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Re: Here Is How The 50% Greek Haircut Is Actually Just 28%

By: Decomposed in ROUND | Recommend this post (0)
Thu, 27 Oct 11 4:35 PM | 52 view(s)
Boardmark this board | De's Test Board 		Msg. 35867 of 45651
(This msg. is a reply to 35865 by Decomposed)
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Zero Hedge's Tyler Durden says: "The Greek haircut will be 50%, which is still insufficient as it excludes ECB Greek debt holdings, plus as the IMF noted, a 60% NPV haircut on all bonds is needed for Greece to return to viability."

So, when this is all over, Greece will only be slightly underwater. It will only drown a LITTLE. That's reassuring.

Greece is comparable to APPLE. Now think about how much worse it is going to get when the vastly larger nations of the EU begin to experience similar debt problems. 




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Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months

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Re: Here Is How The 50% Greek Haircut Is Actually Just 28%
By: Decomposed in ROUND
Thu, 27 Oct 11 3:55 PM 		Msg. 35865 of 45651

"Haircut," of course, is a euphemism for DEFAULT - a term jounalists are being kind enough to avoid. But that's what this is - a default.

So, we're now seeing that the FIRST step the EU takes to solve its debt problem is to default on debt. That's actually smart. It's what we will eventually do with our debt. (Versus the alternative, to print the money and pay it.)

Guess what SHOULD happen to interest rates now in the PIIGS countries? (Portugal, Italy, Ireland, Greece and Spain)

They should jump, doing further damage to home prices and business outlooks throughout the EU. Everyone who bought Greek bonds just got the shaft, so investors should be TRIPLY cautious about buying more from any of these nations. The EU has shown its hand.

Surprisingly, here at home, the pundit predictions for Market Open are that there will be an entry "stampede" - a term usually reserved for panics. Oh well. My 401(k) money exited the markets on Friday. If the Nasdaq climbs 50 points and remains there for two days, then the "strong resistance" I called at 2700 will be breached.

So, let's see if that happens.

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