Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
most likely reason that the whole scheme blew up - too many people became aware of the gigantic short sale going on. Two effects: 1) bidding up the price of a CDS and 2) some gamblers started to sweat and fidget (not a good sign for gamblers).

I'll throw in one other off-the-wall suggestion on the holdback of further bail-outs at present: they can't sell enough bonds. The Chinese, Saudis, etc. may have told them that they're not in the market. The Chinese, for one, have decided to use what's left of the US$ credibility to finance their huge infrastructure, public-works projects.

paul spencer

by paul spencer (paulgspencer@gmail.com) on Tue Nov 18th, 2008 at 11:07:32 AM EST
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