Spain Credit-Default Swaps Surge to Record on Bank Bailout Woes!

• Credit Default Swaps (CDS) are financial derivatives and are simply insurance against default (in this case Spain and Spanish banks). It is sold largely by the major Illuminist banks. No one really knows how much $$ CDS is being held. It is definitely in the trillions of dollars. When Spain goes bust, I do not believe the banksters have the money to pay out on the insurance claims! All major western banks are essentially bankrupt! The Illuminist central banksters will create a massive amount of money out of thin air to bail themselves (ie. their bankster shareholders: the major western banks) out. This will trigger a global currency crisis. The Euro, UKP, JPY …. and finally the USD will all go down the toilet bowl of debasement. Got physical gold yet?
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  Spain Credit-Default Swaps Surge to Record on Bank Bailout Woes! 
  By Michael Shanahan, http://www.bloomberg.com/
  The cost of insuring against default on Spanish sovereign bonds rose to a record as the nation’s debt crisis deepened amid concern over bank bailouts. Credit-default swaps linked to the nation’s debt climbed 23 basis points to 583 at 11:44 a.m. in London, according to data compiled by Bloomberg. The Markit iTraxx SovX Western Europe Index of swaps on 15 governments rose seven basis points to 320.5. An increase signals worsening perceptions of credit quality.
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  Bank of Spain Governor Miguel Angel Fernandez Ordonez resigned a month early, handing over the task of convincing investors that Spanish banks won’t need an international rescue.Bankia group, the nation’s third-biggest lender which received 4.5 billion euros ($5.6 billion) of public funds in 2010, asked for another 19 billion euros on May 25.
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  “The pressure remains on Spain,” Elisabeth Afseth, an analyst at Investec Bank Plc in London, wrote in a note. “The focus remains on how the government is going to deal with the banking crisis.”
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  The cost of insuring bank debt also increased with the Markit iTraxx Financial Index linked to senior debt of 25 banks and insurers rising eight basis points to 299 and the subordinated index jumping 12.5 to 497.5. Swaps on Banco Santander SA, the biggest Spanish lender, jumped 15.5 basis points to 421 while contracts on Banco Bilbao Vizcaya Argentaria SA added 15 to 461.
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