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Macro Musings with Jim Leitner

The Market Huddle

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The Market's Response to the Budget Deal

Do you think the budget deal is inevitably going to get done or do you think that this is an increasing chance that there's a stalemate here? Well, so it's most likely going to getting done because let's face it, even if you believe that there're a one third chance of them technically defaulting, that still means that there’s a two third chance that they don't and that we have a deal. But what does that mean that market is expected in terms of, you know, if you look at the CDS, they're pricing in a 4% chance of it occurring on which I'm lighter. Whether it's 10, 20 or even Jim suggested 25

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