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Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?


To: carranza2 who wrote (165090)6/16/2009 7:33:50 PM
From: robnhood  Read Replies (1) | Respond to of 313178
 
CDS are available to anyone. You do not have to hold the Underlying instrument. That is one of the causes of this great credit crunch. Much more CDS were sold than there were underlying obligations.



To: carranza2 who wrote (165090)6/16/2009 7:39:34 PM
From: Step1  Read Replies (3) | Respond to of 313178
 
I am with you there. How can paying 80% to insure 100% equals 400%???

80% of 29,000,000 is not 130,000,000

but hey, maybe this is the perpetual energy machine...



To: carranza2 who wrote (165090)6/17/2009 2:49:48 AM
From: Canuck Dave  Read Replies (1) | Respond to of 313178
 
Suspect they sliced and diced the insurance and sold it in little pieces to a wide variety of suckers, just like WS would do given the chance (which they did; in spades).

Death by a thousand CDO's, LOL.

CD