Next Phase of the Credit Crisis to Hit Credit Default Swaps $62 Trillion Market

Interest-Rates / Credit Crisis 2008
Jun 07, 2008 - 04:13 AM

By: F_William_Engdahl

While attention has been focused on the relatively tiny US „sub-prime“ home mortgage default crisis as the center of the current financial and credit crisis impacting the Anglo-Saxon banking world, a far larger problem is now coming into focus. Sub-prime or high-risk Collateralized Mortgage Obligations, CMOs as they are called, are only the tip of a colossal iceberg of dodgy credits which are beginning to go sour. The next crisis is already beginning in the $62 TRILLION market for Credit Default Swaps. You never heard of them? It's time to take a look, then.

The next phase of the unravelling crisis in the US-centered “revolution in finance