IIF’s Doomsday Memorandum Revealed: Disorderly Greek Default To Cost Over €1 Trillion!

• Will Greece be the domino that causes the fall of the Eurozone? Who knows? But even if Greece is not the one, we have many candidates in the PIIGS. It is a question of when the Illuminists will pull the plug and trigger the global economic, financial and monetary collapse. They are already lining up the military hardware to start their Satanic World War 3 after the global calamity. All of this are engineered, contrived, planned … and not an accident. Don’t let the Illuminist MSM tell you that the war hoohah over Iran is about nuclear bombs. This is BS. It is about global monetary hegemony, world conquest, setting the stage for the coming Luciferian New World Order, World Government, One World Currency … the coming Anti-Christ !
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  IIF’s Doomsday Memorandum Revealed: Disorderly Greek Default To Cost Over €1 Trillion! 
  by Tyler Durden, http://www.zerohedge.com/ 
  While everyone was busy ruminating on how little impact a Greek default would have on the global economy, the IIF – the syndicate of banks dedicated to the perpetuation of the status quo – was busy doing precisely the opposite. In a Confidential Staff Note that was making the rounds in the past 2 weeks titled “Implications of a Disorderly Greek Default and Euro Exit” the IIF was doing its best Hank Paulson imitation in an attempt to scare the Bejeezus out of potential hold outs everywhere, by “quantifying” the impact form a Greek failure. The end result: “It is difficult to add all these contingent liabilities up with any degree of precision, although it is hard to see how they would not exceed €1 trillion.”
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  In other words, hold out at your own peril. Of course, what the IIF does not understand, is that for hedge funds it is precisely this kind of systemic nuisance value that makes holding out that much more valuable, as they understand all too well that they have all the cards on the table. And while a Greek default could be delayed even if full PSI was not attained by Thursday, it would simply make paying off the holdouts the cheapest cost strategy for the IIF, for Europe and for the world’s banks. Unless of course, the IIF is bluffing, in which case the memorandum is not worth its weight in 2020 US Treasurys. Some highlights from the report:
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  First, “quantifying” the fallout from a disorderly default, based on the one thing that everyone always forgets (as was the case in Bank of America)- contingent liabilities:
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  – Direct losses on Greek debt holdings (€73 billion) that would probably result from a generalized default on Greek debt (owed to both private and public sector creditors);
  – Sizeable potential losses by the ECB: we estimate that ECB exposure to Greece (€177 billion) is over 200% of the ECB’s capital base;
  – The likely need to provide substantial additional support to both Portugal and Ireland (government and well as banks) to convince market participants that these countries were indeed fully insulated from Greece (possibly a combined €380 billion over a 5 year horizon);
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  … for more click here!

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