CDS Curve Inversion

Probability of short-term default higher believed higher as CDS curves for Greece, Spain, Portugal have inverted as has BP CDS. Exposure to Greece for French banks is highest with Credit Agricole, through its ownership of Emporiki, and SocGen, which owns Geniki Bank. The Guardian quotes James Rickards, former general counsel of LTCM, on the morality of CDS - "Why should we have instruments where the hope is for the failure of a sovereign state?".