Friday, March 9, 2012

Jesse's Café Américain: MF Global Trustee Freeh Asks Court to Pay MF Globa...

Jesse's Café Américain: MF Global Trustee Freeh Asks Court to Pay MF Globa...: The entitlement of the financial class is the gift that keeps on giving. And as for the customers? They are being asked to surrender th...


  1. Kli,

    Don't know if you ever posted this guy but I really love his commentary, eye for the obvious, sarcasm and calling out da Bull S@$T.........

  2. What's sad is a guy stealing bread to feed his kids equals locked Mother Fuckers get more money after bilking billions....

  3. so things are really humming huh...check out the graph..gas use down to 2001 levels with lots more drivers...

  4. You have to wonder what their life's are all about Honestcreditguy.
    Here's a link with gold and miner charts Kli, along with some interesting comments.

  5. Here is a question I have.

    The ISDA has apparently agreed that a "Credit Event" did occur with the Greek Bond swap. Thus, the Credit Default Swaps (CDS's) have been triggered for about 3.2 billion. If these CDS's are insurance, than someone (Bank?) must have received the premium and, thus are now obligated to pay up. But, it seems from the news that there will be a bond auction on 3/19 which, I assume, is being used to raise money to cover the CDS's. So, it doesn't sound like there is a pool of money already in place to pay these CDS's that triggered. I haven't read of any responsible party that is going to pay out these CDS's.

    Is that how others understand this??

    It would seem then that the CDS market is rather flimsy. The bond holders are paying a premium for insurance, yet no pool of money is then available to cover. Typical insurance companies must have monies on hand to pay out claims.

  6. They'll cover the cds here......its the next cds bombs that will bury them...and they will come

  7. Well, I think to answer my own question, there IS NO pool of cash to pay these CDS's. It is my understanding that the CDS market was completely unregulated. In other words, various entities could sell CDS "insurance", but not really have a adequate pool of money to pay claims. I believe Merrill Lynch sold "53 Trillion" in CDS's by taking in something like 5 million dollars in premium for every 100 million in "insurance". Now, there is no way anyone could pay out 53 Trillion, yet no one was regulating this market, so Merrill could collect all this premiun money without any government oversight type agency saying "Hey, are you guys nuts or something?" "You can't sell and accept all that CDS exposure."

    So, I agree that the ISDA will allow some triggering of these CDS's in the beginning of these defaults. They have to do this to keep investors in this Bond Market Game. But, a time will come when they will no longer allow triggering to occur. The PTB will simply rewrite the various laws, just like they retroactively allowed "Collective Bargaining Clauses" to be written within the initial Greek Bonds. Isn't it great when you have the power to just simply rewrite the rules for your own benefit??

    What concerns me is the USA exposure and our own pending USA default. I am concerned that various laws will be written which forces various Pension Plans/401K's/etc. to buy some sort of USA bonds. Then, once everyone is forced to purchase them, the bonds will be devalued just like occurred in Greece.

  8. Doc,

    The whole CDS thing is a bit over my head still but by reading ZH daily its pretty clear to this guy there ain't no money pool. Matter of fact I see the whole Greek thing as just practice for the rest of the PIGS....... if they actually allowed a full trigger event, well you now the rest of the story!


    There was a time I used to believe justice was blind, it really wasn't justice that was blind....... it was ME!

  9. Speaking of gas did you pick up on just how many refineries are going to close due to EPA regulations in the commentary by Mr. Comiskey. That's gonna leave a mark!!!!

  10. catch 22 with way the fed covers the ponzi on them......just kick it down the can