dkp

Shorting U.S. Government Risk

Iceland's debt was in foregn currency, it could not print dollars. Treasury's debt is in domestic currency.

Shorting U.S. Government Risk

Those who are buying CDS on US treasuries, do they really believe that their counterparties will honor their
commitmrnts whren the US itself has failed? They would have been buried long before the death of US Treasury.

The stupidity of the CDS market becomes evident when you consider that the government can always give you cheque in USD to repay its debt..What would you do with that cheque? Deposit in your bank account and put
the amount in the hands of treasury via your bank.

Buy the CDS treasury and you buy snake oil. How clever!