http://www.zerohedge.com/article/two-hedge-funds-one-bank-there-concerted-effort-destroy-greece
Zerohedge reports on suspicions that hedge funds deliberately attacked Greece, forcing the nation to pay higher interest rates and precipitating its (near) default:
"In the pre-math of the Greek collapse, conspiracy theories are swirling about who keeps blowing Greek CDS spreads wider. The answer, so far completely unconfirmed, is that a large US investment bank (we "wonder" just which US investment bank dominates the sovereign CDS market), and two major hedge funds are behind the CDS "attacks" on Greece, Portugal and Spain. According to Jean Quatremer, and his Coulisses de Bruxelles, UE blog, the plan involves blowing spreads to record levels, and is prompted by the hedge funds' anger at not having been allocated substantial amount of the recent €8 billion GGB issue, in order to lock in profits from their CDS long exposure."
This is not the first time I've read of orchestrated attacks. Bear Stearns was supposedly attacked in a similar manner.
http://www.rollingstone.com/politics/story/30481512/wall_streets_naked_swindle/print
William Buiter warned last year that credit default swaps held on a nation's debt (insurance on bonds issued by a nation) might make it profitable to deliberately sabotage the nation if the credit default swaps paid out more than the interest on the bonds.
http://blogs.ft.com/maverecon/2009/05/derivatives-and-attempted-state-capture-in-kazakhstan/
The implications are that financial institutions or entities may find it profitable to deliberately sabotage nations or corporations, causing them to default on their debt or simply cause them to pay out much more in interest on their bonds and insurance.
This is a kind of robbery and extortion that should be stopped. These financial institutions are wrecking havoc around the globe!
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