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Strategies & Market Trends : The coming US dollar crisis

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To: Real Man who wrote (8543)6/8/2008 3:14:04 PM
From: Rarebird  Read Replies (2) of 71409
 
<<CDS are underpricing actual credit risk during good time pushing bonds higher, and overpricing credit risk during bad times, as demand for them soars.>>

These CDSs are insurance against debt defaults of US corporations. What does this height of insurance (62 trillion) say about the American financial world's confidence in corporate America? After all, it was the US banks which made the loans to corporate America which they are now buying insurance against.
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