Greece Was Betting Against Itself

Aside from the fact that they exist in the unregulated dark realm of the derivative securities market, we have just been presented with a really good example of what is wrong with the credit default swap as an instrument of constructive benefit to society.

In this way, the use of the credit default swap was analogous to taking out life insurance on one’s suicidal spouse, then leaving loaded guns all over the house.

The Biggest Greek CDS Speculator Has Been Uncovered – Culprit Is… Greek State-Controlled Hellenic Post Bank! | zero hedge.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.