Cyprus-Forum.com

[yialousa1971]

"Last Supper" aimed to eat Greece, organized by international speculators in the same Athens, especially in the Hotel Grande Bretagne.



The New York-based hedge fund Paulson & Co, the depicted (file photo) John Paulson, is among those who took part in the "Last Supper" of "Great Britain" by hedge funds, Greek menu bankruptcy According to yesterday's publication of the newspaper «Financial Times», the bank called Goldman Sachs hosted on January 28 in the famous luxury hotel in Athens 10 customers, including bankers, fund managers and analysts, hedge funds, on the future the Greek economy "and of course how to make money from it.

Among those present at the great feast, which included Greece with keen on hedge fund Paulson & Co, credit default swaps-CDS euro were two analysts notorious U.S. hedge fund Paulson & Co, which manages funds totaling 32 billion dollars and which has been reported in publications of the international financial press as one of the "speculators" played last with Greece through notorious credit default swaps-CDS (contracts to hedge the credit risk of bankruptcy) and the euro.

Financial WMD

As the publication features writing, "the hedge funds have reconstructed a well calculated game, which did not begin in January, but several months ago. "The Game" continues the newspaper, "began in 2009, when hedge funds bought heavily Greek CDS to protect against the Greek debt, whereas the markets will soon" wake up "and saw the problems between Greece and the debt, so would turn the market for CDS to protect against risks. The CDS were invented in the late '90s to the diffusion of credit risk, enabling third parties to buy and sell such derivatives, which are the known megaloependytis Warren Buffett had identified a few years' financial weapons of mass destruction.

Until recently, the publication continues, the cost of Greek CDS was very cheap, with very few to see the market the possibility of state failure. "Indeed, until the banking crisis of 2008, ten-year CDS protection from the Greek debt purchased by only 20 basis points, which gave 0.2% yield for the sum insured year.

Interesting to mention that hedge funds buying these CDS did not have the same bond to be concerned by possible Greek bankruptcy. It is a widespread practice called «naked CDS trading» (prohibited transaction CDS).

"The hedge funds bet that if the financial situation of the Greek Government as expected worse-then-owners of Greek government bonds worth around 300 billion dollars will be running desperately for protection or otherwise would look to sell.

The speculative game of hedge funds was not limited only to the Greek debt. According to another "insert" a publication of that newspaper managers hedge funds, at a meeting in London this week, they drew up a strategy against the euro, fearing that the games with Greece will cause more stringent regulations on trade with CDS.

This could be done by selling the euro against the dollar in foreign exchange or futures market, which enables the buyer to sell the euro at a fixed price. If the euro falls, then the buyer is in and it turns a profit.

Recalled that shortly before the newspaper Wall Street Tzernal "in front page (26-28/02) it refers to another" secret dinner, this time in Manhattan to bring together hedge funds, like Soros Fund Management (the famous George Soros), where katestronan similar strategy with Greek speculation from a CDS and the euro on the other. * *

http://www.enet.gr/?i=news.el.oikonomia&id=138556

Μυστικό δείπνο κερδοσκόπων με ορντέβρ... Ελλάδα
Του ΜΩΥΣΗ ΛΙΤΣΗ «Μυστικό δείπνο» με στόχο να «φάνε» την Ελλάδα οργάνωσε η διεθνής των κερδοσκόπων μέσα στην ίδια την Αθήνα, και μάλιστα στο ξενοδοχείο «Μεγάλη Βρεταννία».

Το εδρεύον στη Νέα Υόρκη hedge fund Paulson & Co, του εικονιζόμενου (φωτογραφία αρχείου) Τζον Πόλσον, συγκαταλέγεται μεταξύ αυτών που πήραν μέρος στο «μυστικό δείπνο» της «Μεγάλης Βρεταννίας» με... μενού την ελληνική χρεοκοπία
Σύμφωνα με χθεσινό δημοσίευμα της εφημερίδας «Financial Times», η γνωστή τράπεζα Goldman Sachs φιλοξένησε στις 28 Ιανουαρίου στο γνωστό πολυτελές ξενοδοχείο της Αθήνας 10 πελάτες της, στους οποίους περιλαμβάνονται τραπεζίτες, διαχειριστές κεφαλαίων και αναλυτές hedge funds, με θέμα το μέλλον της ελληνικής οικονομίας «και φυσικά το πώς θα βγάλουν λεφτά από αυτό».

