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Because it further exacerbates the issues that the banks are having... Effectively, IOER = 0 implies that there's a tax on excess reserves (due to the FDIC levy). If there's no adequate outlet for these excess reserves, which is what I believe, they will remain at the Fed and bleed the banks...

But do you really want to "park" your money in an asset like UST? All sorts of risks (duration, credit, etc) and what do you get? Not a whole lot more than cash...

It's not my Euro dream, as I don't live in the Eurozone. I am not sure whether there will be referenda on the subject in the various EU countries. In general, if you look at the history of the various Eurozone initiatives, quite a lot of them have been approved or rejected by a referendum...

Why do you think it will translate into asset inflation?

I would agree, although it's v hard to predict. At the zero bound, things get really funky.

Ha, this is just my view, as merely mortal as anyone else... Just 'cause the banks will be screwed by this and the mkt might freeze, which means nobody willing to lend to anybody. That would mean that people who are short (and desperate) will be paying up, so the rate will, perversely, go up...

Nobody knows and that's why sov CDS is such a sh1t product. It's probably not going to trigger. At least those are the indications so far.

But wait, isn't the world ending in 2012 anyways, so who cares?

Perversely, if they do cut IOER, FF effective might spike quite dramatically.

Do you have access to Excel?

I think you're very confused.

+1

Yes!

I see what you did there... Clever!

Bloomberg has smth, although I am not sure it's live. There's also the Markit website, but, again, I think it's only EOD.

What sort of information?

I think jrkob explained earlier in this thread... It's in basis points, not dollars and forget the whole upfront/running thing. So, according to CNBC, it's 5286bps or roughly 53 points. The number applies to the notional of the trade to give you the total cost.

Huh? How much do you know about the history of Europe? What is it, if not hundreds of years of horrific warfare, culminating in the two World Wars of the 20th century? How many people killed during all those conflicts? To prevent more of the same is the whole point of the Euro, but maybe, as...

http://www.espenhaug.com/black_scholes.html

What's a "partial default"? In general, there's a set of events that are supposed to legally trigger CDS. Restructuring, re-denomination, missed coupon, etc... However, ultimately the decision falls to ISDA/committee of mkt participants and, finally, courts. That's what makes sov CDS into...