Euro Crisis: Greek Solvency "To be Checked"

Prospect of Greek Default is Checked as Solvency is Questioned.

news.sky.com

Greece's solvency is being called into question, raising the stakes in its battle to avoid default.

Derivatives body the International Swaps and Derivatives Association (ISDA), has been asked to determine if a Greek sovereign credit event has occurred.

The identities of the people or organisations behind the query is unknown but they are believed to be 'market participants'.

(visit the link for the full news article)

This is just breaking now. Less than 2 days after the latest billion euro bailout is approved by Germany. Greece's solvency is now being questioned.

is this is? I think it could be. it just seems strange that although the bailout was agreeds i guarantee this will now make the Germans think twice about actually going through with it. If this turns out to be true. Then I think it is safe to assume that this IS the first domino to fall that will drag the rest down with them, or at least back into massive crippling recession!

Hold on your hats everyone. Happy times ahead.

Beware the ides of March!

news.sky.com
(visit the link for the full news article)

This just in on the Sky News Ticker.

The European Central Bank is now no longer accepting Greek Debt as Collateral for loans.

Yep this is it. Without that they have no where to go but down!!

The article states that if the investigators find that a "credit event has happened' it WILL trigger payout on credit default swaps. This means TPTB will get paid.

The Insurance brokers must be wetting themselves!!! a country like Greece going down will take surely the insurance company with them, but who. and who stands to make money from this. that is what we need to find out.

Can you say invested interest!???

sorry for being a noob here but does solvency mean like the chances of greace actually being able to pay back their loans?? if so, its a bit obvious they cant and they are gona fall and fall hard. along with the rest of the EU

No, the point is their "solvency" has now been brought "officially" into question. An investigation will most likely follow. if the finding is that a "credit event" has happened it trigger a default swap pay out to those who shorted Greek debt. Meaning they bet on a failure. Most likely this is done by people with prior knowledge.

Not only that. But if (when) Greece crashes out, it puts at further risk due to exposure to debt and the shockwave bouncing through the web of banks to other weaker countries, like Spain Portugal Italy and Ireland. it also opens up France Germany and the UK to massive losses.

You must have seen he effect the Iceland bankruptcy had on the economies of Europe. This will dwarf that. Welcome to 2008 again, only this time, he has been inside, exercising, and drinking, and he is drunk and angry for revenge!

It STINKS worse then 2 week old fish!!

But the moves do little to inspire confidence over Greece and a Government minister has told Sky News the second financial bailout for his country, worth an additional 130bn euros (£110bn) is not sufficient.

Not sufficient?????

This is like lending money to a gambling addict to pay for rehab ( in Las Vegas) its pointless!!

Just google Max Keiser reports on Russia Today and here what he has to say on all of this.
Greece has been bought and sold. He says they should have followed the path of Iceland ands he's not the only one.

reply to post by starchild10


There are a lot of places that should have done what Iceland did. But they didn't So here we are. We here on ATS have been screaming this since 2008 / 2009.

What we are seeing now IMO is the start of the end. Where this will end who knows, However it won't be good. Don't forget, that what happens in Greece / Euope / Affects the markets in Asia and the US. No one is sfe from this.

well thank god i know how to hunt and fish and have a big stash of food because here in Ireland, were going to get pounded by this my money will hardly be able to buy a tin of beans by the time its nearly over...

reply to post by scoobyrob


I am sorry to say, but yes, this will screw the markets. The point being with Irish bonds already under high scrutiny, any further hike in interest rates, and people stop investing. Without money to shore up the government spending (to banks in repayment) then there is only one way.

Ireland sold it self a while. your debt is 1300% of GDP. you annual repayments are +90% of GDP. there is nothing left.

Its only a matter if time. Sorry to say.

wow!! 90% of gdp a year is spent of loan repayments???
and we are getting screwed up the a$$ for this? ya i knew we were sold out a good while ago, I'm just trying to figure out what they want with this country, what have we to offer

anyway to get back on topic, how long to you think it will be before this situation starts to have an impact on the markets or us!!

Its all down the centralization of power by the banking elite. Its a plan that has been going on for many many years. its not what they want from Ireland, it just part of the web of control. Don't forget Ireland is very VERY important as a global center of international asset lease financing. Its a tax haven for such activities. That industry is a wealth creation activity. So yes it's important.

As for how long. I don't know. This is the start. I am waiting to see the Market reaction to the on the FTSE, DAX, and CAC as well as the response by commodity prices, and the value of the Euro. how the US will react this afternoon will be interesting. They have always reacted to Greek news, so now we have the possibility of a default having occurred. they might wait for findings. which is by 1700 GMT tomorrow.

People might hold their breathe and hope for the best however, as soon as I saw the phrase "credit default swap" on Greek debt, meaning people get paid if the investigators find "something has happened" means in my mind. This WILL happen. and it's game over.

People will get richer. the most of the rest of us, will get screwed.

reply to post by JakiusFogg


But what can the states do anyways... Isn't the American debt supposed to be larger than Greece'. If this causes a ripple through Europe, the US will be next... Anyone stocking up butter and water?

reply to post by flice


Butter is perishable and short life. if you stock up, it will go bad.

And yes the US debt is larger in size, than any other on the planet. Including unfunded liabilities up to an estimated $88 trillion!!.

so ripples in the markets in the event of a default finding will cause the global banking system to
a, cash in
b, have a collective heart attack.

What the ramification of this will be, I don't rightly know. Considering the market is now all about fear greed ans speculation. I can guarantee whatever happens, like in 2008 if the velocity of money slows down in the banks, it speed up from your pocket.

Hyper inflation is one possibility, currency debasement is another.

Time to roll the dice folks.

I think we've all known this was coming, even if we couldn't be sure what form it would take. As one crisis among many right now, this is sure a doozy. Now it's time to watch Portugal, Spain and a couple others who some have said may follow. If Greece falls alone, it's a disaster. If Greece starts a trend, it's a calamity. Lets see which we'll all watch next.

reply to post by Wrabbit2000


Agreed, if tomorrow they decide to launch an investigation into the possible of a default event having happened. Then look out for pre-order sale of Rolls Royce's, and people celebrating in the city. This will be the 5 minute warning to duck and cover!

This is odd. No other media outlet seems to be carrying this story. Sky themselves seem to be shunting it off the front page.
Considering the decision deadline for the investigation to go ahead is tomorrow at 1700 GMT which will trigger the possibility of payouts if anything is found in the investigation. I have to wonder if Sky dropped this story "too early"???

Any more thoughts??

No. I know everyones gone running for the hills! WAIT FOR MEE!!

Originally posted by JakiusFogg
The article states that if the investigators find that a "credit event has happened' it WILL trigger payout on credit default swaps. This means TPTB will get paid.

The Insurance brokers must be wetting themselves!!! a country like Greece going down will take surely the insurance company with them, but who. and who stands to make money from this. that is what we need to find out.

Can you say invested interest!???

edit on 28/2/2012 by JakiusFogg because: (no reason given)

That's sweet. Don't TPTB always manage to get paid. It's always the "small" people who end up paying for being poor.