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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Real Man who wrote (22049)	8/14/2009 12:41:59 PM
From: RockyBalboa	Read Replies (2) \| Respond to of 71456

600T sounds a quite a bit large. But then, I found a list with totals in contracts per company and saw several billions of bets on bonds of my employer, a tiny little F500 company riding. I think the list was on markit or creditex but i couldnt find it recently. The moral hazard inherent in CDS has been explained, at greater length and in greater clarity, by Willem Buiter. Markopolos' analogy isn't completely off, but in reality it is considerably more difficult to "burn down" the "house" in question. At best, CDS traders can load up on bonds and be obstructionist if the company has a difficult time making payments. It is problematic, however, and certainly worth further investigation, and a rule change would appear to be in order.