Friday, March 2, 2012

A Greek Tragedy After All...

Dang! I spoke too soon yesterday (should've known better)... Apparently the Determinations Committee decided Thursday that a "credit event", triggering CDS payments on Greek debt, did not occur (although they could come back later and reverse that decision)...

So let's get this straight; Greece gets to pay bondholders 50% of what they originally borrowed, and those who bought protection against Greece paying bondholders less than what they borrowed will not get what they paid for...

It's like buying life insurance that stipulates, even long after purchased, that it won't pay if you commit suicide... Your murderer (hired by the insurer) then wipes clean his weapon and presses it onto your dead finger tips, making it appear as if you did yourself in...

That, alas, is precisely what's going on here - and it is indeed a tragedy...

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