Doom: Do you think it has more to do with the idea of CDS contracts on government bonds is just silly in and of itself? When you're betting that a monetary power (or a department of one) is going to default on a debt--and they don't lose their monetary power in the process--who's going to pay you the face value of your contract if the collapse you're banking on (if you're the CDS buyer) leads to widespread panic and impacts the currency of record on the contract? Or.... Soverign CDS's is just a new way to punish governments for their bad behavior for not encouraging capital to allocate itself freely--that's the real reason why nobody wants to lend Greece any money.