Eugene Stiglitz: Greeks Have Already Defaulted ! ECB May Be Protecting The Bank’s Sellers of CDS !
- The big sellers of CDS (Credit Default Swaps ie. insurance protection against debtor default) are the big 5 Wall Street banks. Some say they hold as much as 97% of the world’s financial derivatives. It is these CDS (and other financial derivatives) which can bring down the global banking system. These financial derivatives are characterised by Warren Buffet as ‘financial weapons of mass destruction’. There are reportedly as much as US$700T of these fraudulent derivatives in the financial system ie. more than 10x the entire GDP of the world ! CIGA Christopher is correct in his assessment below!
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Eugene Stiglitz: Greeks Have Already Defaulted ! ECB May Be Protecting The Bank’s Sellers of CDS !
via Jim Sinclair’s www.JSMineset.com
Jim,
In an article provided by the French financial magazine La Tribune, Eugene Stiglitz, Nobel Memorial Prize in Economic Sciences (2001), suggests that the Greeks have already defaulted on certain payments and accuse the ECB of not being transparent about these events.
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Click here to read the article in French… (This article cannot be found in English)
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He also suggests that the ECB may be protecting the bank’s sellers of CDS and mention a possible conspiracy between the banks, the ECB and, what he called the “secret committee”, the ISDA. He concludes that, by definition, CDS on sovereign debts become worthless and questions who will buy new CDS on Portugal, Spain, Belgium and Italy.
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In my opinion, this mean a big loss of future revenue and source of profit for the main sellers of CDS (US banks) and, as there is no protection anymore, a complete stop of sovereign debt buying by the private sector (banks, hedge funds). I believe that is why today there is news that China won’t let Europe fail.
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China to Get ‘More Involved’ in Europe Rescue, Hold Euros…
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If you take out the private sector as potential buyer of PIGS sovereign bonds, what remains as the potential buyers are: China, ECB, IMF & FED
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In my opinion, they won’t be able to hide QE3 to the public for much longer!
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Best regards,
CIGA Christopher
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