Crisis Alert: Credit Default Swaps Soaring on European Banks
3 posters
Author
Message
Northern Boy Senior Member
Number of posts : 1236 Age : 64 Location : Canada Registration date : 2009-01-26
Subject: Crisis Alert: Credit Default Swaps Soaring on European Banks Thu Aug 25, 2011 10:46 am
Harry Wilson reports from the U.K.:
Quote :
Insurance on the debt of several major European banks has now hit historic levels, higher even than those recorded during financial crisis caused by the US financial group's implosion nearly three years ago. Credit default swaps on the bonds of Royal Bank of Scotland, BNP Paribas, Deutsche Bank and Intesa Sanpaolo, among others, flashed warning signals on Wednesday. Credit default swaps (CDS) on RBS were trading at 343.54 basis points, meaning the annual cost to insure £10m of the state-backed lender's bonds against default is now £343,540..."I think we are heading for a market shock in September or October that will match anything we have ever seen before," said a senior credit banker at a major European bank.
The ECB appears to be maintaining a remarkably tight monetary policy despite the continuing crisis environment in the eurozone. Obviously, a complete liquidation of malinvestments is the best policy prescription. However, crisis in the eurozone is likely to result in more government intervention. This could lead to a very rapid deterioration of eurozone economies---beyond any banking/stock market crash.
Number of posts : 4993 Age : 47 Location : Here Humor : Dry and Wet Registration date : 2009-01-23
Subject: Re: Crisis Alert: Credit Default Swaps Soaring on European Banks Thu Aug 25, 2011 3:19 pm
Thanks for the update, this may get interesting.
sky otter Senior Member
Number of posts : 4389 Registration date : 2009-02-01
Subject: Re: Crisis Alert: Credit Default Swaps Soaring on European Banks Thu Aug 25, 2011 5:48 pm
here's the solution to the money problems..a gaint diamond in the sky..hey, ya can't make this stuff up, ya know
Diamond Planet Discovered By Astronomers (VIDEO)
The nursery song "twinkle twinkle, little star" might have a whole new meaning now that astronomers have found a planet they believe to be made almost entirely of diamonds.
Scientists say the planet exists about 4,000 light years away from Earth, and is probably the remnants of a once-large dead star, Reuters reports. (Scroll down for video.)
"The evolutionary history and amazing density of the planet all suggest it is comprised of carbon," Matthew Bailes of the University of Technology in Melbourne told Reuters. He calls it "a massive diamond orbiting a neutron star every two hours in an orbit so tight it would fit inside our own Sun."
The Daily Mail reported that, even though the planet is small in size, it has slightly more mass than the planet Jupiter.
Scientists were able to find the planet by tracking its companion star, or a pulsar, using the Parkes Radio Telescope in Australia.
As to what the diamond planet looks like, Ben Stappers of the University of Manchester told The Macadonean International News Agency (MINA) it's probably not what everyone pictures: "I don't know I could even speculate. I don't imagine that a picture of a very shiny object is what we're looking at here."
Astronomers detected a similar planet in December 2010, only 1,200 light years away.
Thu Aug 25, 2011 10:46 am
