Research123

Demonic Short Sellers

If you can prove your assertion (show your sources and work) I would be more inclined to believe you were on the up and up. Instead I think you are just one more short seller trying to change the subject.

Demonic Short Sellers

Hence the need for complete transparencey, particulary with respect to statements about the market or individual companies. When a noted hedge or mutual fund manager publlically opines that comapny A is (a) a great investment, or (b) is headed for the crapper, the opiner should be required to disclosue whether they are long or short the company, including the impact of CDS positions.

Financial media should be required to disclose their sources and source exposure to the comapny on which they are providing data. Period.

Demonic Short Sellers

The real problem with the CDS market is that buyers don't need to have an insurable interest when buying or selling a CDS. In the bad old days of individual insurance, this lack of insurable interest lead to speculators buying life insurance on some unsuspecting soul, then hiring someone else to do in the insured so that the policy ownere could collect.

Kind of like what seems ot be going on in the CDS space today, except that buyers of CDS coverage don't need to hire intermediaries to kill the insured. All they need to do is give away stories for free to the media who will happilly help kill any organization in return for eyeballs.

A CDS is not de facto a bad thing, but without transparency and a clear insurable inteerest, the CDS marklet is driving lots of unintended and perhaps quite evil consequences.