$INDU:Timing the Market Opinion

[payupnow]

Art Cashin
Now traders fear the issue will come back again with a vengeance. The [finance] ministers do not want to see a lot of CDS contracts triggered since they don’t know who owns them or, more importantly, who wrote them. That could become a domino-like contagion ala 2008.

But, traders fear a worse outcome might occur if the CDS contracts do not kick in. What good is insurance that doesn’t pay off. That could lead to the assumption that all CDS insurance was useless. That would stratify debt around the globe. Great credits could get all the money they wanted, but less than great credit would be shut out because it could not be insured. That could make the future one in which “the haves” will have whatever they want and all others nothing. Welcome back to the Middle Ages.