It will take six months for this to shake out.
In the meantime, the stock market will be worried.
On top of this, the Federal Reserve will start selling assets.
* * * * * J B K * * * * *
San Francisco
Feb. 8 (Bloomberg) -- A gauge of corporate credit risk climbed to the highest in three months amid investor concern that "contagion" from rising government deficits in Europe may spread to other assets.
Credit-default swaps on the Markit CDX North America Investment-Grade Index Series 13, which is linked to 125 companies and used to speculate on creditworthiness or to hedge against losses, rose 5.25 basis points to a mid-price of 107 basis points, according to broker Phoenix Partners Group. The index is at its highest since it was 107.02 basis points on Nov. 3, CMA DataVision prices show. The gauge typically increases as investor confidence deteriorates.
http://www.bloomberg.com/apps/news?pid=20601068&sid=a5YbzrznOjaU
