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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...

The Greek Bailout, the CDS Market, and the End of the World Interest-Rates / Eurozone Debt Crisis Mar 02, 2012 - 08:28 AM By: Money Morning Shah Gilani writes: A not-so-funny thing happened on the way to the latest Greek bailout. The terms and conditions of the bond swap Greece agreed to before getting another handout constitutes a theoretical default - but not a technical default. That's not funny to CDS holders. Greece hasn't defaulted (so far), but some of the buyers of credit default swaps, basically insurance policies that pay off if there is a default, claim the terms...

For the presumed leader of the most powerful country on the planet, Barack Obama has the unusual infantile habit of hastily assembling press conferences to cry on the shoulder of the American people, as would a petulant and spoiled child who runs to his mother when he can't have his way in the outside world, or who runs to mommy for a sympathetic ear, pointing a finger at someone else when he has broken something. Obama has again run crying, now to the world, because he can't have his way. Also, to add to his frustration, the whole "equal branches...

On July 13th, the president of the United States angrily walked out of ongoing negotiations over the raising of the debt ceiling from its legislated maximum of $14.294 trillion dollars. This prompted a new round of speculation over whether the United States might default on its financial obligations. In these circumstances, it is useful to recall the previous instances in which this has occurred and the effects of those defaults. By studying the defaults of the past, we can gain insights into what future defaults might portend. The Continental Currency Default of 1779 The first default of the United States...