TBTL: Too big to lose
by digby
I’m sure you’ve been reading a lot about the Greek situation. (If you haven’t this Krugman piece will get you up to speed.) It should be another very interesting week.
Sure, they’ve been dealing with 25% unemployment for 7 years now but the New York Times has found the real victims in this whole horrid odyssey:
For investors around the world looking at Greece, there was but one question Sunday: What is going to happen when the markets open on Monday?
That question is particularly acute for the hedge fund investors — including luminaries like David Einhorn and John Paulson — who have collectively poured more than 10 billion euros into Greek government bonds, bank stocks and a slew of other investments.
This weekend, Nicholas L. Papapolitis, a corporate lawyer here, was working around the clock comforting and cajoling his frantic hedge fund clients.
“People are freaking out,” said the 32-year-old Mr. Papapolitis, his eyes red and his voice hoarse. “They have made some really big bets on Greece.
But there is no getting around the truth of the matter, he said. Without a deal with its European creditors, the country will default and Greek stocks and bonds will tank when the markets open.
The humanity. Won’t someone think of the hedge fund managers? These are people on whom we depend to gamble huge amounts of money for the greater good. I’m afraid these bets are Too Big To Lose.
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