CDS's were treated like puts but at just a fraction of the cost. Thus, allowing someone a lever with which to fund the short sales on a security.
"The fact that CDS allowed you to effectively short a credit you didn’t own was not particularly harmful." Yeah, right. If it was not harmful, there shouldn't be a relationship precrash to the number of CDS's on a company and the eventual outcome for said company.
The Coming Crash of 2008: A Result of Overleveraging [View article]
Seems we are losing the state power battle as well. I'm pretty sure Mr. Bush hasn't extended me any NEW rights and I know for sure he has taken some away and feels that HE is "the decideder."
Housing Market Tracker - Will Thornburg Sink or Swim? [View article]
Your theory is all well and good prospector, except the whole problem with the markets is that people don't want to lend other people money right now. They are hoarding capital and they will suck it out of anywhere they've lent it where they think they might be about to lose it.
Selling Over? I'm Just Not Buying It. [View article]
Well, home prices are UP here in Oklahoma. Employment is fine, cities are growing quickly.
I don't think people are getting foreclosed on or missing payments on loans. Home sales were down 5% year over year, but previous year was alltime record and we had huge ice storm in December, so no concerns, basically growing faster than ever.
If that is what it is like here, I hardly think we have a global recession occuring due to a US problem which can't even affect my state.
Are CDS a Good Thing? [View article]
On Apr 26 07:42 PM William Cowie wrote:
> Can someone prove a CDS is different from a simple insurance policy?
If I game the system on an insurance company it is called Fraud. If you game the system with a CDS and shorting it is ignored.
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Are CDS a Good Thing? [View article]
"The fact that CDS allowed you to effectively short a credit you didn’t own was not particularly harmful." Yeah, right. If it was not harmful, there shouldn't be a relationship precrash to the number of CDS's on a company and the eventual outcome for said company.
Real Estate Lending Growth, 2003-2008 [View article]
Interestingly to me, the chart shows that lending hasn't really dropped off, just stopped going up.
Hyperinflation, Here We Come [View article]
The Coming Crash of 2008: A Result of Overleveraging [View article]
Housing Market Tracker - Will Thornburg Sink or Swim? [View article]
Visa IPO to Help Recapitalize U.S. Banks [View article]
Selling Over? I'm Just Not Buying It. [View article]
I don't think people are getting foreclosed on or missing payments on loans. Home sales were down 5% year over year, but previous year was alltime record and we had huge ice storm in December, so no concerns, basically growing faster than ever.
If that is what it is like here, I hardly think we have a global recession occuring due to a US problem which can't even affect my state.