The Market is Now Pricing In the Genuine Possibility that the US will Default on Its Debt | WHAT REALLY HAPPENED


The Market is Now Pricing In the Genuine Possibility that the US will Default on Its Debt

You've heard of "credit default swaps". They are a type of derivative where one person places a bet that a certain company will go out of business, and another person on the other side of the contract places a bet that the company won't go out of business (see this and this).

Well, people are now starting to increase their use of credit default swaps to bet that the U.S. will default on its ability to pay on its treasury debt.

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