http://blogs.telegraph.co.uk/finance/jeremywarner/100004157/how-the-ecb-has-contributed-to-the-greek-debt-crisis/
Inquiring minds want to know,
The big question is: What will they do about it, when they find out that "The Profiteers" (The Banks) once again rigged the bet to ensure the fall.
Regulators on both sides of the Atlantic have announced they are investigating trades in the euro and the market in sovereign credit default swaps (CDS), while on a flying visit to London, Michel Barnier, the European internal markets commissioner, has this week promised a regulatory crackdown on the CDS market.
At the very least M. Barnier wants to know who’s buying and for what purpose. He then wants the supposed speculators publicly to account for their actions. European Commission officials are meeting with bankers today (Thursday, 4 March) to decide what shape this crack down should take. If they are going to bail-out Greece, they want to know who stands to benefit and who to lose.
The first principle of regulatory interference in markets must be that there is evidence of public interest damage. In my view, the CDS market passes this test, and indeed always has done, only as with so much else, regulators were so busy with the trivia that they failed to notice the really important stuff. A CDS is a form of insurance, in that it insures against the risk of default, and yet it disobeys two of the most fundamental rules governing insurance.
The first is that the insured must own the assets being underwritten, this for the obvious reason that if he doesn’t the existence of the insurance provides an incentive to induce a loss
