Not Quebec… please, anyone but Quebec!
Well, this is just a huge slap in the face for America: The price of credit default swaps on five-year US government debt hit a record 18 basis points in early trading, according to CMA Datavision. This means that it costs $18,000 a year to buy insurance on $10m of US government debt. Tim Backshall, ...
Well, this is just a huge slap in the face for America: The price of credit default swaps on five-year US government debt hit a record 18 basis points in early trading, according to CMA Datavision. This means that it costs $18,000 a year to buy insurance on $10m of US government debt. Tim Backshall, chief strategist at Credit Derivatives Research, said the price implied that the US was more likely to default on its obligations than Japan, Germany, France, Quebec, the Netherlands and several Scandinavian countries.
Well, this is just a huge slap in the face for America:
The price of credit default swaps on five-year US government debt hit a record 18 basis points in early trading, according to CMA Datavision. This means that it costs $18,000 a year to buy insurance on $10m of US government debt. Tim Backshall, chief strategist at Credit Derivatives Research, said the price implied that the US was more likely to default on its obligations than Japan, Germany, France, Quebec, the Netherlands and several Scandinavian countries.
Daniel W. Drezner is a professor of international politics at Tufts University’s Fletcher School. He blogged regularly for Foreign Policy from 2009 to 2014. Twitter: @dandrezner
More from Foreign Policy
Why Do People Hate Realism So Much?
The school of thought doesn’t explain everything—but its proponents foresaw the potential for conflict over Ukraine long before it erupted.
China’s Crisis of Confidence
What if, instead of being a competitor, China can no longer afford to compete at all?
Why This Global Economic Crisis Is Different
This is the first time since World War II that there may be no cooperative way out.
China Is Hardening Itself for Economic War
Beijing is trying to close economic vulnerabilities out of fear of U.S. containment.
Sign up for Morning Brief
Foreign Policy’s flagship daily newsletter with what’s coming up around the world today from Foreign Policy’s newsletter writer Colm Quinn.
By signing up, I agree to the Privacy Policy and Terms of Use and to occasionally receive special offers from Foreign Policy.