Mainstream Media Tries To Help Cover-up of Greek CDS Losses
The propaganda machine that surrounds the Greek CDS default continues to amaze most who are looking for winners and losers. Every loss number is "qualified" from someone else..."The BIS puts the total potential loss at $3.2B" or "the DTCC estimates total losses of $3B."
Here's an article in the Financial Times quoting the European Banking Authority that states:
"The biggest loser in the payout, according to European Banking Authority data up to last September, was likely to be UniCredit, the Italian bank, which may have to pay out an estimated €240m, small change for most big banks.
Greek CDS Drama Holds Lessons For Investors
http://www.ft.com/intl/cms/s/0/0997e7f4-71c4-11e1-b853-00144feab49a.html#axzz1pmDwl1UM
Look at all the promotion type language here:
"It's over. The long-running drama over Greek credit default swaps finally came to uneventful end on Monday..."
"market disorder was avoided"
"payout was considered fair value by many strategists and investors"
"meaning no nasty surprises"
"It is good to close the door"
"For investors and bankers, sovereign CDS has passed its first test with Greece"
Now wait just a minute. According to the FT article the biggest loser lost Euro240m but then how come the first and only bank to declare their losses so far says that they will lose $1.3B?
Here's the Bloomberg article from last week...
Austria Faces $1.3 Billion Bank Injection After ISDA Triggers Greek CDS
The next step is the settlement of the Foreign Law Bonds on March 23rd after the markets close. Then all the results will be set in stone and those planning to sue for breach of contract - either the Greek bond or the CDS - can let loose.
The game continues as the mainstream media tries desperately to convince the world that there is nothing wrong with Credit Default Swaps and you should go about your day-to-day business.
HA! The damage continues to mount behind the scenes.
Bix Weir www.RoadtoRoota.com
