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Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?

To: DuckTapeSunroof who wrote (29741)	10/3/2008 5:24:50 PM
From: TimF	Read Replies (1) \| Respond to of 71588

yet I believe that it certainly qualifies for the description of 'orders of magnitude bigger then the American sub-prime real estate market securitizations', as the Credit Default Swap market is GLOBAL, and can be applied to EVERY market sector, not just real estate. Sub prime is just the big area of problem for real estate not the only area, and real estate problems are not limited to the US. Also real estate is where you had a highly leveraged bubble, in relatively illiquid investments (relatively illiquid even in the best of times, its not like you trade houses on line for $8 a trade). Its where the main source of all the problems. The notional value of the instruments is far less of a concern then the actual amount of capital being lost.