Is US Bank Bailout 2.0 now locked in?

[seanm123]

US Bank Bailout 2.0 may very well be locked in now thanks to the very thing that brought down Lehman, and cost the US taxpayers $182 billion to bailout AIG.


Credit Default Swaps on Greek Debt.



Until 2009-2010 there was little demand for Credit Default Swaps or “insurance” on government debt. The possibility that a developed country could default on its obligations always seemed remote.




Today however in the news. Credit Default Swaps and other "guarantees" make up
83% of that exposure.


Headline: Greece poses $41 billion risk to U.S. banks



http://www.marketwatch.com/story/gre...nks-2011-06-15


European banks including the Swiss giants Credit Suisse and UBS, France’s Société Générale and BNP Paribas and Deutsche Bank of Germany have been among the heaviest buyers of swaps insurance on Greek Debt.

Will Bernanke and the FED blink this time?

[brent217]

Re: Is US Bank Bailout 2.0 now locked in?

Will they blink over a mere 41 billion? They have printed TRILLIONS. What's a few dollars more?

Of course, if they delay the printing they might be able to take both Germany and France down a few notches.

So, ya, they will print, but not until Wall Street can get the absolute maximum short term benefit.