Over on Credit Slips, we're discussing the CDS mess in the Greek default. No one over there thinks we've seen the end or even the beginning of the end. More like the end of the beginning. I'm sticking to my position that anyone who was relying on a CDS to cover his position was willfully ignorant and deserves the haircut he'll be getting. I've added that anyone who really wanted insurance for his investment should have been able to buy something from somewhere, and that if no such insurance were available, that a CDS was the only option, we now know as an absolute fact that the markets are nothing but a crooked casino.
On London Banker's blog, we're discussing how to fix regulation methods. Following up on another comment, I've said that the touchstone should be whether the financial industry can explain an investment to the regulators. If it can't, the investment doesn't fly. After all, if the regulators can't understand it, how can the investors?