DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post

**makemoneyonli** · 03-09-2012, 07:47 PM

Of course it is a default. The issuers of the credit default swaps will default over it, so they try to say that it wasn't a default. Actually it doesn't matter what they do. If they don't agree that Greece's default was a default, the entire credit default market will collapse, from lack of trust. If they agree to it, it will collapse due to lack of liquidity. Possibly they can prop it up in the case of Greece, but with the following defaults of Ireland, Portugal, Spain, Italy, France, UK, Japan and the US, the CDS market will collapse prior to reaching any of the major countries, and in quick succession the entire derivative market will go POOF...

This is not the end of the beginning... IT IS THE BEGINNING OF THE END!

03-09-2012, 07:47 PM	#4
makemoneyonli Join Date Oct 2005 Posts 447 Senior Member	Of course it is a default. The issuers of the credit default swaps will default over it, so they try to say that it wasn't a default. Actually it doesn't matter what they do. If they don't agree that Greece's default was a default, the entire credit default market will collapse, from lack of trust. If they agree to it, it will collapse due to lack of liquidity. Possibly they can prop it up in the case of Greece, but with the following defaults of Ireland, Portugal, Spain, Italy, France, UK, Japan and the US, the CDS market will collapse prior to reaching any of the major countries, and in quick succession the entire derivative market will go POOF... This is not the end of the beginning... IT IS THE BEGINNING OF THE END!
	Quote