"If you're going to panic, do it fast and beat the crowd." ~ Jesse Livermore

Monday, October 31, 2011

Credit-Default Swap Risk Bomb Is Wired to Explode: Mark Buchanan

Credit-Default Swap Risk Bomb Is Wired to Explode: Mark Buchanan
Bloomberg
This hidden network has been created by institutions that buy and sell unregulated credit-default swaps. These are essentially insurance contracts on bonds; in the event of a default on the bond, the seller of the swap promises to pay the buyer the ...
Notices of default could hit record low due to new Nevada law
Reno Gazette-Journal
National Default Servicing and Pasillas v. HSBC Bank "” the Nevada Supreme Court mandates "strict compliance" by banks in mediation to bring required documents and have deal-making authority present in mediations. » Oct. 1: AB284 mandates stricter ...
Crude Oil Rallying by Default
Inside Futures
by Chuck Kowalski of CommoditiesStreet.com Crude oil futures caught fire in the last week as the Eurozone crisis looks to have found some type of viable solution - at least for now. I think deep down, most investors who are knowledgeable in economics ...
Despite Market Reactions, Global Financial Crisis Still Looms Large
Zimbabwe Guardian
Contagion hаѕ bееn thе concern — thе dreaded ripple effect frοm Greece, whісh іѕ brοkе аnԁ broker. Fοr thе moment, thаt's bееn averted, bυt іf conditions іn Greece don't improve — аnԁ here's modest hope οn thаt horizon аt thе moment — thеn thіѕ ...
A Default By Any Other Name...
Seeking Alpha
Aha, one thinks, they've found a solution that doesn't involve Greece going into default. They reached a "deal." But wait a minute. The second line reads: "Private Investors to Take 50% Haircut." What is a 50% haircut if not a default? Let's see here. ...
Financial crisis forces people to rethink spending and debt
Evansville Courier & Press
By Mizell Stewart III EVANSVILLE — The financial crisis and resulting recession has wreaked havoc on household balance sheets, forcing families to think much differently about spending and debt. Unemployment and falling home prices have threatened the ...
A little help from the east
The Guardian
Given the economic and political weight of the eurozone, the crisis has the potential to match the damage wrought by the 2008 US financial crisis on the global economy. So China should welcome last week's agreement in Brussels and, in advance of the ...
Default is officially a financial management technique
Examiner.com
President Obama has effectivly created a loan relief scheme that is predicated on default. This will enable and perhaps even encourage, more borrowers to borrow beyond their means because at a measured pace of minimal re-payment ( 10% + 20 years) ...
Large E&O claims stem from financial crisis
Business Insurance
The financial crisis' effect on real estate-related business is being felt in errors and omissions liability coverage. Banking and diversified financial firms that told their clients to invest in risky creditdefault swaps or subprime mortgages now ...
EU Crisis Contagion Risk Exists, Hatzius Tells Der Tagesspiegel
Bloomberg
European economic data remain weak and “contagion is still always a risk” for the US economy, Hatzius said in the interview. Goldman forecasts a slight recession in the euro area for the fourth quarter of 2011 and first quarter of 2012, the newspaper ...
