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They are called "Bond Vigilantes" and lately they strike terror into the hearts of EU finance ministers and PMs.
But, it turns out that they are just a cautious bunch who look after billions invested in pension funds.
When they invest, they demand their money back, and will charge higher interest to a borrower if they see any risk.
"When we buy, we are investors, and when we sell or don't buy we are 'speculators', according to the politicians — but we are the same people," said a hedge fund manager. "Ireland decided to rescue its banks by making the taxpayer finance the rescue, instead of letting shareholders and bondholders take the loss. This was a big mistake."
A hedge fund manager said: "The bond market provides liquidity to countries – they are not the enemy of governments, but the lenders. We are not dealing with evil speculators, but with pension funds."
What scares the pols is that the vigilantes are now arguably more powerful than governments — a lesson some had not accepted until this year.
