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Referring to developing countries as "the darling of the market," and saying the rush out of...

Referring to developing countries as "the darling of the market," and saying the rush out of municipals is "overdone," a Citigroup strategist recommends buying cheap CDS on countries like Brazil while selling expensive protection on wealthy states like Connecticut and New Jersey.
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Comments (5)
  • 1980XLS
    , contributor
    Comments (3333) | Send Message
     
    Yeah, Right.

     

    Connecticut's Governor resigns while leading the State with the highest per capita Debt in the Union.

     

    Meanwhile businesses flee the most anti-business state in droves.

     

    All one has to do is listen to the new Governor Elect's campaign commercials. " Greedy Businessmen caused the Economic Crisis"

     

    Connecticut may have some rich people, but the State is Broke.

     

    Then they send The attorney General that allowed it to go on, to Washington as a Senator to do more damage.

     

    Connecticut is worse than Greece.
    3 Jan 2011, 05:04 PM Reply Like
  • youngman442002
    , contributor
    Comments (5129) | Send Message
     
    so this is the new economy..invest in CDS´s...boy are we in trouble..
    3 Jan 2011, 05:17 PM Reply Like
  • SA Editor Stephen Alpher
    , contributor
    Comments (557) | Send Message
     
    I assume the advice is for their institutional clients, but hopefully us average joes can learn from it!
    3 Jan 2011, 05:19 PM Reply Like
  • 1980XLS
    , contributor
    Comments (3333) | Send Message
     
    Any regulators that may be allowing the Banks to be trading this crap
    should be institutionalized.

     

    Isn't that what got us into this mess in the first place?
    3 Jan 2011, 05:22 PM Reply Like
  • Kamil Kolacek
    , contributor
    Comments (1017) | Send Message
     
    "a Citigroup strategist recommends buying cheap CDS on countries like Brazil..."

     

    Yeah, pray, tell how an individual investor can purchase any sovereign credit default swap??? Short answer- they simply can't! Only about a dozen or so of the worlds largest banks and fin. institutions horse-trade these things back and forth.

     

    These things usually trade in minimum $10m increments and are only accessible to a very small cadre (or cabal, if you like) of financial behemoths.

     

    3 Jan 2011, 05:20 PM Reply Like
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