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.