saying “We are one step [away]. I would say it is a formality away from finalizing (the debt relief agreement),” and the disbelief by Greek MPs that ”
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The troika doesn’t appear to be willing to accept any concessions whatsoever on reducing the minimum wage and scrapping bonuses,” said the government aide. “No political party is willing to move either, saying wage cuts are a red line they are simply not going to cross. You tell me how this is going to be resolved. We have no idea and we’re very
worried.”
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… for more click here!
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