Hedge Funds Playing Chicken With Greek Debt

By Matthew Yglesias  |  Posted Tuesday, Jan. 10, 2012, at 5:42 PM ET

The political drama has long since moved on to Italy, but the details still haven't been worked out over the question of Greek debt and hedge funds are a big part of the reason.

The issue, as you may recall, went like this. Greece was genuinely honest-to-God insolvent and couldn't cover its debts. It needed to default.