Bank and Broker Default Risk Soars

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The following observation comes from Bespoke.

“As the scarecrows (‘if I only had a brain’) in Washington bicker over partisan politics, the life blood of our economy is no longer flowing. Each hour that passes that a deal doesn’t get done, a tick of GDP washes away. By the time legislation does get passed, too much damage could already have been done.

“Below we highlight the default risk of major banks and brokers through our CDS index. As shown, last week now looks like chump change compared to where levels currently stand. With the no short rule in place on equities, investors have clearly voiced their opinions through the credit default swap market. The proof is in the pudding, and unfortunately Congressional members are putting their parties over their country.You have premission to forward this to your elected officials!

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Source: Bespoke, September 26, 2008.

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2 comments to Bank and Broker Default Risk Soars

  • Paul Sandison

    Too esoteric. If this is so important, explain better.

  • bacaloui

    1000 banks bye-bye, maybe we will see a bottom in 5yrs, maybe? sorry small business, sorry home owners, save, pay debt next 5 yrs as recession like flu drags on. cash flow key, if not survival guide to business-living. 2yr notes-gold, pay debt,save, shop @ wall mart. wall street product giude toxic, rating agencies need to go to school on products, washington is child like in understanding, fed and treasury will not spill bad medicine,due to confidence, lying to off set panic, grab the bull by its horns, situation is bad, tough love, nasty medicine for the cure, where is tall paul!

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