50-60% haircut on Greece bonds could trigger CDS

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It wasn’t enough that the banksters sold garbage bonds and made dicey loans to Greece. Nope, they had to make huge bets on them too. Of course they made money doing both and certainly assumed if things went bad they could go whining to governments that they need another bailout.

Well, it’s game over on that. The coming massive haircuts on Greek debt will not only show the insolvency of the banks it will trigger enormous Credit Default Swap events where the seller of this faux insurance has to pay the buyer. We are talking gazillions here.

[this] will render the central bank immediately insolvent all else equal. What it also will impact is treatment of all other banks and pledged collateral valuations which is effectively the only bridge in the chasm between Mark to Unicorn and reality.

So, the Eurozone banksters will do what they do best, pretend the whole thing isn’t happening. God forbid they ever face up to the extent of their incompetence, greed, and corruption.