Greece Default Is Official; Insurance Payouts Triggered

Greece Default Is Official; Insurance Payouts Triggered

www.cnbc.com

A group representing dealers in credit default swaps decided Friday that Greek's bond swap constitutes a "credit event" that entitles holders of Greek credit default swaps to compensation. The "yes" vote by the International Swaps and Derivatives Association triggers roughly $3.2 billion in CDS, which are insurance policies that pay out if a bond issuer defaults.

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Once a CDS event is triggered it gets interesting, will this be contained to Greece or will it now begin a Leaman moment for Europe spreading to Portigaul, Spain then Italy then who knows where, have the markets made enough of a buffer to withstand this globaly, i wonder. This was inevitable in my opinion but i know from watching the talking heads that a CDS event wasnt antisipated, that the "haircut" would make everything better for now, but now its over default is a reality, what happens next, comments please.

www.cnbc.com
(visit the link for the full news article)

Depending on how deep the CDS hole goes, this could get very interesting. Keep in mind that they wrote CDS on top of CDS so the 3 billion they are talking about could actually trigger CDS into the high 100's of billions to trillions depending on how they were leveraged. Domino effect might be in play, will have to wait until Monday now to see if this really something, or just another nothing to see here move along event.

Already posted in Global Meltdown forum but then I don't care as one of my threads on a similar issue got trashed.

Yes it will be interesting to see how deep the rabbit hole is now they've started digging to find the rabbit.

I didnt look in global meltdown for this thread, duhh, please refer to previous thread, my bad guys disregard this thread.
link to the first Greek thread - www.abovetopsecret.com...