America's Debt Riskier Than Quebec's

At least that's what the credit default swap market is saying, thanks to the bailout of Freddie and Fannie.

Tim Backshall, chief strategist at Credit Derivatives Research, said the price implied that the US was more likely to default on its obligations than Japan, Germany, France, Quebec, the Netherlands and several Scandinavian countries. Traders said the CDS market for US debt was illiquid and it was hard to see evidence of increased concern over US creditworthiness in broader market prices.

Via Paul Kedrosky

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