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To: Gemlaoshi who wrote (74889)2/18/2008 10:39:42 PM
From: Chispas  Read Replies (1) | Respond to of 116555
 
Gemlaoshi, thank you for adding....

Agreed, "swaps are not insurance"....

Reason is leverage cannot be "insured"....

The swaps are "contracts"....

Rough times ahead that will be hard to imagine....

Chispas



To: Gemlaoshi who wrote (74889)3/29/2008 10:12:05 AM
From: 10K a day  Respond to of 116555
 
> When the **it finally hits the fan, swap counterparties are not going to go BK honoring those contracts. The response will be "so sue me and see what you get". At some point the financial burden outweighs the legal risk and the settlement system will seize up.
<<

Yes.

Not unlike owing 450K on a 210K house. It makes no sense.