FROM EIR DAILY ALERT

A Default Is a Default Is... Not a Default!

March 7, 2019 (EIRNS)—The emperor has no clothes. How do you prevent a default, or a series of defaults, from bringing down the system? Simple: You declare that a default is not a default.

Bloomberg reports that, the

“International Swaps and Derivatives Association is proposing that failing to make a bond payment wouldn’t trigger a CDS [credit default swap] payout if the reason for default wasn’t tied to some kind of financial stress. The plan earned initial backing from titans including Goldman Sachs Group Inc., JPMorgan Chase & Co., Apollo Global Management and Ares Management Corp.”

The next step is to declare a system collapse not a system collapse, when it occurs. After all, who says snow is white?