The G7 Needs To Act, This Weekend, On Ireland (Baseline Scenario)
Look at the latest Credit Default Swap spreads for European sovereigns (these are the data from yesterday’s close). As we’ve discussed here before, CDS are not a perfect measure of default probability but they tell you where things are going – and changes within an asset class (like European sovereigns) are often informative.
European CDS have been relatively stable – albeit at dangerously high levels – for the past month or so. But now Ireland has moved up sharply (the green line in the chart).
I just think it’s awesome that Ireland is the green line.
Erin go blah!