Recent

% | $
Quotes you view appear here for quick access.

ProShares Ultra Financials Message Board

  • lzymoney01 lzymoney01 Oct 9, 2008 2:22 AM Flag

    CDS Credit swap Defaults- The problem

    its like you have a neighbor with a kid that plays with matches, and your able to buy insurance on his house, you tell your poker buddies about it, and they also buy insurance on the house, when the house burns down now the insurance company pays out 4 million instead of 400,000,

    Credit Swap Defaults are up to 62 Trillion,
    I think its based on 6-10 Trillion, but because there is no regulation if something
    fails, like a pool of subrime mortgages, then AIG or Bear Stearns, or Lehman has a contract to cover all the people that bought the CDS on that pool of mortgages,

    WHAT IS THE FED DOING ABOUT THIS?

    Can anyone ad insight?

    How big is this problem going to be?

    SortNewest  |  Oldest  |  Most Replied Expand all replies
 
UYG
78.92+0.14(+0.18%)Aug 3 4:00 PMEDT