Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
If we are talking about the underlying asset, yes.

But what I'm talking about is the exposure that comes through a a currency default situation, or a severe decline.

The saving grace, I think, is that most of this currency swap deals are probably on a short term basis, which means, I think (correct me if I'm off), that while the number over the year is large, that at any one time, the exposure is relatively small.

I do think that there's a real problem brewing in Eastern Europe with these mortgages that were denominated in euro, swiss francs,or my favorite yen.

Interdependence has typically been presented as benign by the media, but now that these derivatives have been introduced into the situation, manageable declines in an underlying asset spread like a contagion through all the instruments linked to them,

And I'll give my consent to any government that does not deny a man a living wage-Billy Bragg

by ManfromMiddletown (manfrommiddletown at lycos dot com) on Mon Mar 2nd, 2009 at 03:34:53 PM EST
[ Parent ]

Others have rated this comment as follows:

Carrie 4


Top Diaries

Occasional Series