Wednesday, 2 November 2011
The CDS's are intended as "insurance". If the insurance ends up no good, you're exposed, not covered.
Our ponzi financial wizards acting with their blinders fully on (or maybe not), in an effort to manage risk individually, have ended up creating a disaster of "systemic risk".
Risk doesn't go away, it's only transferred.
If CDSs had never been allowed, people wouldn't have taken on so much risk in the first place.
all the best
I thought it was France's banks that carried most of the Greek debt, why are US banks hit the hardest by the CDS fraud? >
MF Global got busted because credit default swaps did not work. MF Global had their Greek and Euro bond position covered by credit default swaps that they thought would protect them. SURPRISE!
They did not work because the Greek situation of a 50% haircut was given another name than “default” by a select group of Banksters and related parties.
97% of all credit default swaps written are carried by the major US banks. That means 97% of all the credit default swaps are the US usual Bankster suspects that swore to be more conservative in their ways.
If the Greek referendum is determined to represent a Greek default, major US banks will return to public insolvency and be bailed out yet another time because of the fraudulent nature OTC derivatives.
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