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3 Month Dollar Lending (Repurchases) Back

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They know they've got to save French banks.

The moment France loses its AAA rating, the Euro in its present form is officially finished.

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3 months isn't buying a great deal of time....

In another 3 months this will probably be extended if they've managed to kick the crisis a bit further down the road.

If only the Greeks and other Club Med countries had borrowed in dollars, this latest action might have made a blind bit of difference then.

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3 months isn't buying a great deal of time....

In another 3 months this will probably be extended if they've managed to kick the crisis a bit further down the road.

They're clearly working towards the political timetable, a beefed up EFSF and a slightly less disorderly Greek denouement.

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They're clearly working towards the political timetable, a beefed up EFSF and a slightly less disorderly Greek denouement.

Ah, but will a Euro 450bn EFSF be enough to keep buying Italian and Spanish bonds on an ongoing basis, when 10yr BTPs yield is already back above 5.50% ?

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Ah, but will a Euro 450bn EFSF be enough to keep buying Italian and Spanish bonds on an ongoing basis, when 10yr BTPs yield is already back above 5.50% ?

It's the Merkel Put.

Who wants to go down as being the person responsible for crashing an entire continents currency, bankrupting multiple nations, causing a global depression and probably war?

They'll double down. It's all there is.

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I cant help but think that the elephant in the room here are credit default swaps. I bet there are lot of banks that have written them and are liable to repay lord only knows how much in the case of a default. It wouldnt surprise me even if Greece itself had taken out a lot of this insurance by some back handed method.

It is the only reason I can think of for all the madness that is going on. Clearly it is crazy lending more money to Greece who can never repay, and yet they are lending more money to Greece. Just why would they do that?

Why on earth do the credit ratings agencies tolerate that scheme whereby bond holders could 'volunteer' for a haircut, thus allowing the avoidance of a default whilst at the same time cutting back the debt owed?

There must be a lot of hedge fund managers expecting to get rich just as soon as Greece does go pop. Perhaps some of the heads of state have done the maths and found that it is cheaper to bail Greece out and bail them out when they have worked out how, than it is to bail out their own banks due to their stupid underwriting of all this credit.

And I have never managed to work out why anyone allows CDS' in the first place. After all, isnt the cost of taking out these things pretty much embedded in the rate of interest you get by buying a bond anyway?

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  • 295 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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