Or even a simpler explanation is:say your house burned down but some of it was left (30%) and you went to collect on your homeowners insurance. The insurance company said that the "Fire event association" declared that a fire did not occur, so you are not entitled to collect any insurance on your home.

My opinion...All of the delaying and dilly dallying with the "Greek default" over the past several months was merely to allow the governments and CB's (remember how the Fed handed out money to euro CB's last month?) to fatten up the balance sheets of the effected institutions so they would have enough margin to survive the non payment of the CDS's, and avoid the fate of MFG, who made the mistake of being hugely long and levered the Greek CDS before the last "non credit event". At least the connected ones. Be interesting to see who if any fail after this and what black swan event that no one sees will create unintended consequences.

Wow, just when you think that things can't get any more insane, you are shown again that they can.