FHA Finds Some Borrowers More Likely to Default on HECM Tax and Insurance
Reverse Mortgage Daily
Borrowers in HECM default share some common characteristics, the Department of Housing and Urban Development reported to attendees of the National Reverse Mortgage Lenders Association conference in Boston last week. Reporting on data compiled in recent ...
The Euro Crisis: Doubting the 'Domino' Effect
Wall Street Journal
One does not have to deny the role of contagion to believe that Lehman was not the domino that toppled the others. But our financial crisis was caused by factors that affected the entire system, just as all corn kernels pop when they are warmed by the ...
A student loan default can trigger dire consequences
Daily Herald
Two weeks ago, the Federal Reserve Bank of New York reported the newest stats on student loan debt. Last year, for the first time ever, the amount of loans taken out by students hit the $100 billion mark. What's more, USA Today recently reported that ...
How government is to blame for global financial crisis
Credit Writedowns
Countrywide was not a Glass-Steagall issue, nor was Bear or Lehman or any of the other major problems from the credit crisis. In fact, the 'fix' for the investment banking business model was universal banking as all of the existing investment banks ...
The Dance of the Weak Sisters – Part 2
Global Economic Intersection
You must default on all or part of your international debt. This is a complex and tricky business. I offer guidelines below, but technical details will remain to be worked out. The President should announce that the country will be leaving the Eurozone ...
Eurozone Rescue Plan: Lessons From Argentina's Currency Crisis
Seeking Alpha
In both cases macroeconomic adjustment is impossible through the exchange rate, which leaves internal devaluation (ie austerity) and/or debt default as the only remaining options. 2. Both policies worked well for about a decade. ...
Sanjaya Baru Merkels moment
Business Standard
Every major financial crisis has geopolitical consequences. The financial crises of the 1980s and 1990s in Latin America resulted in the emergence of Brazil as the dominant regional power, overtaking decisively other competitors like Mexico, ...
Securities Law Prof Blog: Lo on Financial Crisis Literature
By Securites Lawprof
The recent financial crisis has generated many distinct perspectives from various quarters. In this article, I review a diverse set of 21 books on the crisis, 11 written by academics, and 10 written by journalists and one former Treasury Secretary. ...
Securities Law Prof Blog
Lo on Financial Crisis Literature - Legal News Directory
By admin
Reading About the Financial Crisis: A 21-Book Review, by Andrew W. Lo, MIT Sloan School of Management; MIT CSAIL; National Bureau of Economic Research (NBER),
Legal News Directory
Fitch: Greek debt deal consitutes a default | ForexLive
A 50% haircut constitutes a default. The only one's who don't seem to know it are the ISDA, the one's who declare what is or is not, a credit event, and the ECB, which can't accept bonds deemed to be in default as collateral. Share and Enjoy: ...
ForexLive

