And yet the actions of a small number of creditors, perhaps not overly interested in or certain about being paid back, have driven a compliant debtor into sudden and chaotic default. This would be the phenomena known as “empty creditor”: you lend money to someone not because you want the money back in the future, but precisely because you don´t want to get your money back. CDS, especially if your derivatives position is larger than your underlying bond position, turns traditional credit relations upside down, transforming water into wine for those who purchased protection. A default, far from being bad news, becomes a glorious thing, the very end in itself.
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