The Big Kahuna - When Ponzi's Unravel

1. I heard the folks in DC have agreed on a $1.5 Trillion debt reduction and the US CDS spread widened to 56 basis points. Oh oh, the jig's up. The market says such measures aren't good enough. If the spread widens further tomorrow after an official announcement that the Republucans and Democrats have kissed and made up, then we are in a PERFECT STORM.

2. Once the bond market no longer believes in debt reduction legislation then we have the beginnings of the great unwind, where promised relief is simply met with violent disbelief.

3. The following are some wavelets in front of the Big Kahuna.

Thanks to zerohedge at: http://www.zerohedge.com/article/us-cds-jumps-highest-february-2010-debt-ceiling-worries