Greece: Why Not Just Call It A Default Now?
Seeking Alpha
If it's voluntary, the thinking goes, then it won't count as a “default.” Not having it count as a default, in turn, means it won't trigger billions of dollars worth of credit default swaps, which are the credit derivatives (ie insurance policies) that ...

Greek deal may imperil sovereign CDS market
Reuters
By Sarah White and Douwe Miedema LONDON (Reuters) - The future of the Credit Default Swap (CDS) market -- used to hedge against the risk of a country defaulting -- may be at risk if these derivative instruments do not pay out after this week's rescue ...
Euro falls as Fitch calls Greek deal a default
BusinessWeek
The euro is falling against the dollar after Fitch ratings agency said the deal reached by European leaders to cut Greece's debt load would constitute a default for the country. In midday trading Friday, the euro fell to $1.4170 from $1.4216. ...
Preventing financial crisis "true test" for G20: Zoellick
Xinhua
WASHINGTON, Oct. 28 (Xinhua) -- The true test for the G20 will be whether it can prevent a future financial crisis, World Bank Group President Robert Zoellick said Friday ahead of the upcoming G20 summit in Cannes. "The world economy is hobbled not ...
Greece's continuing cycle of debt and default
Business Standard
The ongoing financial crisis in Greece is a familiar situation for Athens. Greece has been in debt since its war for independence from the Ottoman Empire in the 1820s, which means international creditors and foreign sponsors have played a role in Greek ...
Queen asks Commonwealth leaders to rise up to global insecurity, hunger ...
The Nation Newspaper
By Yusuf Alli and Vincent Ikuomola, Australia 4 minutes ago •High-powered women ... Bangladesh Prime Minister Sheikh Hasina, the Queen, Julia Gillard, and Trinidad & Tobago PM Kamala Persad-Bissessar. Source: The Daily Telegraph Queen Elizabeth II ...
What to do in case of default
Hindu Business Line
Despite all your homework, you may find that the company in which you invested develops afinancial crisis and is unable to repay its dues. Or it may simply be a case of 'loot and scoot'. The defaults by Lloyds Finance in the late 1990s or Morepen ...
Legal challenge over 50 per cent write-off agreement could delay eurozone's ...
This is Money
The default question is likely to be one of several details that need to be ironed out before the eurozone rescue is deemed a complete success. It and other potential stumbling blocks will be at the top of the agenda at the meeting. ...
Who will pay for the euro bailout?
Scotland on Sunday
At least some of the PIIGS will be jettisoned (Sarkozy pointedly admitted on Friday that Greece should never have been allowed to join the euro). In such a scenario, the Germany-led countries – including France and the Benelux nations – would finally ...
Europe Deal Doesn't Take Care Of The Europe Crisis
World Of WallStreet
"people have begun to closely examine the details of the European debt deal, they have started to realize that this "debt deal" is really just a "managed" Greek debt default." "But investors are not stupid. Greece was allowed to default. ...
Oil prices drop following day that saw big gains
NewsOK.com
Oil prices dropped Friday as investors acknowledged that Europe needs to tighten its belt for years to work through a credit crisis and factory production stalled in Japan. By CHRIS KAHN Leave a comment NEW YORK — Oil prices dropped Friday as ...
If Things Are So Bad, Why Is The Market Going Up?
Seeking Alpha
I am bearish on in a medium term time frame due to my concerns regarding the viability of the plan recently announced in Europe to prevent systemic economic and financial contagion. In this particular case, my timeframe for the current European plan to ...
Clearinghouse over-confidence
Sunday's Zaman
Worse, as we saw in the financial crisis, if many financial institutions have many such contracts, a rumor of insolvency can induce all of one institution's derivative counterparties to demand collateral or payment simultaneously, triggering a run that ...
A Knee-Jerk Stock Rally And Lindsay Lohan In Playboy
Forbes
So EU bureaucrats, in their haste to 'stick it to speculators and short sellers,' may actually bring about a collapse in demand for the debt of other PIIGS countries, as CDS is no longer a reliable hedge. If so, the need to refinance Italian debt would ...
Fitch Solutions: ConAgra CDS Widen, General Mills Comes In Ahead of Earnings
Benzinga (press release)
Though credit default swap (CDS) spreads on ConAgra (reporting today) have widened 15% over the past three months, the company has kept pace with the broader North America food and beverage sector. CDS liquidity for ConAgra has remained largely ...
Occupy by the books
London Community News
David Caloren, supervisor at the London Public Library central branch, put up a display with books from globalization, the financial crisis and the growing gap between the rich and the poor, to raise awareness of the Occupy movement. ...
German Chancellor Angela Merkel urges crisis contagion “firewall ...
By XinhuaNET.COM
Merkel urges crisis contagion firewall, stricter EU rules German Chancellor Angela Merkel Wednesday said the eurozone debt crisis and fundamental weakness.
Siam Daily News Online
Cheat sheet: Big players in the financial crisis - what they did & how ...
Hat tip to SDRman, on another board Excerpt: Widespread demonstrations in support of Occupy Wall Street have put the financial crisis back into the... ... As we've reported, a hedge fund named Magnetar worked with banks to fill CDOs with the riskiest possible materials, then used credit default swaps to bet that they would fail. Magnetar says that the majority of its short positions were against CDOs it didn't own. Magnetar also says it didn't choose what went its own CDOs, though ...
The Wall Street Examiner
How Europe Handled the Financial Crisis » Politics Plus
By TomCat
Here is the US, our efforts at handling our financial crisis. We have made whole the people, whose criminal greed imposed the crisis upon us, given the political party most responsible for enabling it tremendous gains in the last election, and ...
Politics Plus
Will Greece be in Default under New Plan?
Greece bondholders agreed to take a 50% haircut under the new EU plans... but does that constitute a default?
About.com International Investing

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