Credit Default Swaps 2

Subprime the Musical- Series of light-hearted podcasts designed to explain the Subprime Mortgage Crisis. To learn more visit:
www.subprimethemusical.wordpress.com
E-mail: moneyandsociety@gmail.com
This second part of the podcast explains what went wrong with the Credit Default Swap market, how the industry evolved into something more a betting industry, what the repercussions were for corporations that issued these swaps in the first place.

Category:

Education

Tags:

• Credit
• Default
• Swaps

[Jere616]

Yep, unrestrained greed. CDS mania is a lot like like the run up to the stock market crash of 1929 when everyone went into debt to speculate in the stock market, then couldn't pay off their use of the margin. That's one reason why the Commandment says, "Thou shalt not covet."

[glawrence9]

@jrod47 pls help me out here irod: is it all investment bankers profitting off these? How much do they have to put down? is insider trader rampant? what does the sec do about it? how come it isn't regulated? did clinton remove glass steagull why?

[jrod47]

Reading a really good book called The Big Short where they tell the story of some of the hedge fund type investors who knew to take CDOs from AIG and ended up making billions. Anyway, these videos are really helping fill in some of the holes in my understanding of how all this stuff works. Thanks!

[Tampa0123456789]

Wow this video was up loaded in 2009 its now almost 2012 and i have yet to see this level of explanation on any of those 24hours so called business news channel.

Anyway now i know why in the last 3 years Warren buffet was so cozy with Obama considering in the past i never saw him so openly involved in politics. his main thing is insurance but i though he was refering to the cave men geico sort of insurance.

I also just learned during the default scare summer2011 He owns Moody rating agency.