Portugal, Ireland, Spain CDS spreads hit records
Fears surrounding sovereign-debt problems on the periphery of the euro zone drove the cost of protecting the debt of Ireland, Portugal and Spain to record highs on Thursday, according to data provider Markit. The spread on five-year Portuguese credit-default swaps widened to 505 basis points from around 491 on Wednesday, topping the 500-level for the first time, Markit reported. That means it would now cost $505,000 a year to insure $10 million of Irish sovereign debt against default for five years. The five-year Irish CDS spread widened 27 basis points to 620, while Spain’s spread widened to 294 basis points from 279. Greece’s spread was 12 basis points wider at 890.
I am in total shock and disbelief. No, not that these countries are headed down the drain. I’ve been warning about that for a while. I am shocked that this isn’t on the front page of every newspaper and the lead story on the TV and radio news shows. The world is burning while the main stream media fiddles.