The fight of 2012 is on.
Well it's been on and off for a few months now. In the blue corner are the hedge funds. In the red corner are Merkel and Sarkozy as team Merkozy.
The Hedge Funds have teamed up with some rogue French Banks and the Merkozy team have the eurocrats firmly behind them.
The IFF is the referee and the contest is like a trade union wage dispute. The hedgies want 100%; Merkozy are only prepared to give them 20%. Merkozy hate the hedge fund locusts and despite hating the Greeks who will benefit from a decent debt write off, wish to see the hedge funds take a smackering loss. As you know hedge funds are having a torrid time and Merkozy can sense blood.
How many hedge funds bought discounted Greek debt? That would be lots. I doubt many of them saw the skinhead haircut and the 30 year bond swap that isn't guaranteed by the EU coming either.
Winner? Well whoever wins, Greece loses.
Do any hedgies play by the rules (businessweek)
UK tobin tax fudge (telegraph)
As we said they should (fintag oct2011), RIM changes course (wsj)
As we said they should (fintag jan2011), Tesco changes course (telegraph)
RIM to get their new dos driven blackberry device to be built in Greece.