Credit Default Swaps 2
Loading...
Link to this comment:
Top Comments
All Comments (171)
-
FRAUD
-
i have a beginers questions. hedge fund 1 and insurance company 2 have a little side bet that company B is going to default, but neither of them have any connection to company B, or am i missing the connection here? also the hedge fund has taken out an insurance of 10bil but why is this? they are insuring themselves against something they have no part of since they didnt lend anything out. thanks
-
.. and if not by the European tax payers than by the Americas, Japanese, and/or Chinese. 2008 ALL OVER AGAIN!!!!
No one got punished in 08 for the bets they made and they did it again! Look at MF Global. Huge bets on greek debt bc they knew greece would not be allowed to default. Suprise greece got 50% haircuts, im sure all the execs shit their pants on that day, they didnt see that coming! The huge banks have the world by the balls.
Regulate the derivatives market! PLEASE!!!
-
the beauty of the whole CDS and derivatives market is that its too big to fail. If it does fail gameover for everyone! The derivatives market is unregulated and is currently exceeding its pre 2008 crash levels. Its almost at a quadrillion dollars, CRAZY!
The big bet now is europe. Tons of CDS on greek, italian, spanish, and portuguese debt. If europe defaults the CDS market will destroy the financial system (again). So its clear europe will be bailed out by the tax payers.
-
No different than the pyramid scheme we had with bottles of booze while in Engineering School. You only need 7 buddies to start and share the instant wealth at the '4th Level' of sucksalescomittment. Someone always gets screwed. You can't create something out of nothing. Peoples greed ultimately caused this chaos...and some will jump into a noose and others will simply be content and not even care as they simply didn't play the game in the first place.
-
Good video. But unfortunately more gov't regulation on these credit default swaps will not solve the problems of insolvency, that's like treating the symptom instead of the disease. This whole system is allowed to exist only b/c of the FED's easy credit policies and artificial fixing of the interest rates. If the money supply could not be manipulated so easily but instead was backed by a commodity standard, this whole ponzi scheme would not be able to exist in the first place. RON PAUL 2012!!!!!
-
You forgot to add another bracket, "Government ", and extend an arrow from Moody's giving % to political campaign's so the government would advice
to trust in Moody's judgement, as in to direct pension funds and all others
into taking their services. Because after all, there must be someone above Moody's who vouches for them, and gives them credit rating.
2 months ago 2
-
perfect explanation
-
people need to go to jail for this collapse!
3 months ago 2
-
@klrscout Im not sure of the laws in the USA however it is my understanding that one must have an interest before one can insure. So I could not insure against the death of my neighbour for example since I don't really have an interest in his/her life. But the stock market appears that it's ok to insure something you don't own. I believe this is what happened with Lehman Bros. Someone may be able to answer that better....<3
15 videos
Credit Crisis- 6:31More on Nash Equilibriumby khanacademy1,243 views
- 9:21Prisoners' Dilemma and Nash Equilibriumby khanacademy956 views
- 8:26Oligopolies, Duopolies, Collusion, and Cartelsby khanacademy367 views
- 8:54Monopolistic Competition and Long-Run Economic ...by khanacademy240 views
- 9:42Collateralized Debt Obligation (CDO)by khanacademy192,572 views
- 5:08Credit Default Swaps explained clearly in five ...by thebigscreen99,748 views
- 2:43Hilarious Commerial!!by slim2open27,486,971 views
- 9:54Introduction to Balance Sheetsby khanacademy116,778 views
- 2:33Re: US Debt Crisis - 2012 is only for Americaby thereplygirlsreviews103,752 views
- 11:11Understanding the Financial Crisis - very well ...by dardoush203,808 views
- 10:51A look inside hedge fundsby marketplacevideos140,450 views
- 9:09Renting vs. buying a home (part 2)by khanacademy90,956 views
- 3:29Basic Shortingby khanacademy16,284 views
- 11:26Bailout 1: Liquidity vs. Solvencyby khanacademy93,081 views
- 1:51Angry David Letterman Fires Employee Live On Th...by TELEVISIONARCHIVES1,831,299 views
- 9:54The Crisis of Credit - by Jonathan Jarvisby RIBI423094,284 views
- 5:17Credit Default Swaps Part 1by moneyandsociety3,515 views
- 10:12Banking 17: What happened to the gold?by khanacademy68,895 views
- 9:01Introduction to Bondsby khanacademy44,031 views
@Kaysersoze5 In this system the insurance company does not need to back up their guarantee with actual collateral thus enabling them to insure infinite amount of loans. Had the taken 100% of the interest by supplying the actual loan they are limited by the amount of assets they actually have
pierd 7 months ago 13
dear sal,
i have one question. why is the insurance company happy with a fraction of the interest received, when the insurance company is fully liable when the borrower defaults. the insurance company could also lend the money, get 100% of the interest and have the same risk profile on the transaction. am i missing something?
Kaysersoze5 1 year ago 12