How would you like to Bet on other People’s Debts !? ….Will they Pay or will they not !?…USA has this great Gambling Product that goes by the terminology of CREDIT DEBT SWAPS or CDS for short
Just read the frightening revelation that the Exposure currently on CDS is US $ 54.6 Trillion…that’s over three and a half times the Country’s GDP and a scary 85% of the Aggregate GDP of the world !
The assumption was that House Prices will continue moving up and refinance opportunities will become available…With House Prices crashing and this assumption going bust there have been a spate of Defaults and ‘D’ Fault has to be pinned top down from the President and Regulators downwards
Methinks for the first time in US Presidential Elections History,both prime candidates must be praying that the other wins !