As reported earlier, some more CDS trader talk:
I m hearing and being asked from a few sources that the CDS markets in the sovereign (Greece, Dubai. Etc) nations are going to “banned “ from trading to avoid a BSC or LEH like collapse. I personally have no idea if there is any truth to the story but it seems to be just going around in the last half hour. Obviously Greece is on the forefront of traders minds and I don’t know if a “ban” in trading this stuff is a good or bad for the markets (trades seem to think would be a huge positive)…. But I would appreciate any insight.
Of course, the fact that the mechanics of this "ban" are so inconceivable as to make the rumor beyond ridiculous, is precisely why everyone is terrified it will be true. After all this is precisely the kind of galactic stupidity/insanity we have grown to expect out of the 3 neurons shared between Bernanke/Bair/Shapiro/Geithner.
As for whether aside from machines is buying this (for now), just look at today's comparative volume.