Home › Forums › Financial Markets/Economics › Credit Default Swaps
- This topic has 40 replies, 6 voices, and was last updated 16 years, 3 months ago by
barnaby33.
-
AuthorPosts
-
September 14, 2008 at 5:37 PM #13824September 14, 2008 at 7:46 PM #270184
HLS
ParticipantThese have the potential to unwind the entire financial system as we know it…
Imagine if you bought an insurance policy from Company A, because they were solid and well capitalized, HOWEVER Company A then sold it to a weaker company, who then sold it to others.
Today, you cannot even find out who you are actually insured by.
CDS give them the right to do that.
In another twist, YOU as the insured can sell the policy also, if you can find a buyer.
This is so complex, people won’t grasp the potential consequences.
Regarding subprime loans, most people still have no clue what one is.
We are closer to the financial equivalent of Red at the airports.
September 14, 2008 at 7:46 PM #270499ParticipantThese have the potential to unwind the entire financial system as we know it…
Imagine if you bought an insurance policy from Company A, because they were solid and well capitalized, HOWEVER Company A then sold it to a weaker company, who then sold it to others.
Today, you cannot even find out who you are actually insured by.
CDS give them the right to do that.
In another twist, YOU as the insured can sell the policy also, if you can find a buyer.
This is so complex, people won’t grasp the potential consequences.
Regarding subprime loans, most people still have no clue what one is.
We are closer to the financial equivalent of Red at the airports.
September 14, 2008 at 7:46 PM #270420ParticipantThese have the potential to unwind the entire financial system as we know it…
Imagine if you bought an insurance policy from Company A, because they were solid and well capitalized, HOWEVER Company A then sold it to a weaker company, who then sold it to others.
Today, you cannot even find out who you are actually insured by.
CDS give them the right to do that.
In another twist, YOU as the insured can sell the policy also, if you can find a buyer.
This is so complex, people won’t grasp the potential consequences.
Regarding subprime loans, most people still have no clue what one is.
We are closer to the financial equivalent of Red at the airports.
September 14, 2008 at 7:46 PM #270423ParticipantThese have the potential to unwind the entire financial system as we know it…
Imagine if you bought an insurance policy from Company A, because they were solid and well capitalized, HOWEVER Company A then sold it to a weaker company, who then sold it to others.
Today, you cannot even find out who you are actually insured by.
CDS give them the right to do that.
In another twist, YOU as the insured can sell the policy also, if you can find a buyer.
This is so complex, people won’t grasp the potential consequences.
Regarding subprime loans, most people still have no clue what one is.
We are closer to the financial equivalent of Red at the airports.
September 14, 2008 at 7:46 PM #270472ParticipantThese have the potential to unwind the entire financial system as we know it…
Imagine if you bought an insurance policy from Company A, because they were solid and well capitalized, HOWEVER Company A then sold it to a weaker company, who then sold it to others.
Today, you cannot even find out who you are actually insured by.
CDS give them the right to do that.
In another twist, YOU as the insured can sell the policy also, if you can find a buyer.
This is so complex, people won’t grasp the potential consequences.
Regarding subprime loans, most people still have no clue what one is.
We are closer to the financial equivalent of Red at the airports.
September 14, 2008 at 8:18 PM #270199Bubblesitter
ParticipantWarren Buffet called Derivatives “Weapons of Mass Destruction”.
September 14, 2008 at 8:18 PM #270513ParticipantWarren Buffet called Derivatives “Weapons of Mass Destruction”.
September 14, 2008 at 8:18 PM #270435ParticipantWarren Buffet called Derivatives “Weapons of Mass Destruction”.
September 14, 2008 at 8:18 PM #270438ParticipantWarren Buffet called Derivatives “Weapons of Mass Destruction”.
September 14, 2008 at 8:18 PM #270487ParticipantWarren Buffet called Derivatives “Weapons of Mass Destruction”.
September 14, 2008 at 8:23 PM #270523ParticipantMore on Buffett’s comments on Derivatives, excerpt from Berkshire Hathaway’s annual report
http://www.fintools.com/docs/Warren%20Buffet%20on%20Derivatives.pdf
September 14, 2008 at 8:23 PM #270497ParticipantMore on Buffett’s comments on Derivatives, excerpt from Berkshire Hathaway’s annual report
http://www.fintools.com/docs/Warren%20Buffet%20on%20Derivatives.pdf
September 14, 2008 at 8:23 PM #270445ParticipantMore on Buffett’s comments on Derivatives, excerpt from Berkshire Hathaway’s annual report
http://www.fintools.com/docs/Warren%20Buffet%20on%20Derivatives.pdf
September 14, 2008 at 8:23 PM #270210ParticipantMore on Buffett’s comments on Derivatives, excerpt from Berkshire Hathaway’s annual report
http://www.fintools.com/docs/Warren%20Buffet%20on%20Derivatives.pdf
-
AuthorPosts
- You must be logged in to reply to this topic.