Bloomberg reveals details (HERE) of what looks like a long-dated, cross-currency, off-market, non-transparent quadruple-hyphenated swap deal between Greece and Goldman done years ago. Pick a historical exchange rate for a currency swap and you can apparently make several billion in outstanding debt disappear. I have heard rumblings about this deal before.
Markets are perky this morning, as they have been after almost every big decline in the last few years. Shorting may not be unpatriotic but it has been unprofitable except over really short horizons and in very targeted situations. As I mentioned the other day, Friday’s unemployment data is widely expected to be positive (for the nth month in a row) and that may keep the bears from over-reaching. For moi, as spring comes to San Diego, there is more to do than watch markets closely