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Politics : Liberalism: Do You Agree We've Had Enough of It? -- Ignore unavailable to you. Want to Upgrade?


To: Geoff Altman who wrote (50389)10/6/2008 2:16:49 PM
From: Kenneth E. Phillipps  Read Replies (4) | Respond to of 224717
 
Swaps were the core of the problem. When the investment banks issued mortgage backed securities, they would sell an individual insurance contract insuring against a credit default. These were called swaps but the swaps were not backed by insurance reserves. There were about $60 Trillion of swaps issued.