The Credit Crisis Financial Stocks Short Journal

Wikileaks will get the bank data of the tax evaders, its funny, if they publish it that they will help the very goverments they claim to be criminals and that are trying to kill them
 
"The debt crisis that began in Greece now threatens Portugal and Spain. EU governments aim to find a solution by March, German Finance Minister Wolfgang Schaeuble said Jan. 13. Purchases of outstanding Greek debt, lower interest rates on rescue loans, aid for Portugal and guarantees against excessive debt are all being considered, four people with direct knowledge of the talks told Bloomberg News last week.

Interest Rates

“A discussion has opened on the cost of borrowing which is very important for us, meaning lower interest rates,” he said.

Papaconstantinou said only he and Papandreou were authorized to talk about the country’s debt. The government yesterday denied being in talks to restructure its debt with private creditors after two government ministers spoke out in favor of the option.
"

http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=a_wEQDviw3Sg

If this really happens then it seems that the EU will be headed to the path of fiscal transfers at least for now. That is a 'solution' that I haven't seem much people giving too much attention to but the greek crisis could end tomorrow if they make a large enough of a transfer
 
Meredith Whitney took a lot of heat for her muni call but I don't believe the call is that crazy
http://www.businessinsider.com/vall...to-stick-it-to-its-unsecured-creditors-2011-1

Valejo will pay out 5-20 cents on the dollar to creditors. Her math was criticized but I believe people misunderstood her. She said 50-100 defaults or more totaling hundreds of billions of defaults. The muni market is a $3T market, put a large default rate there and the hundreds of billions can happen. I dont know if she is right(probably not as pimco has vast more expertise there and disagree with her) but I do know that she is more likely to be correct than her critics think
 
I dont believe Pimco is having a large conflict of interest there, Bill Gross had no problem avoiding the structured fixed income products for years during the bubble because they just didnt understand them
 
Their disagreement seem to be on the issue on whether the municipalities will succeed in their fiscal efforts and whether they will get bailed out by the federal gov. I can't possibly see NYC muni bonds defaulting given that the city is larger than lots of countries, there might be a few more TBTF munis out there
 
You must log in or register to reply here.
Back
Top