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barnaby33.
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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 #270499HLS
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 #270420HLS
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 #270423HLS
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 #270472HLS
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 8:18 PM #270199Bubblesitter
ParticipantWarren Buffet called Derivatives “Weapons of Mass Destruction”.
September 14, 2008 at 8:18 PM #270513Bubblesitter
ParticipantWarren Buffet called Derivatives “Weapons of Mass Destruction”.
September 14, 2008 at 8:18 PM #270435Bubblesitter
ParticipantWarren Buffet called Derivatives “Weapons of Mass Destruction”.
September 14, 2008 at 8:18 PM #270438Bubblesitter
ParticipantWarren Buffet called Derivatives “Weapons of Mass Destruction”.
September 14, 2008 at 8:18 PM #270487Bubblesitter
ParticipantWarren Buffet called Derivatives “Weapons of Mass Destruction”.
September 14, 2008 at 8:23 PM #270523Bubblesitter
ParticipantMore 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 #270497Bubblesitter
ParticipantMore 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 #270445Bubblesitter
ParticipantMore 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 #270210Bubblesitter
ParticipantMore on Buffett’s comments on Derivatives, excerpt from Berkshire Hathaway’s annual report
http://www.fintools.com/docs/Warren%20Buffet%20on%20Derivatives.pdf
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