Μεταξύ των συνδαιτυμόνων στο μεγάλο φαγοπότι, που περιελάμβανε Ελλάδα με ολίγη από... ευρώ, ήταν και δύο αναλυτές του περιβόητου αμερικανικού hedge fund Paulson & Co, το οποίο διαχειρίζεται κεφάλαια ύψους 32 δισ. δολαρίων και το οποίο έχει αναφερθεί σε δημοσιεύματα του διεθνούς οικονομικού Τύπου ως ένας από τους «κερδοσκόπους» που παίζουν τελευταία με την Ελλάδα μέσω των περιβόητων credit default swaps-CDS (συμβόλαια αντιστάθμισης πιστωτικού κινδύνου έναντι χρεοκοπίας) αλλά και το ευρώ.

Χρηματοοικονομικά όπλα μαζικής καταστροφής

Οπως χαρακτηριστικά γράφει το δημοσίευμα, «τα hedge funds έστησαν ένα καλά υπολογισμένο παιχνίδι, το οποίο δεν άρχισε τον Ιανουάριο αλλά πολλούς μήνες πριν». «Το παιχνίδι», συνεχίζει η εφημερίδα, «άρχισε το 2009, όταν hedge funds αγόρασαν μεγάλες ποσότητες ελληνικών CDS για προστασία έναντι του ελληνικού χρέους, εκτιμώντας ότι οι αγορές σύντομα θα "ξυπνούσαν" και θα έβλεπαν τα προβλήματα της Ελλάδας με το χρέος, οπότε θα στρέφονταν στην αγορά CDS για να προστατευθούν από τους κινδύνους». Τα CDS επινοήθηκαν στα τέλη του '90 με στόχο τη διάχυση του πιστωτικού κνδύνου, δίνοντας τη δυνατότητα σε τρίτους να αγοράζουν και να πωλούν αυτού του είδους τα παράγωγα, τα οποία ο γνωστός μεγαλοεπενδυτής Γουόρεν Μπάφετ τα είχε χαρακτηρίσει πριν από μερικά χρόνια «χρηματοοικονομικά όπλα μαζικής καταστροφής».

Μέχρι πρότινος, συνεχίζει το δημοσίευμα, το κόστος των ελληνικών CDS ήταν πολύ φθηνό, με πολύ λίγους να βλέπουν στην αγορά το ενδεχόμενο κρατικής χρεοκοπίας. «Πράγματι, μέχρι την τραπεζική κρίση του 2008, τα δεκαετή CDS για προστασία από το ελληνικό χρέος αγοράζονταν με μόλις 20 μονάδες βάσης, δηλαδή έδιναν απόδοση 0,2% για το ποσό που ασφαλίζονταν τον χρόνο».

Ενδιαφέρον παρουσιάζει η αναφορά ότι τα hedge funds που αγόραζαν τα εν λόγω CDS δεν κατείχαν το αντίστοιχο ομόλογο για να ανησυχήσουν από πιθανή ελληνική χρεοκοπία. Πρόκειται για μια ευρύτατα διαδεδομένη τακτική που αποκαλείται «naked CDS trading» (απαγορευμένη συναλλαγή CDS).

«Τα hedge funds στοιχημάτιζαν ότι αν η δημοσιονομική κατάσταση της ελληνικής κυβέρνησης χειροτέρευε -όπως περίμεναν- τότε οι κάτοχοι ελληνικών ομολόγων αξίας περί τα 300 δισ. δολάρια θα έτρεχαν απεγνωσμένα για προστασία ή ειδάλλως θα κοίταζαν να τα πουλήσουν».

Το κερδοσκοπικό παιχνίδι των hedge funds δεν περιορίστηκε μόνο στο ελληνικό χρέος. Σύμφωνα με άλλο «ένθετο» δημοσίευμα της ίδιας εφημερίδας, διαχειριστές hedge funds, σε σύσκεψη που έγινε στο Λονδίνο αυτή την εβδομάδα, κατέστρωσαν στρατηγική κατά του ευρώ, φοβούμενοι ότι τα παιχνίδια με την Ελλάδα θα προκαλέσουν αυστηρότερες ρυθμίσεις στις συναλλαγές με CDS.

«Αυτό θα μπορούσε να γίνει με την πώληση ευρώ έναντι του δολαρίου στην αγορά συναλλάγματος ή την προθεσμιακή αγορά, η οποία δίνει τη δυνατότητα στον αγοραστή να πουλήσει ευρώ σε μια συγκεκριμένη τιμή. Αν το ευρώ πέσει, τότε ο αγοραστής είναι μέσα και βγάζει κέρδος».

