Putting the question of evil sovereign CDS speculators to rest

A fine rant from Zero Hedge about blaming speculation for the ongoing debt crisis in Greece when the real problem is governments hiding debt, aided and abetted by investment banks.

Dear Mr. Bernanke, dear idiots at the SEC (to paraphrase an extremely observant Harry Markopolos), and dear everyone else who is just an empty chatterbox and a mouthpiece for other conflicted interests, who claim baselessly that it is all the CDS traders’ fault that Greece is about to be flushed down the toilet. We present to you the ratio of cash to synthetic (CDS) exposure. As Bloomberg points out, the “maximum amount on the line if 10 government defaulted, $108 billion, is 0.98% of their combined $11 trillion in sovereign debt.” So these less than 1% marginal players are now blamed for the end of civilization? How about blaming sellers of cash bonds?

Or, here’s an idea, how about actually looking at the root cause, like for example governments, who with the assistance of Goldman Sachs, have lied for a decade about the true state of their finances, and have misrepresented on sovereign prospectuses all their economic exposure for years, which was subsequently signed off by countless auditors and lawyers. The corruption goes to the very top, and the SEC idiots are now investigating CDS traders? There will be no end to the insanity and lunacy, until there is a revolution in this country, or until CNBC allows a rational and objective person to talk on its network, whichever comes first.

I vote for revolution. As do most of those in their always wonderful comments section. Here’s a few:

– My vote is revolution. Television networks are only important if you watch them and buy the trinkets hawked by their advertisers.

– Can I buy futures on the revolution?

– Allowing a rational and objective person on CNBC is an “extinction-level” event. And those happen about once every 65 million years. On average.

– Americans, for something completely novel, how about forming a government.

– Rule #1: Governments can do no wrong.

Rule #2: If governments do wrong, find a scapegoat. A nice speculator will do nicely.

Who gets blamed for inflation in oil prices? The big oil “windfall profits” of oil co’s. But it is not the FED’s fault for printing too many FRN$, no, no, no.

Who gets blamed for the financial crisis? The derivatives dept at AIG–they get taxed 100% of their bonuses.

But the USgovt is not at fault for repealing Glass-Stegall, no, no, no.

Get with the program, comrade!

Why is it that I, a hardcore leftie, find the wondrous rants and comments at ZH vastly more informative and useful than anything the hard left is doing? Or would be doing, that is, if they weren’t all snoozing through this crisis of capitalism. the one they say they’ve waited for decades to occur.

It’s inexplicable, that’s what it is. But I’m sure glad ZH is here. They’ve drawn real blood from the exploiter class.

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