Time To Get Back To Reality

Go BORAT!!! California default swaps are trading at 100 basis points above Borat Home Country of Glorious Nation. what that means for non-finance ppl is that the market expects California to default before Borat's country.

excerpt:

California's debt is seen by investors as riskier than Kazakhstan's, according to Bloomberg News. Five-year credit default swaps tied to California's debt, which are a key measure of the market's belief in the likelihood of default, are actually trading at 100 basis points above those of Kazakhstan. In other words, the market believes a developing country of just 15.7 million people is actually less likely to default on its debt than California, which makes up the eighth-largest economy in the world.