Your articles are always outstanding—unfortunately, really, you are one of the few professionals out there who really “get” it. I talk to so many people who don’t understand even the concepts of things like primary trends or how to analyze them, yet they are managing people’s money.

I love reading your articles, because not only do you write comprehensive and clear content, you get things right, and don’t get concerned with red herrings.

Thank you so much for sharing.

Shaun

This is a fantastic reference on the fundamentals of the credit markets. I’ve not seen such a rich collection of links to material anywhere else.

I will return to your article (and its sources) often in the coming months.

Thanks much for such thorough work,

GNE
http://goodnewseconomist.com

Although the stuff is coming down, volume does not pick up as most banks prefer to park the overnight stuff at the ECB or the FED. This is not a miracle: banks know what they have on their balances so if they cannot trust themselves, how can they trust other banks?

At the end of the article we see country CDS coming along; The USA is standing at 66.9 bps right now.
That means the sellers of this stuff think the USA has a default likelihood of at most 0.669% a year or a once in a 1/0.00669 = 145 year event.

Talking about dumb sellers… (Ok ok, the USA can always inflate out of debt but that is also some kind of default although the CDS sellers will feel no direct pain on that joke.)