Whatever crosses my mind.
This is what speculation is all about. By anticipating the future, speculators may bring about events earlier and reduce their potential harm. Speculators anticipate a sovereign default and speculate in this direction via CDSs. Thereby, they put a limit on the reckless fiscal behavior of the government. In sum, CDS may be used as bets that can make unsound financial institutions and reckless governments fall sooner than they otherwise would. Therefore, they are feared by governments. Yet, the ultimate cause of the collapse is the reckless behavior and not the bet against its sustainability. The bets may discipline and put, effectively, a stricter limit on reckless behavior.
