Euro Crisis

I think they were going to use this to short Euro in near term . The CDS. Refere to Moola blog it provide some clue on how the big boys going to short Euro.

Zero Hedge highlighted this clip: "Goldman Can Create Shorts Faster Than Europe Can Print Money"
Look at what Soros did to the Bank of England in 1992 - he went after them, they had a finite amount of dollars, he was selling sterling and taking the dollars, and they were buying the sterling and selling the dollars to defend the peg. All he had to do was sell more than they had and he wins. But he needed real money to do that. Today you can break a country, you don't need money you just need synthetic euroshorts or CDS. A trillion dollar bailout: Goldman can create 10 trillion of euroshorts. So it just dominates whatever governments can do. So basically Goldman can create shorts faster than Europe can create money."

What is CDS?
A credit default swap (CDS) is a swap contract in which the protection buyer of the CDS makes a series of payments to the protection seller and, in exchange, receives a payoff if a credit instrument (typically a bond or loan) goes into default.


In its simplest form, a credit default swap is a bilateral contract between the buyer and seller of protection. The CDS will refer to a specified bond obligation of a “reference entity”, usually a corporation or government. The reference entity is not a party to the contract. The protection buyer makes quarterly premium payments—the “spread”—to the protection seller. If the reference entity defaults, the protection seller pays the buyer the par value of the bond in exchange for physical delivery of the bond, although settlement may also be by cash or auction.[1][2] A default is referred to as a 'Credit Event' and include such events as failure to pay, restructuring and bankruptcy.[2] Most CDS’s are in the $10–$20 million range with maturities between one and 10 years.[3]