Is September 20 Greek Default Day?

If Greece is going to default, September 20th seems to be as good a day as any. Actually, it is far better than most to be GD-Day. Two big bonds, the 4.5% of 2037 and the 4.6% of 2040 both have coupon payments due that day, totalling 769 Million Euro. So if the IMF wanted to avoid letting another billion euro go down the drain, September 20th would be a good day to do it. The IMF seems to have delayed approving another tranche for now, so Greece must already have the money for this payment? The Fed Scheduled their meeting for 2 days. It now starts on September 20th. Maybe a co-incidence, but what better way to be prepared for new emergency policies? CDS "rolls" on the 20th. On the 21st, all Sept 2011 CDS will have expired. My guess is that banks own more protection than they sold to the September 20th date, so defaulting while those contracts are still valid would be a net benefit to the banking system. As a whole, triggering CDS will likely benefit banks as I can find banks that say they own protection against positions, but find more hedge funds are uninvolved or have sold protection to fund shorts in other sovereigns.

Former UK PM Brown Comes Clean On 'Grossly Under-Capitalized' European Banks

It appears that once politicians become disentangled from the incessant need for happy-speak and propaganda, truthiness is much more capable of flowing from their orifices. During a speech at the World Economic Forum on Friday, Gordon Brown explains what everyone in power knows, yet is loathed to admit, that "The euro cannot survive in its present form, it’s going to have to be reformed dramatically. We are I think at an hour to midnight in the way that we look at this issue." He adds "European banks as a whole are grossly under-capitalized."





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Watch The Latest Attempt To Occupy Wall Street (On A Weekend?) Live

If there is one thing America has had a lot of, it is (failed) attempts to make a political statement by "occupying" Wall Street, although how anyone makes a "statement" on a weekend, when all the trading on Wall Street is done out of Chicago and Mahwah (and not on Saturday), and all the actual capital decisions are made out of midtown (and Shanghai) is a little confusing. Today, Operation EmpireStateRebellion, for whom this is neither the first, nor the last attempt to organize an improvized rebellion, has proceeded with its latest such statement, which will come and go and achieve nothing, as unfortunately the welfare and entitlement society of the US is ingrained far too deeply fo anyone to actually willingly give up on their paper 201(k)s and Social Security benefits, no matter how much of an underfunded ponzi they may be. That said we do wish them all the best. Those willing to watch this weekend gathering of idealists can do so at the webcast (with commercial interruptions) below.





Solyndra's Whorehouse Lender

Posted by: Bruce Krasting

Post date: 09/17/2011 - 13:42

There are just so many things wrong at the Federal Financing Bank.

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