Comments for Credit Default Swaps Do Not Insure U.S. Debt at http://www.cepr.net , comment 1 to 3 out of 3 comments http://www.cepr.net Wed, 19 Jun 2013 04:24:39 +0100 FeedCreator 1.7.3 http://www.cepr.net/index.php/blogs/beat-the-press/credit-default-swaps-do-not-insure-us-debt#comment-10197 What is ‘this’ article? I don’t see the article referred to by name, and I don’t detect a link by mouse over. I only comment because this is the second time it’s happened in three days. I don’t know what NYT article you’re talking about. Happened also with your blog “The NYT is Wrong: Official Do Not Say that Medicaire….” - Charles Ganter Mon, 25 Jul 2011 07:52:10 +0100 http://www.cepr.net/index.php/blogs/beat-the-press/credit-default-swaps-do-not-insure-us-debt#comment-10190 In the worst days of the credit crisis 2008-2009 interest rates on US Treasuries actually went down while the price of insuring them went up. Currently treasuries are basically holding steady (down slightly this morning despite discouraging news on credit-ceiling talks) while the price of insurance has gone up. Dean's lawsuit scenario seems pretty far-fetched to me, but how about speculators buying CDS's on the expectation that some people will be spooked - perhaps on the basis of rising CDS prices - and cause a temporary bubble in CDS price? Anyway, CDS's are subject to speculative pressures in different ways than real credit markets and as Dean says can certainly not be taken as general indicators of lack of confidence in bond issuers. - skeptonomist Mon, 25 Jul 2011 04:30:23 +0100 http://www.cepr.net/index.php/blogs/beat-the-press/credit-default-swaps-do-not-insure-us-debt#comment-10184 [quote]Since this is not real insurance, this can more accurately be viewed as the price of a bet on some sort of default event that could allow someone to get into court with a claim.[/quote] USA debt has attained the same status of USA patents and requires a concurrent degree of mafia extortion protective insurance just to make sure nuttin happens to your business. - izzatzo Mon, 25 Jul 2011 02:45:29 +0100