{"id":10905,"date":"2010-09-14T10:10:19","date_gmt":"2010-09-14T14:10:19","guid":{"rendered":"http:\/\/www.thedisciplinedinvestor.com\/blog\/?p=10905"},"modified":"2016-09-20T07:51:53","modified_gmt":"2016-09-20T11:51:53","slug":"cds-risk-for-piigs-why-diet-when-you-can-have-elastic-waistbands","status":"publish","type":"post","link":"https:\/\/thedisciplinedinvestor.com\/blog\/2010\/09\/14\/cds-risk-for-piigs-why-diet-when-you-can-have-elastic-waistbands\/","title":{"rendered":"CDS Risk for PIIGS &#8211; Why Diet When You Can Have Elastic Waistbands?"},"content":{"rendered":"<p style=\"text-align: left;\">The CDS risk to insure the sovereign debt of some of the most deficit troubled and debt burdened countries within the EuroZone ticked a tad lower recently. Greece actually started to come down as the Basel III measures appear to be less of a hurdle than initially thought. Regulators now believe that an extended time to get things in order will be the better course. Remember, it is always easier to plan a diet some time into the future. While the idea of the New Year diet may be on the mind, the reality only hits on<!--more--> January 2nd.<\/p>\n<p style=\"text-align: left;\">Banks should then be continuing their feast while wearing elastic waistbands until the day of reckoning comes. Pay me now or pay me later &#8211; the answer for government has always been to push out the inevitable&#8230; That is how we got into this predicament into the first place.<\/p>\n<p style=\"text-align: center;\">\n<p style=\"text-align: center;\"><a href=\"https:\/\/thedisciplinedinvestor.com\/blog\/wp-content\/uploads\/2010\/09\/PIGS-20100913-1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-10906\" title=\"PIGS 20100913\" src=\"https:\/\/thedisciplinedinvestor.com\/blog\/wp-content\/uploads\/2010\/09\/PIGS-20100913-1.jpg\" alt=\"\" width=\"586\" height=\"383\" \/><\/a><\/p>\n<p style=\"text-align: left;\">Portugal is one of the only &#8220;trouble&#8221; countries that has seen a tick up of CDS rates in the last few days.<\/p>\n<p style=\"text-align: center;\">\n<p style=\"text-align: center;\"><a href=\"https:\/\/thedisciplinedinvestor.com\/blog\/wp-content\/uploads\/2010\/09\/PIIS-20100913-1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-10907\" title=\"PIIS 20100913\" src=\"https:\/\/thedisciplinedinvestor.com\/blog\/wp-content\/uploads\/2010\/09\/PIIS-20100913-1.jpg\" alt=\"\" width=\"585\" height=\"382\" \/><\/a><\/p>\n<p style=\"text-align: left;\">The returns within the equity markets still reflect the concern that these countries will have a very tough time marrying austerity with growth. Even as Trichet today announced that there could be a <em>doubling <\/em>of growth over the next year for the zone (later we found out that he was speaking of France, Germany, Italy, the Netherlands and Spain ONLY), rhetoric does not spend.<\/p>\n<p style=\"text-align: left;\">We are highly skeptical of the EuroZone&#8217;s chance to return to growth. In fact, in our next Quarterly report to <a href=\"http:\/\/www.thedisciplinedinvestor.com\/blog\/mailbox\/tdi-investment-fund\/\"><strong>clients<\/strong><\/a>, we will have a detailed discussion about why we are short EuroZone equities and our forecast for the next few quarters.<\/p>\n<p style=\"text-align: center;\"><a href=\"https:\/\/thedisciplinedinvestor.com\/blog\/wp-content\/uploads\/2010\/09\/PIGS-YTD-20100913-1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-10908\" title=\"PIGS YTD 20100913\" src=\"https:\/\/thedisciplinedinvestor.com\/blog\/wp-content\/uploads\/2010\/09\/PIGS-YTD-20100913-1.jpg\" alt=\"\" width=\"585\" height=\"377\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The CDS risk to insure the sovereign debt of some of the most deficit troubled and debt burdened countries within the EuroZone ticked a tad lower recently. Greece actually started to come down as the Basel III measures appear to be less of a hurdle than initially thought. Regulators now believe that an extended time [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[5,12,21,42],"tags":[483,486],"class_list":["post-10905","post","type-post","status-publish","format-standard","hentry","category-economy","category-markets","category-short-ideas","category-stocks","tag-markets","tag-short-ideas","et-doesnt-have-format-content","et_post_format-et-post-format-standard"],"acf":[],"_links":{"self":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/posts\/10905","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/comments?post=10905"}],"version-history":[{"count":0,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/posts\/10905\/revisions"}],"wp:attachment":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/media?parent=10905"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/categories?post=10905"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/tags?post=10905"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}