An interesting turn of events as Zero Hedge describes it best…
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So what’s to stop Greece from just defaulting and paying nothing on the dollar should the lawsuit go ahead?
While I don’t disagree and actually think a complete default may be the best thing for everyone involved. I’m sure Greece is freaking out about having to leave the Euro as there’s nothing stopping bondholders of Greek corporations from demanding payments still be made in Euros.
Can’t see how people didn’t see this whole thing coming. If you’re a major fund that holds completely hedged debt on any member of the PIIGS, it’s your fiduciary duty to sue the pants off of anyone trying to change the rules, whether it is the sovereign nations, or the issuers of the CDS.
I think at the end of the day, Greece is nothing more than a way for the parties involved to set a precedent for larger upcoming problems.