Quote:
Originally Posted by spence
I'm sorry to have to tell you, but rather how the financial companies gamed the system so they wouldn't have to keep capitol on hand to cover these debts if they defaulted, and the frenzy that followed as everyone wanted to cash in on this hot commodity.
These "credit default swaps" as I've come to learn were completely unregulated by the us government and had grown to a $60+ TRILLION market.
The lenders that are crashing first were heavily invested in this scheme, and they probably deserve to die, but not at the expense of our entire economy.
-spence
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maybe somebody, likwid, whoever, can tell me how this works
http://en.wikipedia.org/wiki/Credit_default_swap