|The Morgue & The Squid Within 24 |
Hours of Italian or Spanish Default
This is why Quantitative Easing will continue To Infinity....AND BEYOND!!!
Without it, Europe will default, and the megabanks will be VAPORIZED over derivative losses.
JPMorgan Chase & Co. (JPM) and Goldman Sachs Group Inc. (GS), among the world’s biggest traders of credit derivatives, disclosed to shareholders that they have sold protection on more than $5 trillion of debt globally.
Just don’t ask them how much of that was issued by Greece, Italy, Ireland, Portugal and Spain, known as the GIIPS.
As concerns mount that those countries may not be creditworthy, investors are being kept in the dark about how much risk U.S. banks face from a default. Firms including Goldman Sachs and JPMorgan don’t provide a full picture of potential losses and gains in such a scenario, giving only net numbers or excluding some derivatives altogether.
Oh, and since when are the PIIGS known as the GIIPS? Bloomberg is suddenly trying to end the MOPE!?!
As France has now joined the collapse party, and the UK and US are not far behind, The Doc prefers his own slightly more apropos acronym:
FUK US PIIGS