CD and Gordon are missing the bigger point — the unintended consequence of this theft. Sure, the bondholders will likc their wounds and yes, investors do go in with their eyes open. What they don’t seem to be saying (at least out loud) is “these people were rich hedge funds and deserved to get hosed.

Serious investors I know have just moved 20 pct. of it into their mattress for the next four years. Gold, an unproductive asset is looking even better and they are considering moving money offshore before it gets “nationalized” via confiscatory tax schemes. Even the communists in China have a more attractive investing climate than that being created by our own communists in the USA.

It clearly isn’t safe investing in energy, healthcare, transportation or banking because you never know how the government is going to change the rules after the fact to cheat the people who actually put up the money. That Lauria and others went on the record about the Obama administrations speaks volumes about the way Obama plays – this took real guts and you can be sure they are now on the “enemies of the state list”.