Today, we were alerted to the fictitious story written by Jacques Attali, who is formerly the top aide to French President Francois Mitterrand and the founding president of the European Bank for Reconstruction and Development: Imagining the worst-case scenario.
One message from this story is clear: the next financial time bomb will be Credit Default Swaps (CDS). As we said before in January this year, Potential global economic black hole: credit default swaps (CDS),
Note: we are not predicting that such a time bomb will explode. But this is another potential Black Swan, which Warren Buffets calls the ?financial weapons of mass destruction.?
That story however, has a happy ending that finishes within a 2-year time frame. We have grave doubts on that ending.
P.S. Note that we are not in agreement with all of Attali’s fictitious story. The CDS part of the story is the one that we want to highlight.
Tags: CDS, Jacques Attali
