Quote for today concerning Greece’s default causing a $3.2 billion liability:
The restructuring will shave $138B off Greece’s $487B debt. Non-elected Minister Lucas Papademos called the deal a “historic success”. He continued, “For the first time, Greece is not adding debt but taking debt off the backs of its citizens.” You’ll have to forgive Papademon, like his friends, he often confuses the words debt and money. I’m sure he meant that they would be taking money off the backs of its citizens. Forget about the upcoming madness with Spain, Portugal, France and finally the US. Do you really think the “net” 3.2B CDS Greek exposure is the true liability? I’ll help you with the answer. If they sold a couple hundred billion in fictitious insurance and immediately took the proceeds and levered them, say a 100x and dumped it on themselves, proclaiming, “It’s raining!”, do you think they will be able to cover the insurance claims now? I guess we’ll find out if chopping off the head of a zombie bank can really kill them.
From Zerohedge.com
David DeGerolamo
