Not for love of money, but of Humanity. "Greater is he who works for the good of all, then he who works for the good of himself only" ~ Matthew 25:40: "The King will reply, 'I tell you the truth, whatever you did for one of the least of these brothers of mine, you did for me.'"- (NIV). I live in Singapore where the Emperor must not be disturbed.

Tuesday, January 3, 2012

ECB/IMF announcement of Greek bondholders haircut- what is holding them back?

Greek bond holders have in recent times, become steadily more prepared for for a big haircut in the value of their bonds, what's stopping the ECB/IMF from declaring one?

Pict: Screen grab CNBC 6Sept2011: Greek bond yields [YouTube] (ps: 2Y@ EUR 52.120 means Greek bonds with 2 yrs to maturity, EUR100 in face value are being traded at EUR 52.120 a piece):

The latest prices I'm told are at: Sovereign debt question on 'yields'

IMG from Credit default swap - Wikipedia, the free encyclopedia :

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Are the leaders of IMF/ECB corrupt? Do they like to personally buy cheap Greek bonds (sovereigns) only to sell them after falsely stimulating the market with some farcical announcement that they might actually be able to give Greece the ultimate bailout, and then soonest turn around saying opps,sorry, problem, we miscalculated, so no bailout funds now, ... we need more time to raise them etc etc before the starting the anti-climatic cycle all over again again, just to milk investors of all their money?

Please lah, in lieu of either the printing of money in their own currency or increased taxation, which country on Earth is going to bail Greece out I ask? Ps: Zimbabwe is out of the running becos even their ZIM $100Trillion currency note is now toilet paper/ at best compost/fertilizer:

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A haircut is due, if not now then when? What are they waiting for? The bond holders have since discovered their folly, profligacy costs money and the market shows that they should pay. No one who uses the printing presses so freely and liberally should get scot free, not them nor their followers- the bond holders are waiting to repent, so please hurry.
Growing the GDP to legitimize one's national debt now is just PONZI, I say again- PONZI- a there is a limit to how much U can inflate the economy, land, space and global warming remain limitations you cannot defy. Printing new money is simply theft and a betrayal of the existing holders of one's currency [read Zimbabwe/ Mugabe]. If the government is in for bankruptcy, then let it be now, and the whole world will learn it a lesson against such irresponsible profligacy. There is no need for an encore replay of modern day Greek tragedy.

Don't worry, if Greece suffers bankruptcy they can still seek UN food aid or rely on agrarian economy perhaps life in Greece would be better if the Greeks didn't depend on borrowed monies and the other Europeans didn't lend so generously. Castro in Cuba I believe knows something about agrarian economics, Greece might do well learn in that respect although where democracy is concerned, I think the Greeks need no introduction.

Definition of terms, More Pictures below.
Definition of terms.
Sovereigns [wiki]: aka sovereign debt receipts (bonds) that earn holder interest (coupon rate) payable annually. Bond durations range from 1yr to 30+yr etc
Face value (aka par value) [wiki]: The face value stating the principal sum collected and promised to bond holders upon maturity of the bond.
Haircut [wiki]: The size of loss in face value of a bond/ debt to creditors- happens especially during the financial liquidation of an entity (e.g. Borders bookshop), Greece.
IMF [wiki]: International Monetary Fund
ECB [wiki]: European Central Bank.
And as the sun sets, here's a look at the relative sizes of our national/personal debts (as a % GDP):

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[p.source: You Can't Solve A Debt Problem With More Debt]

Let us not expect the next generation pay for our debts. Let us all repent before it is really all much too late.

Comments welcomed,
Love,God Bless,
03Jan2012: ECB/IMF announcement of Greek bondholders haircut- what is holding them back?
03Jan2012: ECB/IMF announcement of big haircut for Sovereign debt- what is holding them back?
03Jan2012: IMF/ECB announcement of big haircut for Sovereign debt- what is holding them back?

A1: 05Jan2012: World’s Biggest Economies Face $7.6T Debt
SBY: 05Jan2012: Biggest Economies Face $7.6 Trillion Bond Tab
SGC:05Jan2012: World’s Biggest Economies Face $7.6 Trillion Bond Tab as Rally Seen Fading

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