Vikram Saxena

Great Depression Not Imminent, But Inevitable

The author's basic premise is that the lack of insurance providers will significantly limit business as usual in the more riskier markets/projects where CDS were needed to hedge risk. To me this is another way of saying that investors will be a lot more prudent in their investments and do their own due diligence instead of just buying CDS to hedge a part of the risk.

What would really help is an estimate of the size of CDS secured projects with relations to the total number of projects. Is that size significant enough to cause a depression?