Greece avoids default, but ISDA declares them in default

http://www.forbes.com/sites/afontevecchia/2012/03/09/on-greece-defaults-and-the-future-of-derivatives/

UPDATE 2 (2:48 p.m.): ISDA has now declared that Greece’s restructuring does represent a default, meaning credit default swaps will trigger. Read the statement here.

The ISDA is the International Swaps and Derivatives Association.

Last night's bond agreement, where bondholders must take a 74% haircut, was an attempt to default without really defaulting. But the ISDA says otherwise, and that is enough to make it an "event." In other words, the insurance companies (banks) will have to pay for the losses. I don't know which big banks have insured these bonds as Credit Default Swaps, but I would not be caught holding stock in those banks.

This ruling should make them nervous. Watch for another AIG-style financial crisis, followed by another bailout. This time, though, the consequences could be far greater than in 2008.

Coming at the time of the Divine Deliverance Prayer Campaign makes this a significant event. It is comparable to the 1600-point free fall in the stock market 11 years ago, after we took captive the Prince of Usury on March 9, 2001.