Ok, one under god. It looks as though we are getting closer, although there are still some parts that confuse you.

>>so the bankers take a haircut and the bond traders get the advantage..by 50% reduction<<

The key here is the difference between the traders - who simply trade - and the bondholders themselves, who tend to be banks, or institutions such as pension funds.

The traders are like any other. They handle goods on behalf of sellers and buyers, much like a retail shop. They will match buyers and sellers, who between them agree on a price. The important part being, that the price at which the bond changing hands is completely separated from the original event, when the bond was issued.

Take a closer look at the example you quote:

"The rate on the Greek bond maturing in October 2022 climbed 116 basis points, or 1.16 percentage point,..!,,*to 26.63 percent"

Let's say for a moment that the redemption value of the bond was originally a million Euros, and had a coupon of 4%. The market considers them risky - will the government be able to pay back a million Euros in 2022? They assess the risk, and decide that they would need 26.63% interest, in order to balance the risk that they are taking. So the price that someone would be prepared to pay, for a piece of paper with a face value of a million Euros and a coupon yielding 40,000 Euros per year, is...

150,206 Euros

That's the price that the new bondholder would pay, having assessed all the risks.

Of course, what might happen is that the government unilaterally decides that they will only pay back 500,000 Euros in 2022, and therefore only 20,000 Euros p.a. in interest. That will send the traders back to their overheated calculators to re-price the same bond, yet again. Is it more, or less likely that the government will be able to pay back half a million in 2022...?

Meanwhile...

>>you defend the treasonous a bailout...or colluded theft [odious debt..thus criminal colluded treason]<<

Who is being dudded here, exactly?

peri/quote..""Let's say for a moment that the redemption value
of the bond was originally a million Euros,""

no lets talk in real numbers
IE in the BILLIONS...[total so far..!
of over 100..IF the halving takes place
or actually over 200 billion as it stands today

""and had a coupon of 4%.""

again my brother lets get real
the NEW bailout will be AT 26%
[to pay off half of the previous bonds
ALSO..*NOT AT4%]

as the rate has been slowly rising..over the lasst few years
HECK your the expeert...WHAT real NUMBERS?

i sem to recall the last june payoff of bonds
[were they 4%?]

these bands were paid off at what new bond rate
WHAT WAS THE YEILD on the old and the new bonds
that 'payed the cheap money out?"

leaving the people with 26%
TODAY...!

as..""The market considers them risky""

lol...better to hold bonded intrest at 4%,...or 26%?

""will the government be able to pay back a million Euros in 2022?""
of course...WHATEVER it takes..ITS A SURE BET

the whole eu is banking on it
SO WHY 26%..intrest..thats theft money
its assured to be opaid off/back..SO WHY 26%...except to break the greeks back to peons

the bankers..""They
assess the risk,..""
and reap the windfall
and the 100 bailout..cleanup all round
bonus for bankers all round i rekon

but let continue exposing your
and your mates colluded duplicity
to defraud tax cash from govt..by civil crime called adious debt

ignoreing your self rightious..""and decide
that they would need 26.63% interest,""

bah
germany is going to go bust paying it of
if it defaults..then the neo cons scam clean's up

SO WHERE WILL THE BOTTUM LINE END?

""in order to balance the risk..lol
that they are taking.""

faking..

"""So the price that someone would be prepared to pay""

only a fool
doing as their backroom advisers tell them to do
ie bailout their masters
and impoverish the worlds peons

for what?

"",for a piece of paper with a face value
of a million Euros""

no mate 100 BILLION..
or TWO HUNDRED BILLION
then italy ONE TRILLION
then portugall..espana..ireland..france germany
then the arabs/the chinese..AS MANY SUKKERS YOU CAN CONvince to underwrite capotal excess

""and a coupon yielding 40,000 Euros per year,
is...

