[L,TOWM]

There was specualtion on Bloomberg yesterday that some of the hedge funds holding credit default swaps on the private label debt may be blocking a deal. If there is any truth to that, it would be an astonishing example of myopia by people that should know better.

[Oldeconomybuyer]

The Greeks could just do what Obama did to GM — tell the bondholders to pound sand and give what’s left to the unions. It’s the Marxist way!

[The Old Commander]

Why? If the CDS are valid, they will compensate the bond holder %100. Not agreeing to a haircut is the obvious choice for the holders of CDS if they could be certain that the issuers of the CDS have sufficient capital to make the payments. That is the question that is preventing an agreement.