The Dumb Question

The EFSF As A Hedge Fund | ZeroHedge: "So, your business plan is to go and buy stuff that no one wants, that is unlikely to ever be in position to repay the debt, and you aren't even price sensitive?  The EFSF guys are getting very excited, they can tell this investor is on the hook, and now all they have to do is reel them in.  They explain that it is even better than that.  A couple of the big guarantors are in trouble themselves, but by buying their bonds we help ensure that they don't default.  Investor, now wishing they were anywhere but at this pitch, frowns, rubs hand over face, and asks for clarity. Are you really telling me that some of the assets you purchase will be debt of the countries that are providing the guaranty? The EFSF can smell a sale, and explains once again it is even better than that, and reminds the investor that not only will they be buying bonds of some of the countries that are providing the guarantees, but they will also be buying equity stakes in the banks of those countries.

The investor now just can't resist and asks what is going to happen if someone defaults. For the first time EFSF is a bit confused. They had been told this investor was a smart guy and they cannot understand why he would be asking such a dumb question."

And if you're having trouble understanding the glory of our financial and political genius overlords by reading about it, there's always this:
Enjoy. Or vomit. Or something.