Now that Greek Bonds are no longer allowed to be accepted as collateral there is going to be a lot of dumping and haircuts as a result of this default, now we will see how bad the losses are going to be for European banks and which ones will need rescuing.

Here is a nice flowchart of how things will proceed





http://www.bloomberg.com/news/2012-02-27/greece-cut-to-selective-default-by-s-p.html

Greece’s credit ratings were cut to “Selective Default” by Standard & Poor’s after it negotiated the biggest sovereign debt restructuring in history.

S&P dropped Greece’s rating from CC, two levels above default, after the government added clauses to its debt designed to mop up investors unwilling to take part in the exchange, the New York-based company said in a statement today.

The downgrade follows a reduction last week by Fitch Ratings to C, while Moody’s Investors Service has said it will cut the nation to its lowest rating. Greece published the formal offer document last week for its agreement to exchange bonds for new securities, with investors taking a haircut of 53.5 percent. The restructuring uses so-called collective action clauses to discourage holdouts, the use of which would trigger credit- default swap insurance contracts on the nation’s debt, according to the rules of the International Swaps & Derivatives Association.

“Everyone knew there was going to be some kind of swap,” said Ira Jersey, an interest-rate strategist at Credit Suisse Group AG in New York. “I suspect that it will be pretty much shrugged off and it’s in the market.”

 

-----signature-----

If only they'd gone on the Rhino Horn standards they'd have been saved

 

-----signature-----

Anything tangible would have been preferable than government printed paper, as the Greeks are learning now ( the hard way). But the sheep will cling desperately to the lie that government will fix things, something the Greks are now learning is not true.

 

-----signature-----

you cling to lies that government throws at you, or at least you troll that you cling to the lies that Ron Paul throws at you.


Ironic taint it.


Either way its funny. Keep on keepin on.

 

-----signature-----

Ahh the baby is butthurt becuase I turned his barb against him, you need to be changed now?


The Greek people are learning that their government sold them down the river, as all EU member governmenst will do as well becuase in the end it is about staying in power at all costs .. even if that means the citizens are the enemy ... if is a history that has repeated itself for centuries and as long as people believe that there should be government, it will keep repeating itself in the future

 

-----signature-----

There is going to be a revolution/civil war in Greece watch.

 

-----signature-----

Ahhh it will be like the 1930s all over again with Germany once again seen as the bad guy .. wasn;t the EU created so this would not happen again? Ahh the follies of government central planning .. very comical

 

-----signature-----

What barb?


You mentioned clinging to lies the government throws at you. I agree the government lies a whole lot. It is also quite accurate that you cling to the lies that government throws at you as you troll one of the longest running government lackies currently in the government.


Ironic taint it.

 

-----signature-----

Oh the liar now feigns ignorance .. so droll ... at least the Canadian lay-a-about has a bit more humor than you do.

 

-----signature-----

Nope, not feigning anything.


You appear to be caught now and deflecting. Did you need to talk about this. Lets discuss your feelings of supporting a government lacky and the irony of it.

 

-----signature-----