Spooky CDS Exposure of US $ 54.6 Trillion…yes, Trillion !

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 ! 

4 thoughts on “Spooky CDS Exposure of US $ 54.6 Trillion…yes, Trillion !

  1. I recently came accross your blog and have been reading along. I thought I would leave my first comment. I dont know what to say except that I have enjoyed reading. Nice blog.

    Tim Ramsey

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