Financial Crisis

During the last few months things are changing to a different trends.
1. Spreads of CDS: After sub prime crisis followed by Deeper Credit Default swaps fail out, spreads for CDS have gone up from mere 0.05% to almost 9 to 10%. Every investor started taking the consideration of default ratings as prime criteria.
2. US Debt to GDP and US Fiscal Deficit Ratio: Official Debt to GDP ratio is now going to 60% from earlier 40% before financial crisis. Same way US fiscal deficit used to be 3% during 2008 to 12% in the year 2009
3. China's investment in US T bills. Two thirds of China forex deposits are in US T bills. Now, US is pursuing China to increase the China's amounts in US T bills. China is also looking at domestic industry growth based on benefits of Imports
4. USD as universal currency: In spite of financial crisis, USD is still sustaining as world Reserve currency and getting Strengthened