In its Chart of the Day, Bloomberg finally picks up on a topic that Zero Hedge readers are all too familiar with - California CDS. In its coverage of a topic we have discussed (and charted) as recently as a week and as far back as 5 months ago, Bloomberg had this to say (alas to see it, you have to pay Mike $1,800 a month for the actual terminal - the chart is not free on the website):
Investors are increasingly bearish on California, the Golden state, which is facing a $24 billion budget deficit.
The CHART OF THE DAY shows the price on 1-year California credit-default swaps widened to 285.10 basis points from 200 basis points on May 8, according to data compiled by Bloomberg.
As Zero Hedge discussed a week ago, Cali CDS are cheap, maybe too cheap. There is much more widening to come as the CA crisis is doomed to escalate and the Governator will be stuck offering the only possible advice he has left for his fellow Californians (of course, absent the recently quitting smoking, but not quite, President footing another $30 billion taxpayer funded bailout).
And as Zero Hedge's cost structured is hindered by having exactly 0% of the Bloomberg journalist pool overhead, we can afford to provide the Cali CDS chart for free below.