http://online.wsj.com/article/SB10001424052748704473104576293120133247298.html?mod=googlenews_wsj
Similar to how the banks were blaming short sellers for the collapse of their stock price in Sep 2008 (not that the banks were holding 100s of billions in worthless mortgages and concealing it from investors), the EU looks like it wants to blow up the CDS marketplace – where people go to buy insurance against their Greek bonds becoming worthless. Without CDS protection, the government bond market for less credit worthy countries will vaporize.
The saying “Don’t shoot the messenger” is important. Tyrants often evolve to the point where they will kill the bearer of bad news (literally or figuratively). The result is that nobody will tell the king the truth until the Goths have stormed the castle.
Yes, I did just call the EU tyrants.
Well, of course the Brussels Reich is tyranny. What we have seen in the US over my adult lifetime (half a century) is the gradual replacement of a republican system by government by a Byzantine bureaucracy. We have seen that much more rapidly and completely in the EU.
For a continuing discussion of the wretched EU, my favorite blog is http://eureferendum.blogspot.com/