According to the story, the rate for CDS on U.S. debt is now about 100 "basis points", equal to France and well below Britain (160). This suggests that despite everything, the U.S. is still in relatively good shape - or that other countries are even worse off.

One wonders what the rates are on other state debt: Japan, Germany, Canada, Korea, China, Switzerland, Italy?

These CDS instruments are insurance against default by the U.S. The other question to be asked is: What private institution, or even class of institution, could possibly pay off all the claims from such an event?

Posted by: Rich Rostrom on March 16, 2009 8:58 PM