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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (83071)	11/12/2011 6:23:38 AM
From: Haim R. Branisteanu	Respond to of 218549

Yes this is the major US problem not mentioned by the talking heads and same US financial institutions are selling short EU debt to sell even more CDS contracts. Second, while U.S. regulators have said American banks have only minimal direct exposure to the troubled European countries, the actual risk may be much higher. That's because earlier this year U.S. banks increased sales of insurance against credit losses to holders of Greek, Portuguese, Irish, Spanish, and Italian debt. Just how much could American banks be on the line for? According to the Bank for International Settlements, U.S. lenders offered guarantees -- essentially credit-default swaps -- to owners of this debt in the amount of $518 billion! The folks at the Federal Reserve and the Treasury are thus anxiously monitoring events in Europe, well aware that a cascade of sovereign-debt defaults in Europe could do serious damage to U.S. financial institutions.