Well, Now We Know What the Sh%$ Pile is Worth

8.625¢ on the dollar!

Lehman’s Credit Default Swaps (CDS) lost 91.375% off of face value, which is lower than even I expected, I was expecting about 15¢ on the dollar.

So now we have a market price on these assets.

Based on the size of the CDS market, this means that losses are well in excess of world GDP.

This is not a liquidity issue. This is an insolvency issue.

Leave a Reply