saintshawn29

Hypocritical? Einhorn Likens CDS to Asbestos

In the past, people have used these derivative tools as insurance for their vested interest...and I guess you could say the firms that profited off them were serving their ONLY interest...making $$ at any cost. How can you legitamize an industry that rakes in profits for years (both sides) but when shit hits the fan and one side of the contract can't pay, the taxpayers bailout (I hate that word, I know) the defunct industry.
I compare it to writing millions of put option on a stock that doesn't even have a million shares. When things go your way you make buku-bucks, but when it comes time for the put writer to pay up...they throw their hands in the air and yell for Uncle Sam aka Joe Blow Tax Payer to mop up their mess.
Think about it...it is legal to profit off of the downside of a credit instrument through a CDS and simultaneously short the instrument. I may be a bit wet behind the ears, but to me this is NOT a solid product.

Bank Credit: The Worst of the Tightening Is Over

I would love to see that chart from 1950 to the present

Goldman Stockholders - What Chumps

Might want to check out your math on % of profits...not even close to 50% from their "brand name" :)...

North American and European Bank Rankings - September 2009

Lets not forget that a massive wave of forclosures from failed temporary debt restructure plans will hit in mid-2010 - 2011...When the forclosure wave hits, prices on houses/commercial properties securing loans will drop even further, forcing banks to write down their assets. Bank earnings/liquidity will hurt severely in the years to come...even with the Fed doing anything possible to prop them up.