The Next Big Thing
Green Mtn
location: Observing the Progressive madness with considerably less amusement.
listening to: Grandchildren, the best reason for saving the future.
registered: 2004.04.03
posts: 2617
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How about Credit Default Swaps. $52B worth?
A credit default swap (CDS) is a contract in which a buyer pays a series of payments to a seller, and in
exchange receives the right to a payoff if a credit instrument goes into default or on the occurence of
a specified credit event (such as bankruptcy or restructuring). The associated instrument does not
need to be associated with the buyer or the seller of this contract.[1]
Originally used as a form of insurance against bad debts, these instruments became a tool for
financial speculation when the US Commodity Futures Modernization Act of 2000 specifically barred
regulation of these trades.
Wiki
–--
“Restriction of free thought and free speech is the most dangerous of all subversions.” Wm O. Douglas
“Restriction of free thought and free speech is the most dangerous of all subversions.” Wm O. Douglas
G
Green Mtn
(view)
How about Credit Default Swaps. $52B worth?
A credit default swap (CDS) is a contract in which a buyer pays a series of payments to a seller, and in
exchange receives the right to a payoff if a credit instrument goes into default or on the occurence of
a specified credit event (such as bankruptcy or restructuring). The associated instrument does not
need to be associated with the buyer or the seller of this contract.[1]
Originally used as a form of insurance against bad debts, these instruments became a tool for
financial speculation when the US Commodity Futures Modernization Act of 2000 specifically barred
regulation of these trades.
Wiki
–--
“Restriction of free thought and free speech is the most dangerous of all subversions.” Wm O. Douglas
“Restriction of free thought and free speech is the most dangerous of all subversions.” Wm O. Douglas
