Stabbing Your Grandmother And Betting Which Way She'll Fall

Sick triumph of disaster capitalism.

States Bristle as Investors Make Wagers on Defaults

"As U.S. cities and towns wrestle with financial problems, investors are finding a new way to profit on their misery: by buying derivatives that essentially bet municipalities will default.
These so-called credit default swaps are basically insurance contracts that have long been available to protect holders of corporate bonds against default. They became available a few years ago for municipal debt, allowing investors to short sell—or bet against—countless cities, towns and bridges, and more than a dozen states, including California, Michigan and New York.
The derivatives are still thinly traded, but their existence has the potential to make investors skittish ..."

"Here's $100, boys, now go put this TNT under those bridge supports."