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Politics : John McCain for President -- Ignore unavailable to you. Want to Upgrade?

To: Don Hurst who wrote (5814)	11/8/2008 12:01:29 AM
From: Sr K	Respond to of 6579

It doesn't change your correct argument, but DTCC says they see 90% of the CDS and of the $55T there is a net of about $33T because of offsetting positions.

To: Don Hurst who wrote (5814)	11/8/2008 12:48:00 AM
From: RetiredNow	Respond to of 6579

Don, your discussion of swaps is too advanced for this thread. This thread thinks Palin was a smart person. Keep that in mind when you move to advanced topics. They may not be understood here. ;)

To: Don Hurst who wrote (5814)	11/8/2008 10:49:46 AM
From: Jim S	Respond to of 6579

Sounds like we mostly agree, Don. Except for what began the cascade that led to our current credit mess. When the bundled mortgage derivitives (swaps?) couldn't be valued because the defaulted subprimes contained within them couldn't be identified, nobody wanted to buy the derivitives because they couldn't be valued. So, while the actual number of defaulted subprime loans may have been fairly small overall, they did in fact precipitate the widespread distrust of the entire credit trading industry. I don't contend that the whole house of cards wouldn't have fallen anyway, but the seed that began the cascade of failures we see now was in fact subprime loans. Sorry to be late getting back to you. I'm finishing up building a house, and my time for keyboarding is pretty limited.