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Well, you gotta put your money somewhere, right? What sorts of choices do you have?

Nah, it's the season to blow up being short gamma...

Yep, that's a parallel development, but also supportive of a LIBOR/OIS widening.

That's been denied by just about everyone...

It's not about repricing the rate a little higher or lower. If the US banks pull their lines to EUR banks, it's not a function of higher rates. In that case, if the ECB has the x-ccy swap lines in place to the Fed, it can lend secured $ cash for term and the EUR banks don't care about having...

Latest I heard is that there's a mad scramble in the mkt for $ funding. European banks trying to get hold of term $ cash, 'cause they fear US banks will not be lending them any. The ECB might have to re-establish those x-ccy swap lines to the Fed, after all.

I think it's time for the "nucular" option from the ECB... Doesn't look like the mkt is in the mood to listen to politicians' promises any more.

The most recent IMF-engineered examples I know of are Turkey and Latvia. Turkey's fiscal position was worse during 2001 and, arguably, it's now in a much improved state. Improved enough to consider helping Greece with their issues.

Something like this, you mean (I posted this in another thread)? http://www.euronext.com/trader/summarizedmarket/stocks-2783-EN-FR0010405431.html?selectedMep=1

Maybe, but, if I had to guess, I'd say it's because a tightly structured setup, such as the Danish system, precludes the use of the housing mkt to further a more comprehensive social agenda.

Yep, kind of... As a borrower, you make payments that are based on the coupon. The other important aspect of the system is the way the mtge institutes (they're dedicated mtge banks) are structured and regulated. There's quite a bit of info on the web about the key tenets. Good question...

The Danish system has very little to do with the government. The govt's role is relatively limited and is confined to providing support and regulation for the mtge institutes, which are the credit intermediaries. Everything that has to do with interest rates, prepayment, etc is handled by the mkt.

What happens to a bond when yields go up? Each Danish mtge is an actual bond, with its own ISIN and its own mkt price. It's the oldest mtge mkt in the world and it's been working quite well for arnd 300 years now. The Danes have good cause to be proud of what they have.

I confess to being intensely curious, zd... What am I, pray tell?

This will be my last response to you, HiF trader, since I see no point in conversing with fools. As far as I am concerned, being a shill or any other fate is far, far better than being an ignorant, uninformed, puerile simpleton lacking all critical faculties and without a single original...

It's DV01 or duration-weighted, rather than 1:1...

That is what I heard, from a reliable source... Obviously, my information may be wrong, still. In other news: *ECB SUSPENDS GREEK COLLATERAL RULES `UNTIL FURTHER NOTICE' http://www.ecb.int/press/pr/date/2010/html/pr100503.en.html

Well, this is an example: http://www.nytimes.com/2010/04/30/opinion/30krugman.html

Huh? Yet again, what does the Fed have to do with any of this? The US Treasury issues debt and the US govt will be providing the funds to the IMF. What printing/monetization are you talking about? I am obviously referring to the subject of the article that the OP quoted. The article...

morganist, I know all the usual criticisms... I am hopeful that the issues can be overcome, though. The goal is worth it, in my view.