This would seem to explain the reason Bear Stearns was bailed out, and why the survival of these sort of institutions is so critical in our economy these days… It’s sick and twisted, in my opinion. I think I’d rather stick to buying lottery tickets than financial derivatives.
http://en.wikipedia.org/wiki/Credit_default_swap
“Warren Buffett famously described derivatives bought speculatively as [...]
Entries from April 2008
credit default swaps
April 3rd, 2008 · No Comments
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