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There's nothing wrong with CDS, in general, assuming the product is traded on the exchange and adequately collateralized. Sov CDS is an entirely different matter. It's a sh1t product that I, personally, wouldn't touch with a 10ft pole. However, the reasons for that are different.

It sucks to be Hildebrand right about now...

Depends on the name, but at the mom it's roughly as follows: 1y 1.77% 2y 2.00% 5y 2.75% 10y 3.44%

Sov CDS is an OTC derivative... It's regulated, to a degree, but differently and certainly not by the SEC, to the best of my knowledge.

It's a complicated question and I could wax poetic on the subject, if you like. The short answer is that I think most mkt participants probably use 1y FF OIS rate these days.

What you want to know?

Nah, it's all about Greece still... Or rather about the funding that the US money mkt funds have been providing the European banks with and which might dry up if Greece goes pear-shaped.

Well, listen, I am only in favor of EU taxes if there's an EU and you're part of it. If the Greek people and the Greek govt want to deal with their taxation issues independently (or not, as the case may be), let them do so outside of the context of the Eurozone/EMU. My point is something that...

Who's the arbiter of what occupation is deemed useful and productive?

He's right, although a bit off the mark. What happens with all this "voluntary" rollover malarkey matters because of the ratings agencies. And I don't mean that it matters because they'll downgrade Greece to full default, either, so I agree with the Danske guy there. However, the RAs have...

Well, that's exactly my point, achilles... All of this is about politics (and not economics), which means that the "politics aside" qualifier renders the discussion rather pointless. As to TARP/TALF etc, surely there's a difference between making an O/N loan to a European bank with some...

Well, why "w/o representation"? And surely you'd agree that tax collection in Greece is an issue that needs to be resolved somehow? As to referenda, I don't know... It's entirely possible that the Eurozone concept, admirable though it might have been, was introduced much too early.

Well, some of the things you say make sense. In fact, that's sort of what the French want and what the Germans were refusing to even consider until recently. However, are you seriously telling me that you, as a US taxpayer, would be happy to have the Fed assume the entire Greek sovereign...

Well, it's not quite that simple...

That was a rhetorical question...

Yes, this might be exactly what the Greeks deserve, but what about the Irish and the Spanish? Their issues are different and they have been doing all the right things.

Yes, I know what it is, but I have never associated it with the abbreviation SGP. At any rate, SGP, as it exists now, is for sissies. Ultimately, the solution is a single centralized fiscal and tax authority (briefly mentioned by Trichet in one of his speeches).

Not sure what your SGP actually stands for, but the answer is yes, I imagine.

Well, there's the question of timing, innit? Also, ultimately everyone in the EMU does realize that the ccy union is only viable with an orderly system of fiscal transfers, like they have in the US.

Huh? I bot all my bonds at par and that's the price I will demand. What you're suggesting therefore is a one-off full bailout of all the periph sovereigns (i.e., for example, you want to forgive the currently outstanding EUR 300bn worth of Greek debt)? Or did I misunderstand? Is this...