I have no strong opinion on which way the Greek tragedy will play out. I am however prepared for the potential outcomes for both scenarios. I would suggest that all investors have strategies prepared (in advance) as this drama unfolds.

One other related point regarding CDS. Please read this article on the makeup of the CDS spread committee and the risks involved – fascinating. The banks that issue the CDS are on the committee to decide if the CDS are to be triggered! Figure that one out.