Oddly, I read last week that Enda Kenny was prescribing that smaller or secondary Irish banks holding the nation's bonds be dealt haircuts. So, here we have governments allowing defaults on entities that presumably have very low exposure to credit default contracts. This literally means that a credit default contract in effect operates as a form of blackmail or racketeering over economies. It's like the mob--you don't want to pay us? See what happens! But if you're small time player, you will be bumped.

Better yet, the big fish will swallow the small banks when the haircut is issued to the guppies.