{"id":470897,"date":"2010-03-25T10:06:00","date_gmt":"2010-03-25T14:06:00","guid":{"rendered":"http:\/\/www.businessinsider.com\/default-swaps-dont-care-about-europe-its-the-us-theyre-scared-of-2010-3"},"modified":"2010-03-25T10:06:00","modified_gmt":"2010-03-25T14:06:00","slug":"think-europes-financial-discipline-is-a-joke-americas-just-became-even-worse","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/470897","title":{"rendered":"Think Europe’s Financial Discipline Is A Joke? America’s Just Became Even Worse"},"content":{"rendered":"

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Here’s an interesting piece of perspective, courtesy of Mr. Market.<\/p>\n

It appears the Germany crisis is fading, partly thanks to the rock solid Angela Merkel<\/a>, and fears of a U.S. debt crisis are edging back into the lime light, if the views of credit default swap traders mean anything:<\/p>\n

WSJ:<\/a><\/p>\n

As the folks at Standard Poor’s Valuation and Risk Strategies division noted in a research note Monday, the difference between the spread on U.S. sovereign credit default swaps and an equivalent benchmark for AAA-rated euro-zone sovereigns flipped into positive territory March 12. As U.S. CDS spreads expanded to their widest levels in two years, that cross-region gap blew out to 5.7 basis points last Friday before narrowing to 4.7 Tuesday.<\/p>\n

Given that the euro is making new near-term lows against the dollar right now, perhaps it’s time to consider closing the euro short and going long. America’s problems could soon overshadow Europe’s once again.<\/p>\n

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