Joey Buttafueco Jr

Agreed

Indeed. There is lots of BS on here, people claiming to be expert traders yet exhibiting terrible bias that makes me wonder if they are telling porkies.

Wol, whereabouts do you live - i don't recall you posting on here before? I have a few comments for the houses you have posted.

I don't think someone would buy CDS protection on UK from RBS if that is what you are saying.

You should be able to get a quote in EUR as well.

Good point re. gold standard. I think we can agree that while it is not impossible, it is extremely unlikely.

I'm not sure if the UK failed to pay on the non sterling liabilities whether it would be classed as a default.

Agreed - see my link - happened in 1932, but I'm not sure what currency loans were denominated in.

Exactly - they keep printing I wrote about the downgrade a year back when it was being talked about then http://www.noelwatson.com/blog/PermaLink,guid,780a34e6-6974-4570-b9c7-450bc5c64661.aspx Spain (5Y) is currently ~104bps, UK 76bps

"if there is no risk of default, why is such risk insurance bought and traded as far as the UK, a sovereign govt. with own currency?" Let me get some views from a few people and post back tomorrow

In theory it can't happen

That is what I think will happen - it will require a lot for the agencies to mark us down.

Can you give your reasoning please

Why don't you arrange an HPC London derivatives drinks and we can debate this at length?

PLEASE STOP MENTIONING AIG WHEN WE ARE TALKING ABOUT SOMETHING COMPLETELY DIFFERENT