There is a known $41 billion in Credit Default Swaps (CDS) on Russian debt

Wall Street on Parade ^ | 7 Mar 2022 | Pam Martens

[delta7]

There is a known $41 billion in Credit Default Swaps (CDS) on Russian debt. There is likely many billions more in unknown amounts. There are also billions more in Credit Default Swaps on state-owned Russian corporate debt and non state-owned Russian corporate debt. In addition to Wall Street not knowing which global banks and other financial institutions are on the hook to pay out on the Credit Default Swap protection they sold in case of a Russian sovereign debt default (or Russian corporate debt default), there is also approximately $100 billion of Russian sovereign debt (whose default is looking more and more likely) sitting on the balance sheets of foreign banks. Put it all together and you have the makings of a replay of the 2008 banking crisis when banks backed away from lending to each other because they didn’t know who would fall next from toxic subprime exposure. That led to a liquidity crisis and the unprecedented involvement of the Federal Reserve secretly pumping trillions of dollars into the megabanks on Wall Street and their foreign derivative counterparties. T

[delta7]

Senile Joe shoots himself ( and us) in the foot- again.

[montag813]

Yep. We are going down. Hard. Prepare yourselves.

[PeterPrinciple]

I have posted before.

Ever wonder what happened to all the Soviet union debt?

[oblomov]

Note that “Russia” is, for leftists, just a proxy for their domestic political adversaries.

Their ultimate targets for sanctions and pressuring multinational corps to block access to certain people is “Americans who support Trump”.

[oblomov]

They defaulted, in ‘98.

[moehoward]

“Put it all together and you have the makings of a replay of the 2008 banking crisis when banks backed away from lending to each other because they didn’t know who would fall next from toxic subprime exposure.”

Charming.

[Antoninus]

It's almost like our leaders don't have a clue...or they know exactly what they're doing and are just that evil.

Interesting times.

[HighSierra5]

Pukin will come out on top of these economic sanctions.

[xp38]

100 billion? pffft I gots 30 trillion that has no hope of being repaid over here somewhere.

[one guy in new jersey]

Without Big Macs and Pumpkin Spice Lattes, though, will he view his efforts as being worthwhile?

[combat_boots]

Yup

I look at this now as theater

We’re in a war game

Being fierce, we’re the Montanyards

[Fido969]

They defaulted, in ‘98

Killjoy.

[babble-on]

Derivatives are only as useful as the counterparties are solvent.

[Track9]

Is this a giant debt canceling scheme? Seems like the ruble is a good buy these days.

[Mouton]

Paging Michael Lewis, pick up the white courtesy phone.

[outofsalt]

Democrats will declare it a student loan debt and forgive it if Russia will vote democrat in November.

[fhayek]

Yeah $41 billion? The Fed can print that up in the basement overnight.

I still don't understant why people do CDS's. It's like co-signing for your deadbeat brother-in-law and he buys you a six pack of beer in return.

[PeterPrinciple]

They defaulted, in ‘98.

---

Russia assumed all the soviet union debt. Now why would they do that?

[cgbg]

“It’s like co-signing for your deadbeat brother-in-law and he buys you a six pack of beer in return.”

The beer tastes good, and you know Uncle Joe will bail you out because you are too big to fail.

[G Larry]

Can the U.S. trade our debt for Russia's?

Then we could pay the worthless Ruble debt off in dollars and we're solvent again!