As the problem of debt refuses to go away and in fact, quietly spreads, we’ve seen another slow development over the course of the last few weeks – problems in Greece appear to be worse than originally expected and credit default swaps are sending warning messages again. The term structure in Greek CDS recently inverted as investors are now increasingly concerned of a default in the next few months. This is something we saw in 2008 before the financial markets nearly collapsed. That time the inversion was in Lehman Brothers and Merrill Lynch CDS.
As the problems in the banking sector unfolded in late Summer 2008 the sovereign debt of the big three developed nations began to skyrocket before reaching a crescendo in early 2009. What’s alarming with the situation in Greece is the similarities in CDS price action. The recent uptick could be serving as a warning flag of things to come in 201o and 2011 when the problem of debt has potential to rear its ugly head again. Barclays might not have been too far off when they said the probability of a crisis would grow in 2010.
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More California Companies Planning Big Layoffs
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ReplyDeleteThe Oligarchs are busy playing with Haarp. Anyone that believes that the quakes that are hitting Haiti but not touching the DM naturally, I have a bridge to sell you.
Nicolai Tesla had this tech 100+ years ago figured out.
Go Empire! Have some fun with the sheeple.
California is likely a much bigger problem then Greece.
ReplyDeleteWhat was it those CA teenage girls used to say?
ReplyDeleteGAG ME WITH A SPOON!
Well it guess they will now get gagged with mud and water.
Well, we can't all be as "UP TOP" as the folks in CA can we?
Sheep sheep sheep
ReplyDeleteI just love saying sheep
While everybody is worrying about the economy the government is also thinking up ways to control populaton growth. Nationalize health care and provide abortions for those who are not worthy of producing offspring. Promote gay lifestyle and give gays special protection, because everybody knows people of the same sex can not produce offspring, starve a nation so that the people might turn to cannibalism and do the unmentionable, send young, brave, healthy people to Aphganistan so that as soon as Iran gets a nuclear bomb they can wipe out our troops when they drop it on them. This is Obama and his cronies agenda. The less people there is the better control they can have over the people.
ReplyDelete