I can't believe I even need to write this post. Really - I don't want to - but when the Prime Minister of Greece places the blame for his country's woes on "speculators," the end really must be near. Maybe I'll just try to let others explain it in their own words:
From Jim Rogers (via Z/H)
"No, of course, not, if you think that speculators and hedge funds went out and run up a deficit of 12% of the GDP, of course not. The Greeks did it and the Greek politicans did it. Then other people see the problems and started selling. The main people who are selling in Greece are Europeans who are selling, cause they see the problems. It's just like in America. When Fannie Mae got into trouble, people sold Fannie Mae. Speculators got in too, as people call then, but speculators did not cause Fannie Mae to run up gigantic debts and get into trouble, management did. And then that attracted investors who tried to take advantage of the situation."
ZeroHedge elaborates: "Not to mention that if speculators are truly to blame, all they do is create a terrific buying opportunity for everyone else on the other side of the trade."
MISH weighs in on the insanity:
"What hurt Greece was Greece...Moreover, one should not just blame Greece, but the EU itself for not looking into the finances of Greece better. Indeed it is highly likely the EU purposely overlooked problems in Greece in order to expand the EU. The EU is also responsible for structural problems as Volcker pointed out.
Now, as bear markets expose and magnify structural issues, Greece and the EU are blaming everyone else for problems they caused."
You can head back to another piece at ZeroHedge for the wrapup - where German regulator BaFin concludes that there are "no signs of massive CDS speculation against Greece."
Look, folks: CDS did not kill Greece, short sellers did not kill Bear Stearns, and no one is metaphorically buying insurance on their neighbor's house and burning it down. Greece burned down their own house with years of poor fiscal decisions.