NEW BLOG POST UP: June 13 2011, The Derivatives Pressure Cooker

NEW BLOG POST UP: June 13 2011, The Derivatives Pressure Cooker

That's right, out of 20 Primary Dealers, 12 are.... foreign. And incidentally, the reason why we added the (if any ) above, is that since this cash is fungible between on and off-shore operations, what happened is that the $600 billion in cash was promptly repatriated and used by domestic branches of foreign banks to fill undercapitalization voids left by exposure to insolvent European PIIGS and for all other bankruptcy-related capital needs. And one wonders why suddenly German banks are so willing to take haircuts on Greek bonds: it is simply because courtesy of their US based branches which have been getting the bulk of the Fed's dollars in 1 and 0 format, they suddenly find themselves willing and ready to face the mark to market on Greek debt from par to 50 cents on the dollar. And not only Greek, but all other PIIGS, which will inevitably happen once Greece goes bankru...

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Help us out! Tweet us a link to a #greennews st... 13 Jun '11, 2pm

Cool Green Morning: Monday, June 13 Written by Nicole Levins Published on June 13th, 2011 | Discuss This Article Start you...

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