Truly an economic twat

But it\’s in The Guardian so who is surprised?

In today\’s environment, one would need to ensure that a globally agreed upon mechanism overrode attempts by the International Swaps and Derivatives Association to call a restructuring a \”credit event\”, in which case credit default swaps would need to be paid out and could spread contagion.

Eh? We need to design the international financial system so that those who buy insurance against default cannot claim on their insurance in the case of default?

What?

Doesn\’t this cretin know that the availability of insurance lowers the original cost of the debt? And that private contracts between consenting adults are none of him damn fucking business anyway?

And one would also need to ensure that such a regime overrode the numerous trade and investment treaties that see a restructuring of sovereign debt as tantamount to expropriation.

And governments are to be freed from the obligation to respect the laws that they themselves wrote into solemn treaties?

What the hell is this boy on about? Does he think that abolition of the rule of law is going to make things better for people trying to borrow money or something?

Cretin.

4 comments on “Truly an economic twat

  1. I don’t think the long-term results of destroying property rights and contracts is a core concern of your average Guardian writer or reader, Tim.

  2. In my innocence, I had assumed a credit insurance contract would define a “credit event” within the contract (the CDS). So the insurer would pay out just like fire insurance, which is cheaper if you have a large excess.
    But I’m wrong (not for the first or last time). It’s the ISDA which decides. And who is this ISDA? Yes the usual suspects, JPM, Goldman, etc.
    Zerohedge has the gory insider details.

  3. Why do the left go on about the short-term attitude of the private sector, when things like this show that the truly short-termism is amongst politicians, who will happily destroy next year’s prospects in return for a decent story on the 6 o’clock news?

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