Υπενθυμίζεται ότι λίγο καιρό πριν η εφημερίδα «Γουόλ Στριτ Τζέρναλ» σε πρωτοσέλιδό της (26-28/02) είχε κάνει λόγο για έναν άλλο «μυστικό δείπνο», αυτή τη φορά στο Μανχάταν, στο οποίο μετείχαν hedge funds, όπως το Soros Fund Management (του γνωστού Τζορτζ Σόρος), όπου κατέστρωναν ανάλογη στρατηγική κερδοσκοπίας με ελληνικά CDS από τη μια και το ευρώ από την άλλη. *

[Oracle]

I don't understand any of this gambling stuff but sounds like these parasites belong in jail.

[yialousa1971]

I don't understand any of this gambling stuff but sounds like these parasites belong in jail.

Watch these, very informative.

[yialousa1971]

Webster G. Tarpley
TARPLEY.net
March 3, 2010

It has been evident for some time that the ongoing speculative attack on Greece, along with such other countries as Spain, Ireland, Portugal, and Italy, was not primarily a reflection of their economic fundamentals, nor yet a spontaneous movement of “the market,” but rather an orchestrated action of economic warfare. The dollar had been relentlessly falling through the late summer and autumn of 2009. It obviously occurred to various Anglo-American financiers that a diversionary attack on the euro, starting with some of the weaker Mediterranean or Southern European economies, would be an ideal means of relieving pressure on the battered US greenback. Since these degenerate elites are incapable of directly solving the problem of the dollar through increased production, full employment, and economic recovery, one of the few alternatives remaining to them is to create a situation in which the euro is collapsing faster, leaving the dollar as the beneficiary of some residual flight to quality or safe haven reflex.

This is what emerged during the first week of December with a speculative assault or bear raid against Greek and Spanish government bonds as well as the euro itself, accompanied by a scurrilous press campaign targeting the “PIIGS,” an acronym for the countries just named, coming from inside the bowels of Goldman Sachs. I have discussed this phenomenon several times over the last two to three weeks on my radio program on GCN.

Now comes concrete proof of this conspiracy in the form of a Feb. 8 “idea dinner,” held at the Manhattan townhouse of Monness, Crespi, Hardt & Co, a boutique investment bank. Among those present were SAC Capital Advisors, David Einhorn of Greenlight Capital (a veteran of the fatal assault on Lehman Brothers in the late summer of 2008), Donald Morgan of Brigade Capital, and, most tellingly, Soros Fund Management. The consensus that emerged that night over the filet mignon was that Greek government bonds were the weak flank of the euro, and that once a Greek debt crisis had been detonated, all outcomes would be bad for the euro. The assembled predators agreed that Greece was the first domino in Europe. Donald Morgan was adamant that the Greek contagion could soon infect all sovereign debt in the world, including national, state, municipal and all other forms of government debt. This would mean California, the UK, and the US itself, among many others. The details of this at dinner were revealed in the headline story of the Wall Street Journal on Friday, February 26, 2010. (See article)

Nor was this the only cabal in town intent on attacking the euro through the week Greek flank. The article cited suggests that GlobeOp Financial Services and Paulson & Co. are also piling on. The zombie banks were also heavily engaged. The article reported that Goldman Sachs, Bank of America-Merrill Lynch, and Barclays Bank of London were also assisting speculators in placing highly leveraged bearish bets against the euro. Note that these zombie banks are alive today because of US taxpayer money, in Barclay’s case through AIG.

It amounted to a deliberate attempt to create a large-scale world monetary crisis which would certainly bring with it the dreaded second wave of the current world economic depression. The creation of monetary chaos in Europe through the convulsive destruction of the euro under speculative attack would cripple commodity production in western Europe, severely undermining one of the dwindling areas of the world economy which are still functioning. The genocidal implications for humanity ought to be obvious, but the assembled hedge fund hyenas were not concerned with these consequences.

George Soros has been telling every media outlet that will listen that the euro is doomed to fall apart and break up over the short run. Soros even has a theory to deploy as part of his speculative attack. Soros argues that the fatal flaw or original Sin of the euro is that it was based on a common central bank among the participating countries, but lacked a common treasury and tax policy. This means that a country like Greece can no longer defend itself from a speculative attack on its bonds by the simple expedient of currency devaluation, since there is no more drachma, and the euro is controlled from Frankfurt, not Athens. British spokesmen are quick to point out that, even though the financial situation of London is far worse than that of Athens, the British government is already devaluing the pound through a downward dirty float.

