tag:blogger.com,1999:blog-3240565408401956331.post2885283000890673922..comments2023-07-08T05:49:38.333-04:00Comments on Larry Davidson's Thoughts on Macro and Other Stuff: Monetization for Europe – Take two aspirins and your head should clear up soon.Unknownnoreply@blogger.comBlogger4125tag:blogger.com,1999:blog-3240565408401956331.post-49389353297577254072010-05-12T08:47:45.560-04:002010-05-12T08:47:45.560-04:00Dear LSD. Last evening I watched one of your favs ...Dear LSD. Last evening I watched one of your favs – Glen Beck – who talked about the Greece bailout and had David Asman of Fox News/Fox Business News on the show. Asman explained the credit default swaps issued by AIG to cover in the event of a Greece default on the bailout – which most likely will occur. AIG will again be caught with its pants down and U.S. taxpayers will again be forced to bail it out.<br /><br />The U.S. portion of the IMF is 17%, amounting to $54B to bail out Greece.<br /><br />The current U.S. financial reg legislation does not include Fannie/Freddie, the latter of which just asked for $10.6B following its 1st quarter loss of $8B. Both Freddie/Fannie have lost $145B.<br /><br />Mikey32304 is correct – the house of U.S./global cards will fall. Owning all the gold in the world will not protect any of us from the impending financial meltdown. Better we start our own home farming and wine-making to get us the through . . . .Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3240565408401956331.post-66773600259696056272010-05-12T08:24:14.904-04:002010-05-12T08:24:14.904-04:00Just saw some more bad news in the credit default ...Just saw some more bad news in the credit default swap movement yesterday, the prices had a significant jump yesterday. For those of you who cut class the day they taught credit default swap here is the short course. Credit default swaps are sorta like insurance for loans. So if a bank loans money to Greece the next thing they do is get insurance on the loan so if Greece does not pay them back they are not stuck with the loss. If the price of the credit default swap goes up this means investors are betting Greece will default on the loan.<br /><br />The really bad news is that the company writing the credit default swaps for the (mostly) German banks loaning the money to Greece is AIG. Since AIG is a wholly owned subsidiary of the US govt bail out program, already to the tune of hundreds of billions of dollars what this means in simple terms is that in addition to every thing else the US tax payer is stuck with the bill if Greece defaults.Unknownhttps://www.blogger.com/profile/15701395081467814624noreply@blogger.comtag:blogger.com,1999:blog-3240565408401956331.post-41227398694575284332010-05-11T11:27:42.367-04:002010-05-11T11:27:42.367-04:00NYT headline today about obama pushing the EU to b...NYT headline today about obama pushing the EU to bail out Greece.<br /><br />http://www.nytimes.com/2010/05/11/business/global/11reconstruct.html<br /><br />My guess is that sooner rather than later the house of cards will fall.Unknownhttps://www.blogger.com/profile/15701395081467814624noreply@blogger.comtag:blogger.com,1999:blog-3240565408401956331.post-4518218282901587292010-05-09T20:23:25.665-04:002010-05-09T20:23:25.665-04:00Two words I did not notice in your post are "...Two words I did not notice in your post are "bond vigalante". They function sorta like the cop that pulls over the drunk driver, and it does not matter if the drunk ate a couple of aspirins or not. Almost two weeks ago the WSJ discussed this<br /><br />http://online.wsj.com/article/SB124347148949660783.html<br /><br />I wonder how the vigalanties will react vis a vis Greece, and the other EU weak sisters.Unknownhttps://www.blogger.com/profile/15701395081467814624noreply@blogger.com