Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : GOPwinger Lies/Distortions/Omissions/Perversions of Truth -- Ignore unavailable to you. Want to Upgrade?

To: geode00 who wrote (140867)	10/11/2008 7:08:18 PM
From: Lizzie Tudor	1 Recommendation Read Replies (1) \| Respond to of 173976

It seems to me that it would have been infinitely cheaper to arrest the rate of foreclosures which would have mitigated some of the insurance problems while simultaneously unwinding these insurance markets by regulating them. I don't think so because the actual default rate on many of these bonds is around 25%. The reason they are trading for so low is only because nobody knows how to value the underlying mortgages. The point is the mortgages are not nearly as bad as the debt. The CDSs are worthless of course and imho, swaps should be outlawed or considered bona fide insurance contracts at which point reserves would be required.