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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?


To: Wyätt Gwyön who wrote (225353)10/18/2009 5:50:00 PM
From: GraceZRead Replies (1) | Respond to of 306849
 
oh, there was another problem: counterparties. some, like Lehman, went BK and didn't pay up. so bets had to be spread around, or novated, or you had to take out CDSs on your counterparties with yet other counterparties...



This is always the problem with winning big betting on the end of the world, counterparty failure, you win big and still lose.