U.S. one-year CDS hit highest since July 2011 at 75 bps
ONDON, Oct 16 (Reuters) – The cost of insuring against a near-term U.S. default rose on Wednesday to new mid-2011 highs, reflecting market nervousness that lawmakers may not reach a deal to raise the debt ceiling in time to avert default.
US 1-month T-bill rates jump to 0.4%, and are now higher than 2-year yields:
Markets Are Up And The Debt Ceiling Is Hours Away
Shutdown prompted two out of five Americans to curb spending
The U.S. government shutdown prompted two out of five Americans to curb spending, according to a survey commissioned by Goldman Sachs Group Inc. (GS)
The survey of 1,025 people, conducted from Oct. 10 to Oct. 13, found that the shutdown had a greater impact on lower income consumers, with 47 percent of respondents who earned $35,000 or less saying they would curb spending. Among those with income of more than $100,000, 32 percent said they would tighten spending.
George Soros bets $1.25 BILLION on put option for US Financial collapse
that’s right, Soros is betting on your DOOM !!!
Hedge fund titan George Soros’ biggest position is a huge bearish bet that the Standard & Poor’s 500 will go down, MarketWatch reported.
Soros has a history of rolling the dice on risky propositions in the past and making giant gains. He is known as “The Man Who Broke the Bank of England” because of his successful bet against the British pound that led to $1 billion in profits during the 1992 Black Wednesday U.K. currency crisis.
In its 13F Securities and Exchange Commission filing for the second quarter of 2013, Soros Fund Management reported it bought a put on 1,248,643 units of the SPDR S&P 500 Trust (SPY) exchange-traded fund (ETF) in the second quarter – its largest holding, according to MarketWatch.
Blogger Bullion Baron estimated the SPY put position — relative to the total size of the fund — rose from 1.28 percent to 4.79 percent in the first quarter, more than tripling. It also went up 13.54 percent in the second quarter, nearly tripling again, Bullion Baron said.
The blogger noted Soros’ British pound coup and rumors that Soros also did well with a $1 billion bet that the price of gold would go down, which it has recently.
“We heard when he made $1 billion betting against the yen,” Bullion Baron said. “Where are the headlines for his $1.25 billion bet against the stock market?”