Jean-Claude Trichet, proven the liar this blog always maintained he is!

I will not quote from my many postings of the past on devious dealings of Jean-Claude Trichet, former head of the ECB, but merely quote a passage from what the Acting Man Blog, linked here, has to say on that object today:

Finally investors must come to terms with the fact that when a politician or high-ranking bureaucrat opens his mouth, chances are very good that a blatant lie or grave misjudgment of the situation is about to cross his lips. Here is what the French career bureaucrat and former chief of the ECB, Jean-Claude Trichet, said in late July 2011:

“Speculating on Greece defaulting is a sure way to lose money, European Central Bank President Jean-Claude Trichet was quoted as saying in remarks released on Wednesday.

"Such a speculation would be a sure-fire way of losing money given the decisions taken last Thursday," Trichet told French magazine Le Point, according to a transcript of the interview provided by the ECB.”

And below is the outcome of that speculation that was such a 'certain way to lose money' according to Trichet – it was one of the best trades of the century, in all likelihood it is among the top trades in all of history. 5-year CDS on Greece were once available at a premium of a mere 44 basis points (this was back in 2007). Last week, they went out at 26,000 basis points, an increase of 59,000% in five years. The return since Trichet made the remark quoted above was 'only' 1,000%. As sure fire ways of losing money go, we could think of a few other trades, like buying Greek bonds 'because the EU will never allow Greece to default'