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Stat of the Day: CDS Spreads for Cali, Michigan and Illinois are up and to the right

You saw my Stat of the Day: California now in top ten for highest government default probabilities in the world. Here’s a look at those CDS spreads for California over time – Michigan and Illinois are in the mix here too.

A friend who saw these numbers, asked "is this what they mean by up and to the right?" The funny thing is, the spreads were worse in February.

You can see the other states in distress like New York, New Jersey and Nevada not far behind. The City of New York gets in there too. (Hat tip Scott)

Wait for July and August for the budget cuts necessary to reduce these CDS spreads to be felt in the real economy.  That’s when things will soften quite a bit.

About Edward Harrison

Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty years of business experience. He is also a regular economic and financial commentator on BBC World News, CNBC Television, Business News Network, CBC, Fox Television and RT Television. He speaks six languages, a skill he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.

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• Another failed bank, this time in Cali 18 Dec 2009
• Stat of the Day: California now in top ten for highest government default probabilities in the world 12 May 2010
• FDIC closes banks in Michigan and California 24 Apr 2009
• Banks seized by FDIC in Nevada and Illinois 27 Feb 2009
• Illinois governor Blagojevich’s dumb press conference 9 Dec 2008