Given Soros’s infamous track record, he must be taken seriously. In 1992, Soros became world famous through his attack on the European Rate Mechanism, which he executed by a highly leveraged speculative assault on the British pound, at the time one of the weaker members of the ERM. Soros’ speculative attack led to a pound devaluation and the ragged breakup of the ERM, and netted Soros £1 billion in profits. It was as if Soros had personally stolen a £20 note from every man, woman, and child in Britain. The speculative gains were no doubt gratifying, but the overriding political purpose of the assault was to sabotage that phase of European monetary policy.

The London Economist has gone out of its way to mock Spanish Prime Minister Zapatero’s remark that Spain was under international speculative attack. Press organs of the city of London and Wall Street have ridiculed the Greeks as a nation of paranoid conspiracy theorists. And yet, the revelations made so far are strong circumstantial evidence of pre-concert, as Lincoln would say. Even the US Department of Justice has been forced to send letters to the participants in the infamous “idea dinner,” warning them not to destroy any of their records and thus putting them on notice that they are under investigation. While we should not have any illusions about the prosecutorial zeal of Attorney General Eric Holder, who once represented the international financial bandit Marc Rich, this is at least a beginning. Spanish and Italian judges are noted for their independence, and one of or more them may wish to examine the activities of Soros, Goldman Sachs, and their hedge fund allies.

Greece does not need an austerity program, as the Greek labor movement has eloquently argued in the course of their successful and admirable general strike last week. Greece does not need a bailout from Germany, the sinister International Monetary Fund, or from anyone else. Least of all does Greece need to accept the advice of Austrian school or Chicago schools charlatans who recommend the catharsis of a deflationary crash that would destroy an entire generation through unemployment, poverty, and despair. Greece needs to defend itself with a 1% Tobin tax on all derivatives and other financial transactions. Greece should take the lead in outlawing credit default swaps, which amount to issuing insurance without meeting the capital requirements of being an insurance company. Greece needs to enforce EU and national antitrust laws. If Soros and his gang succeed in breaking up the euro, Greece should make the best of it by immediately imposing heavy-duty exchange controls and capital controls to protect the new drachma, on the model of Malaysia a dozen years ago. Greece should shut down domestic zombie banks and seize its central bank and use it to issue 0% credit for industrial and agricultural hard commodity production. If the Greeks made plain what they intend to do if they are forced to fall back on the drachma, the financiers who fear such an example would have another reason to relent.

Another obvious expedient is that of a bear squeeze or short squeeze. Soros, Goldman Sachs, and their gang of hedge fund allies have now used derivatives to establish short positions against Greek bonds and the euro, betting that these latter will go down. Political pressure is now being brought to bear on the European Central Bank and the Greek central bank to undertake an unannounced large-scale purchase of Greek bonds and euros in the forward market, causing the Wall Street predators to lose their bets, thus punishing them severely with extravagant losses. This is normal central bank practice, and it will be astounding if the Greeks do not execute such a maneuver very soon.

The world now faces a stark choice between two alternatives, with Wall Street forcing the issue. The first is that the zombie banks and hedge funds, having been saved and bailed out by national states and their taxpayers, will repay the favor by driving the national states and all forms of state, provincial, and local government into bankruptcy. This will be synonymous with the destruction of modern civilization itself. The second and preferred alternative is that the national states summon the political will to use the inherent powers of government to place the zombie banks, hedge funds, and related purveyors of derivatives into bankruptcy receivership and shut them down once and for all, relying in the future on nationalized central banks for the provision of credit. The second alternative would allow the preservation of modern civilization as we have known it. But in the meantime, the derivatives-based speculative attack on the southern flank of the euro has accelerated the arrival of the second wave of depression, which now appears likely to strike the world before the end of 2010.

http://tarpley.net/2010/03/04/financial-warfare-exposed-soros-goldman-sachs-hedge-funds-attack-greece-to-smash-euro/

[Acikgoz]

What would one call the consisent suppers aimed at the destruction of Turkish Cypriot rights on Cyprus by Greek Cypriot parasites - the belligerent lawyers, the church, modern day EOKA etc.. Working towards selfish goals by exerting pressure not on financial markets but political spheres. The huge GC lobby machine which works on shutting down anything and every thing that undermines our rights is no different in its mission - there is no consideration of the destruction of value and potential synergies.
Hedge funds and proprietary trading desks are out there for their own interests, the long term repercussions are not their consideration, the only value they see is THE BOTTOM LINE for THEIR positions.
If you believe the financial markets should operate within the parameters of responsibility for the social destruction they can cause then why not apply the same principles to the approach taken on Cyprus.
TCs are lobbied against holding international meetings in the North, we cannot play international football matches, and despite being in Europe we cannot trade freely (oh only with south Cyprus and only on certain products). The opening of borders in Turkey to GCs at the same time as opening North Cyprus to free trade with Europe is objected to. I cannot even use a Turkish Cypriot flag as an avatar on this site, which is no more offensive than the Cyprus flag for the injustices created.

