Reinko

Golden Arches Safer Than Uncle Sam?

Oh oh Kathy, funny to observe that McDonalds CDS is now cheaper compared to Uncle Sam.

All I remember is that I advised the European pension funds to buy this insurance now it is so cheap (a few weeks ago the 5 year stuff was only 18 pips or 1.80 US$ for every 1000 US$ insured a year).

At that time of that advice the 10 year was already 30 pips and you did not mention in your article if 5 year CDF McDonalds was weighted against 5 year US government bond stuff...

You can also turn this model upside down and ask yourself the next question:

Is there anything, is there just one detail that will prevent a future collapse of US government finances?

Is there just one detail that will prevent collapse???