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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?


To: TigerPaw who wrote (424948)10/12/2008 6:18:19 AM
From: Road Walker  Read Replies (2) | Respond to of 1577593
 
The market for such risky loans would have been saturated quickly if not for the uncapitalized Credit-Default-Swap psudo-insurance.

Exactly. Even now, I don't think the major part of the problem is the mortgages... it's more likely the estimated $62Trillion in CDSs. $62Trillion in fantasy stuff that didn't exist, what, 10 years ago? Credit default swaps are truly the black hole of the world market and they are sucking everything down into them.