150,206 Euros"""

mate your full of it
globally its 3 quadrillion
in paper promises..govt gave to the money changers

""That's the price that the new bondholder would pay,
having assessed all the risks.""

my figure or yours
yours is 150 thousand
heck if thats true WHY A BAILOUT
its BILLIONS ol boy

TRILLIONS in total
just for the eu..[peew]

but your insanity knows no bounds>>""Of course, what might happen is that the government unilaterally decides that they will only pay back 500,000 Euros in 2022,""

ok thats a great plan
GOT ANY PROOF THEY WILL TAKE THE OFFER?

""and therefore only 20,000 Euros p.a. in interest""

mate who is the fool here?

""That will send the traders back to their overheated calculators to re-price the same bond, yet again...Is it more, or less likely that the government will be able to pay back half a million in 2022...?""

half a million..in 21 years
sign the offer..before the nutcase realises what he is doing

i accept your offer
on behlf of your masters

""Meanwhile...

>>you defend the treasonous a bailout...or colluded theft [odious debt..thus criminal colluded treason]<<

Who is being dudded here, exactly
the workers..FOLLOW THE MONEY TRAIL

note the intrst rate..watch who pays
and who collects again

It is crystal clear from your last two posts, one under god, that you have not bothered to do your homework on the mechanics of bond trading. You are so keen to blame the evil banksters, that you choose to ignore the simplest explanation, and instead search for a conspiracy.

There isn't one.

The extent of your misunderstanding can be encapsulated in just one line from your post:

>>leaving the people with 26%<<

If by "the people", you mean ordinary Greek folk who borrow money for their mortgage, you will be pleased to know that their interest rate is linked to the Euribor rate

http://www.hsbc.gr/1/2/en/hsbc-advance/products/mortgage-loans

Which, as you know, has just been reduced again, and stands at 1.25%

http://www.reuters.com/article/2011/11/04/markets-euribor-idUSEAP50P40020111104

The Greek people will probably suffer from mass unemployment, reduced income, and a shrinking economy for a few years, regardless of the bond market. But they will "enjoy" interest rates considerably lower than ours, while they do so.

you like to deliberatly distort what i say
and hey thats your right

but look at it like this]
italy bond intrest rate is curently arround..6%
german bond rate curently arround 2%

greece currently 26%
so greec is taking out new bonds at ursurous [oudioud terms]rates
[insane rates]..and to take out these thieves rates..to pay off previous bonds..at much lower rates

so let's hear from you how the greece bond rate..has gone through time
[i watched a graff the other day on abc..that showed its only recently spiked like a rocket]

so look at it this way..better to 'default a 4% bond
or a 26%..bond...[i suspect much the same occured to the people of argentina]...yet in the end they repaid every penny

which is easy to do on a 4% loan
but much harder on a 26%..loan
repaid according to its origonal terms

the people of greece are being shafted..into a contract that doubles their debt every 4 years..!

to repay bond rates
that would take 25 years to double..[if at 4%]

CLEARLY..its better to face defaul;ting the 4%..ones they got now
than default even half at 26%...[that rate is insane..

any politition signing into that
is doing treason..[ie greating murderous/odious debt]..
thus crimminal collusions..not enforcable under law..

and worse made under theat
via sar-cossy and that nuke scientist runing the natzies..

as usual the govt is seerving the corperate intrsts
impoverishing its people

high treason
live with it

I think I now understand why you are having so much difficulty with this concept, one under god.

>>greece currently 26%
so greec is taking out new bonds at ursurous [oudioud terms]rates<<

Bonds aren't "taken out". They are offered for sale. No-one is forced to buy them.

>>so look at it this way..better to 'default a 4% bond
or a 26%..bond..<<

Let's say we have a 1 million euro bond, issued with a 4% coupon. It now changes hands for $154,000, which gives an interest rate of 26%. Asking "which is better to default on" is therefore a nonsense question - you are defaulting on the principal, not the interest rate.

Clearer now?

>>you like to deliberatly distort what i say
and hey thats your right<<

So which part did I distort this time?