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The European nations' "agreement" to allow Greece to default by 50% on its bonds is certain to cause chaos in the financial markets as soon as they figure out what was actually done to the bondholders.
Bondholders normally insure their bonds, and the rate of insurance is based on the risk of default. (These are called Credit Default Swamps, or CDS's.) Bondholders are not going to pay more in insurance cost than they make on the interest gains from the bonds.
But now it appears that the bondholders themselves may be the ones taking the 50% "haircut" on their bond purchases. It is not fully clear yet, but it is being claimed that the insurance companies will not have to pay the bondholders for their 50% losses.
Bix Weir is predicting chaos in the financial markets next week over this issue.