6/21/2010

"Recent comparisons made between some American states' finances and those of Greece are exaggerated," according to The Economist. However, credit default swap spreads, "which measure investors' expectations of default, are wider for some American states than for some of the euro zone's other peripheral economies." The magazine's daily chart shows that CDS spreads on California and Illinois municipal bonds are wider than those on the sovereign debt of Portugal and Ireland.

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