Tim Worstall explains a key difference between the CDS market in 2008 and now.
Everyone who is going to lose money on a CDS has already lost money on that CDS. This simply will not work out like AIG Financial Products. . . . We know who will lose for we can go and count who has already handed over those margin calls. In fact, we know who will lose because we can work out who has already lost. Just look at the cash balances.
For another interesting article related to Greece, see "For Many Greeks, Here's What Austerity Will Look Like".
If you think you’ve got it tough living in America, just be glad you’re not going to be in Greece as that nation begins to confront the true reality of austerity. . . .
From a 15 percent cut in public wages to cigarette and alcohol taxes to Social Security reductions and means testing, the Greek measures will instill pain, necessary though it may be, for years to come.