We're back to those default swaps again, and the reason why they have nothing to do with insurance and everything to do with speculating on other people's property; Simon Evans in the Independent reports today, the 12th October:
'It is like Joe Public buying an insurance policy on someone else's house and pocketing the full value if it burns down.'
Ring any bells?
On the 25th September I wrote:
'Anorak could take out a vast insurance policy on Anorak Towers, and if it burned down Anorak would get lots of dosh but no Anorak Towers.
Insurers won’t let me take out a vast insurance policy on Anorak Towers, because I would have a clear interest in setting fire to Anorak Towers and collecting lots of dosh.
Of course, I wouldn’t have Anorak Towers, but then I didn’t have Anorak Towers in the first place.'
My highly reputable lawyers, Messrs Sue, Sue and Suesomemore, will no doubt be in touch with the Indie's briefs...