Quebec is better governed than the US. Why shouldn't the market price its bonds accordingly?

There's been a certain amount of hilarity (here, here, and no doubt elsewhere in the English-speaking media) about this story:

Tim Backshall, chief strategist at Credit Derivatives Research, said the price implied that the US was more likely to default on its obligations than Japan, Germany, France, Quebec, the Netherlands and several Scandinavian countries. Traders said the CDS market for US debt was illiquid and it was hard to see evidence of increased concern over US creditworthiness in broader market prices.

(Emphasis added)

I've been here long enough to reply, with a certain amount of pride: suck it up, losers. Give us a call when you get a decent government. We've been here for 400 years, we can wait.

(Hat tip to Stackelberg Follower)

Comments

[Manny, in Moncton]

I read the comments in The Economists. Clearly, they know very little about Quebec or Canada.

Did someone else noticed the huge increase in equalization payments to Quebec since Harper came in? From 4.8G in 05-06 to 8.0G in 08-09. Could this be why they claim in London that Quebec does not run a deficit?

Sources: http://www.fin.gc.ca/FEDPROV/mtpe.html