While President Holland of France was sharing a televised soccer game with fellow world leaders in the camp David G8 meeting the Money Masters took up the challenge he presented them with when he told the French he would not bail out the big financial institutions. So now he is left with two choices. Start the collapse of the entire money system or Nationalise the second biggest mortgage bank of France.
I wouldn’t like to be in his shoes because either he triggers the collapse of the 1.2 Quadrillion in Derivatives bubble or there is going to be a lot of Guillotine sharpening going on in France and that guilotine has his name on it.
Name the plunging bond below:
If you said some sovereign or corporate issue based out of Spain, Italy, Ireland, Portugal, or even Greece you would be close… but no cigar. No – the bond in question is an issue of Caisse Centrale du Credit Immobilier de France (3CIF), which together with its sister entity CIF Euromortgage (CIFE), is a 100% subsidiary of Credit Immobilier de France Development (CIFD), which as Fitch describes it, is a French “housing loans specialist, with business exclusively directed to France.” CIFD is in turn owned by Procivis Group, which just happens to be France’s second largest full-service real estate group.
In other words, CIFD, together with its subsidiaries 3CIF and CIFE represent a critical glance into the functioning (or lack thereof) of the French mortgage market. The various CIF mortgage entities are related as per the following Org Chart: