Credit Default Swaps might be OK, for a while...
MISH today has an interesting article at his blog re whether or not CDS instruments will be honored in this 50% Greek Haircut.
http://globaleconomicanalysis.blogspot.com/2011/10/fitch-says-50-haircuts-would-constitute.html
He thinks that in the end that they derivative players on the hook for paying off if Greece defaults its 50% WILL PAY. Why? Because if they do not, then all CDS then become worthless, BANG!, just like that. And the Greek portion of the CDS out there is pretty tiny compared to ALL the rest. And that J P Morgan is such a giant in derivatives-land that they will want these CDS to still be worth something, so they may force the CDS to be paid as per their contracts.
MISH goes on to say that even if the CDS ARE paid for Greece, that we are still looking at Portugal next, then maybe Spain, Italy and Ireland (Belgium and France too?). THAT'S when the those dependent of the CDS insurers might not get paid... Then the game is over.
Not a whole hell of a lot of time to get a bit more PMs...