stefalb

Why We Shouldn't Be Frightened by a GM Bankruptcy

Nobody ever talks about credit default swaps in conjunction of a GM bankruptcy. GM has about 80 Bln in debt but nobody really knows how many CDS are written against this debt. Since GM was most favorite short of a lot of hedge funds I bet that there are hundreds of billions of CDS written against GM debt. The systemic cost of a GM default would be immense. 30 Bln more in Government aid are noting compared to the potential CDS damage. That's the real reason why GM will not go bankrupt!!!