Thursday, June 23, 2011

Confirming the obvious

"In years past, when financial crises in Argentina and Russia left those countries unable to make good on their government debts, they simply defaulted. But this time around, swaps and other sorts of contracts have become so common and so intertwined in the financial markets that there are fears among regulators and financial players about how a Greek default would play out among derivatives holders".

Thus speaks the New York Times, confirming that which we knew already ... that anyone who asserts with confidence that "contagion" is not a risk is talking out of their rear end.