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**FailiaFelay** · 02-28-2012, 08:29 PM

February 28, 2012 - 5:46am

At long last: the ratings agency Standard & Poor’s has deemed Greece to be in “selective default”. The European Central Bank has temporarily suspended the use of Greek bonds as collateral. However, stocks have been moving higher in trading this morning following the vote in the German Bundestag yesterday to authorise the new 130 billion-euro Greek bailout deal agreed by finance ministers last week. The markets have after all had months to come to terms with the idea of Greek bankruptcy.

Moreover, as Jim Sinclair points out at JSMineSet.com: “Only the International Swaps and Derivative Association opines on what is a default as it applies to credit default swaps. S&P carries no power over the performance (or lack thereof) of CDSs.” It is this uncertainty about whether CDS written on Greek debt can be honoured that still has the serious potential to spook investors.

http://www.silverseek.com/article/tu...-three-months’

02-28-2012, 08:29 PM	#4
FailiaFelay Join Date Oct 2005 Posts 466 Senior Member	February 28, 2012 - 5:46am At long last: the ratings agency Standard & Poor’s has deemed Greece to be in “selective default”. The European Central Bank has temporarily suspended the use of Greek bonds as collateral. However, stocks have been moving higher in trading this morning following the vote in the German Bundestag yesterday to authorise the new 130 billion-euro Greek bailout deal agreed by finance ministers last week. The markets have after all had months to come to terms with the idea of Greek bankruptcy. Moreover, as Jim Sinclair points out at JSMineSet.com: “Only the International Swaps and Derivative Association opines on what is a default as it applies to credit default swaps. S&P carries no power over the performance (or lack thereof) of CDSs.” It is this uncertainty about whether CDS written on Greek debt can be honoured that still has the serious potential to spook investors. http://www.silverseek.com/article/tu...-three-months’
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