Silver as an investment

Category Archives: Cramdown

We Need A Crash To Sort The Wheat From The Chaff

Submitted by Charles Hugh-Smith of OfTwoMinds blog, Once the phantom collateral vanishes, there's no foundation to support additional debt and leverage. When a speculator bought a new particle-board-and-paint McMansion in the middle of nowhere in 2007 with nothing down and a $500,000 mortgage, the lender and the buyer both considered the house as $500,000 of […]

Argentina Stuns Bondholders With Scorched-Earth “Cramdown” Plan

With the impasse over the latest Argentina default going nowhere fast, late last night president Kirchner stunned its creditors when she announced what amounts to a cramdown plan for holdouts, in which all bonds would be stripped of their existing indentures and converted to local law bonds. Or, as some would call it, a “scorched […]

Dollar Strength Sparks Stocks, Bond, Commodity Cramdown

The USD Index is up 0.3% this morning driven mainly by EUR weakness. The USD Index’s break above recent highs (around 8amET) coincided with US equity and Treasury weakness but is having an even more significant impact on commodities.   US Dollar strength…   Led to Bond and Stock weakness in the US…   And […]

“The US Is Bankrupt,” Blasts Biderman, “We Now Await The Cramdown”

Submitted by Chris Hamilton via Charles Biderman TrimTabs' blog, US is Bankrupt: $89.5 Trillion in US Liabilities vs. $82 Trillion in Household Net Worth & The Gap is Growing. We Now Await the Nature of the Cramdown. There are many ways to look at the United States government debt, obligations, and assets.  Liabilities include Treasury […]

Overnight Sentiment: All About QE4EVA

Today is probably the first day in a while in which minute-by-minute rumors on the Fiscal Cliff will not be on the frontburner (with yet another late day rumor yesterday of an imminent deal turning out to be a dud, when it was reported that Obama’s latest grand compromise was to lower his initial tax […]

The Latest Greek "Bailout" In A Nutshell: AAA-Rated Euro Countries To Fund Massive Hedge Fund Profits

With constantly changing variables in what will be the fourth and not final Greek bailout, it has been relatively difficult to pinpoint just what the “fulcrum security” is in the ongoing restructuring that is not really a cramdown bankruptcy but kinda, sorta is, and more importantly where the money will come from. A big issue […]

Latest "E-TARP" MOU Sends Spanish Bonds Back To Monday Levels

In the aftermath of last night’s bombastic European announcement coming in the late night hours, in which Europe has virtually promised the kitchen sink, one would imagine that the response for the biggest beneficiary, Spanish bonds, would be far more dramatic. Instead after ripping 60 bps tighter in a kneejerk move, the yoyo reaction has […]

Deutsche Bank: "The Spanish Recapitalization Is Not Working" – A Market Shock Is Required

This weekend, everyone’s attention will be on the Greek elections, however it is Spain that has now become the “fulcrum security” of Europe. As such, events in Greece are merely a catalyst that will set off a chain of events that will have an impact not only on Spain, but on all of Europe, and […]

Details Emerge About Spain’s Cramming Down "Bailout" Loan

While details are largely missing in the aftermath of yesterday’s historic announcement from Spain, the one thing that we did catch inbetween the various conferences and announcements, and probably the most important thing, is that the ESM/EFSF funded bailout loan, whose use of proceeds will go to fund the FROB, not one which will rank […]

Live Webcast Of De Guindos Bank Bailout Announcement

Spain’s economy minister Luis de Guindos will hold a press conference detailing the terms of the bank bailout shortly. It can be watched live, and without translation, at the link below. In summary, the Spanish bank bailout is apparently a loan targeting the FROB, and at rates better than the market. In other words, the […]