Posted by Larry Doyle on March 2nd, 2012 7:42 AM |
Writing down sovereign debt by over 50% and subordinating one class of bondholders from another –those being the royalty ensconced within the European Central Bank — would not qualify as a “credit” event, now would it? No way! Of course not! Why would it?!
Not when those compelled to pay out on the supposed “insurance” within derivative contracts are the royalty within other large international banks, and they sit in the positions of judge, jury, and counterparty in the case.
Welcome to the world of international finance circa 2012. (more…)
Posted by Larry Doyle on February 21st, 2012 10:30 AM |
War. Street hockey. Hide the belt. Kick the can. Flipping cards.
The games of my youth growing up in my neighborhood section of Boston provide very fond memories. The best part of these games was the simple fact that everybody was included, the rules were clear cut, and the older kids looked out for the little guys.
In a manner of speaking, the central bankers of today are similarly engaged in a few different games. What are the games being played on both sides of the Atlantic? Kick the can and charades. Regrettably, the central bankers are not playing by the rules as we defined them.
Posted by Larry Doyle on May 5th, 2010 8:20 AM |
With social unrest increasing in Greece, anxieties skyrocketing across the EU, and the Euro making new 12 month lows, the question begs as to whether this crisis within the EU can be contained. Is the EU, with the support of the IMF, willing to collectively underwrite the fiscal disaster currently focused within Greece? The German citizenry is showing very little appetite to subsidize this Greek tragedy.
While the EU’s political fortitude is a critical question, ultimately the reality of the mountainous debt levels must be faced. Global government stimulus has been able to mask, if not outright disguise, these debts for a period, but the debts themselves are not going away. How will the EU address this debt?
1. Devalue. That’s a given. It’s only a question of how and when.
2. Restructure. Look for more on this.
3. Default. Do not discount this reality. (more…)
Posted by Larry Doyle on April 28th, 2010 10:44 AM |
Just how big is the financial sinkhole swallowing Greece? Bloomberg just reported that the hole is likely three times the size previously reported. Where does it end? This breaking news is a MAJOR curve on our economic landscape. (more…)
Posted by Larry Doyle on February 23rd, 2010 11:15 AM |
$300 million is a lot of money.
Was it enough for the preeminent firm on Wall Street, Goldman Sachs, to risk its reputation? Apparently it was because that is the reported figure Goldman earned from transactions it structured and executed with the nation of Greece to help hide that nation’s fiscal woes. I do not discount that Goldman took risk in these transactions, but $300 million is a lot of money.
Believe me, every firm on Wall Street would sell its soul for a lot less than that. Goldman Sachs was not the only firm on Wall Street to enter into derivative transactions with Greece or other nations to cover declining fiscal positions. Goldman is merely the highest profile firm.
What does a firm like Goldman do now that it is being besieged by regulators, central bankers, and national leaders, primarily Angela Merkel of Germany, for structuring and executing these transactions? (more…)
Posted by Larry Doyle on February 17th, 2010 2:28 PM |
As more details are released about Goldman Sachs’ derivative transactions that allowed Greece to disguise its overall financial health, the question begs as to the integrity of this very storied Wall Street franchise. In short, I would define Goldman Sachs as ‘The Great Enabler.”
How did ‘The Great Enabler’ operate? Recall that Goldman CEO Lloyd Blankfein indicated a few months back that Goldman Sachs was doing “God’s work.” He failed to mention that the deity to which Goldman prayed bleeds green. Additionally, the prayer which Goldman offered was nothing more than ‘maximize revenues now, worry about problems later, and keep your mouth shut.’
For a peek inside Goldman’s prayer book, let’s review a recently released report from Bloomberg, Goldman Sachs, Greece Didn’t Disclose Swap Contract:>>>> (more…)
Posted by Larry Doyle on February 16th, 2010 10:38 AM |
April 15, 1912. Early in the morning of this fateful day, the unsinkable Titanic went below the waters of the icy Atlantic and sank to its eventual berth on the ocean floor.
In the process of hitting the iceberg that dealt the Titanic its fateful blow, the air of invincibility surrounding this greatest of ships became an air of inevitability.
With all due respect to those who perished that cold night in those icy waters, are we witnessing a similar dynamic playing out on our global economic landscape for the once proud nation of Greece?
Were derivative transactions executed on behalf of Greece by Goldman Sachs mere band-aids covering massive holes in the hull of this once proud nation? No doubt. (more…)