Warm_Paw

Counterparty Risk Subsides: Is the Worst Over for Financials?

Notice on the chart how overall baseline risk continues to increase upward to 2009.
Notice how the more serious risk spikes while CDS' come due.
This chart says things are getting worse and that no one knows what the next spike will bring.
We have to ride it out until the next bundle of CDS' come due to find out how much of the next wave of maturities are toxic, worthless and AIG must then reimburse a bank with money it doesn't have.
AIG reports in August, they may not even be around for the next spike. That would put the toxic assets solely on the banks.
Goldman will have paid itself handsomely just in time to get egg on their face. We're only half way, we're not out of the woods yet.
Probably why Goldman's in a hurry for their bonus!