The prior Global Debt to GDP post made me dig up this excellent chart from Ron Griess of The Chart Store. It shows the 2007-09 crisis was unprecedented in what it did to credit spreads between the US and Europe:
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Chart courtesy of The Chart Store
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.
"Overall household indebtedness is up from $7 trillion to almost $10 trillion since 2000. On this sum, we estimate, the American consumer has an annual interest bill of more than $500 billion; a sum, by the way, that vastly exceeds his current income growth." —Kurt Richebacher
Knowing that the vote over the weekend in Greece was really a referendum on Euro membership, a majority of the Greek Parliament said yes to staying. European Finance Ministers meet again on Wednesday to solidify the 2nd bailout package for Greece at the same time hopefully a deal is consummated between Greece and its creditors this week. The Greek 14.5b euro bond that matures on March 20th is up by 2 pts. The optimism that all will be completed and contained AGAIN to Greece has yields lower in Portugal, Spain and Italy. The iTraxx Financial Index is also narrower by...
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April 12th, 2010 at 5:10 pm
I don’t know what is crazier… how high the spreads got or how much they’ve come in…
April 12th, 2010 at 6:39 pm
Im not sure what you mean by credit spreads between US and Europe. Libor is an inter-bank rate, not a US-Europe spread indicator…
April 12th, 2010 at 7:01 pm
OT: Uh, oh. Get out the magazine indicator -
http://ndn3.newsweek.com/media/8/041910_DOMcvr.jpg
Or is Newsweek so irrelevant that it doesn’t count?
April 12th, 2010 at 7:20 pm
Hmmm…
Now what lurking in the periphery might help usher in a little LIBOR reversion?
April 12th, 2010 at 11:00 pm
Mortgage Defaults May Be Driving Consumer Spending
http://finance.yahoo.com/news/Mortgage-Defaults-May-Be-cnbc-1964280202.html?x=0&sec=topStories&pos=6&asset=&ccode=
April 13th, 2010 at 1:25 am
VIX slumbering too.
http://tinyurl.com/y5a6hnh
April 13th, 2010 at 3:01 am
[...] 2008 really was a bad year for credit [...]