Originally Posted by mike762
Originally Posted by sactoller
God I hope they let it fail!


Be careful what you wish for, as four of our largest banks hold multi trillions worth of CDS contracts. If they-Greece-does default, and I mean a formal hard default, then there's no way that the ISDA can rule that a default didn't happen. If that's the case you have a reprise of AIG, only on a much grander scale.

As to it's effect on gold, the question you have to ask is what is your counterparty risk? If the ISDA rules that Greece's default isn't really a default, or that some of the bonds issued under English Law have seniority over those issued under Greek Law, then you have a defacto abrogation of bond holder's rights, and ALL paper is questionable, no matter the issuer-including US Treasury paper.

Gold has no counterparty-IF you hold physical in possession.

There is nothing safer or better for preserving wealth, especially in these times of moving definitions and thievery being done under the auspices of sovereign central banks and their commercial offspring.

it's also interesting to note as to who controls the ISDA. The major money center banks. Do you really think they will call a default, a default when they themselves are subject to so much counter party risk? You can count a LOT of whatever on the head of the pin. The semantics and word splitting in the financial media is really the worst i have ever seen it as to so many things. It will be interesting to see a default reworded so it really isn't a default.

THE BIRTH PLACE OF GERONIMO