Swaps Soar on Germany’s ‘Act of Desperation’: Credit Markets

Discussion in 'Economics' started by Kassz007, May 19, 2010.

  1. http://www.bloomberg.com/apps/news?pid=20601087&sid=aXDwx2XcbAAg

    "The Markit iTraxx Crossover index of swaps on 50 European companies surged 50 basis points to 582"

    “The market sees an inadequate policy such as this as an act of desperation and a refusal to address the fundamental problems at hand,”

    "Prohibiting speculation in the contracts may cause trading in swaps tied to Europe government bonds to freeze up"

    “In some ways, it’s a battle of the politicians against the markets” and “I’m determined to win,” Merkel said May 6. “The speculators are our adversaries.”

    When will people (politicians) realize that traders and speculation is NECESSARY for markets to function properly?! Enough of the trading taxes, enough of the war on speculation. Wake up!
  2. C6H12O6


    Not for me.
    It's necessary for banksters to loot people and governments.
  3. :D
    Governments are the victim now! I love it!

  4. Wow. wow. wow. Every politician, regulator, idiot central banker seems to think they can control this whole thing and that the markets are wrong and they can tame them.

    Hold onto your hats we are going to see vol even worse than 2008
  5. "Speculation typically involves the lending of money or the purchase of assets, equity or debt but in a manner that has not been given thorough analysis or is deemed to have low margin of safety or a significant risk of the loss of the principal investment." Graham and Dodd.

    that god governments don't do any of that...
  6. Rofl!