[Me Ed]

What would one call the consisent suppers aimed at the destruction of Turkish Cypriot rights on Cyprus by Greek Cypriot parasites - the belligerent lawyers, the church, modern day EOKA etc.. Working towards selfish goals by exerting pressure not on financial markets but political spheres. The huge GC lobby machine which works on shutting down anything and every thing that undermines our rights is no different in its mission - there is no consideration of the destruction of value and potential synergies.
Hedge funds and proprietary trading desks are out there for their own interests, the long term repercussions are not their consideration, the only value they see is THE BOTTOM LINE for THEIR positions.
If you believe the financial markets should operate within the parameters of responsibility for the social destruction they can cause then why not apply the same principles to the approach taken on Cyprus.
TCs are lobbied against holding international meetings in the North, we cannot play international football matches, and despite being in Europe we cannot trade freely (oh only with south Cyprus and only on certain products). The opening of borders in Turkey to GCs at the same time as opening North Cyprus to free trade with Europe is objected to. I cannot even use a Turkish Cypriot flag as an avatar on this site, which is no more offensive than the Cyprus flag for the injustices created.

Its quite simple, if you can convince the world that your trade is not done on stolen property or assets and that the majority of your customers/consumers are not illegal settlers, then the so-called imbargos might just be lifted.

I for one want the TCs to prosper, but not off the back of displaced people, but off their own efforts.

[Acikgoz]

Mr Ed, I hear your argument and would conceed it as valid if applied uniformly between similar issues in the north and south, but the situation as it stands does not. The lands of TCs in the south are used to produce goods, their homes and workplaces are utilised, their resources expended with the only beneficiary GCs.

The GC farmer that works our land in the south - he trades freely the produce from our land.

You also fail to incorporate the non-economic constraints such as sports, freedom of travel from an airport in the north etc. These have no bearing on the assets or resources of displaced people.

I am therefore happy to hear your non-racist positive desire (woefully lacking on this forum), yet remain questioning the moral high ground GCs put forward to justify the embargoes. Their PERSONAL BOTTOM LINE is the only one that counts, and that is not simply monetary but moreso political nationalistic pride.

[Me Ed]

Mr Ed, I hear your argument and would conceed it as valid if applied uniformly between similar issues in the north and south, but the situation as it stands does not. The lands of TCs in the south are used to produce goods, their homes and workplaces are utilised, their resources expended with the only beneficiary GCs.

The GC farmer that works our land in the south - he trades freely the produce from our land.

You also fail to incorporate the non-economic constraints such as sports, freedom of travel from an airport in the north etc. These have no bearing on the assets or resources of displaced people.

I am therefore happy to hear your non-racist positive desire (woefully lacking on this forum), yet remain questioning the moral high ground GCs put forward to justify the embargoes. Their PERSONAL BOTTOM LINE is the only one that counts, and that is not simply monetary but moreso political nationalistic pride.

In simple terms, all of the above, which you have mentioned, without exception is the sole perogative of the Government of the RoC and not Turkey.

[DT.]

I recently read a fantastic book on Paulson called "the greatest trade ever"

This is the man that saw the opportunity with an Italian associate regarding a credit default against the larger US institutions. The guy was a medium sized M&A specialist fund manager until this came along and made 20billion over a couple of weeks by betting on the rising CDS's. By this he had accelerated the decline of most of these institutions since they were the ones having to cover these "insurance payouts" from all the defaulting institutions.

Personally we were getting the recommendations for Greece as well over the past 10-12 months and find it very plausible that Paulson did a repeat of what happened in the US through Greece.

The CDS is basically an insurance one takes against an institution or country they have an interest in (you don't have to be exposed to that institution or country to be able to buy this insurance.

Once the default signs become clearer, these CDS's will become more expensive thus destroying the creditworthiness of the institution. In this case making it very expensive for Greece to borrow money.

[Acikgoz]

Financial bets can also work in reverse. Another good finance book - When Genius Failed. Long Term Capital is the poster child for "leverage can seriously damage your health."
No one cried for the thousands of the smartest traders on the street that lost everything.

Bury the politically expedient bankers, hoorah, don't blame the poor financial management - excessive spending and weak tax collection - nor the lack of regulation.
Pass the buck politics, regulators knew the risks before the blow up, nothing done except take the tax receipts from the banks, we are 2 yrs on from similar blow-ups in the US, still nothing done to regulate.