It’s sort of like deja vu — we’ve see this movie before. The U.S. GDP came out at 4 percent, and yet everyone is now concerned about growth. We have the Argentine default and that has resurfaced credit default swap issues. Is this a default or not? The other question is, who insured against a default that now has the exposure?
Then of course we have the Middle East problems. The last time we spoke I mentioned how complacent the market participants were and how the markets were mispricing risk. This week investors may just be waking up to the dangers. So we should expect much more volatility as a result.
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