kezdox (November 30, 1999 at 12:00 am)

FRAUD

mavrick0ck (November 30, 1999 at 12:00 am)

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

jjunit207 (November 30, 1999 at 12:00 am)

.. 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!!!

jjunit207 (November 30, 1999 at 12:00 am)

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.

swassontelus (November 30, 1999 at 12:00 am)

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.

mikek241 (November 30, 1999 at 12:00 am)

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!!!!!

Vveljac (November 30, 1999 at 12:00 am)

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.

bio84 (November 30, 1999 at 12:00 am)

perfect explanation

PureTamil (November 30, 1999 at 12:00 am)

people need to go to jail for this collapse!

thenumber13dotnet (November 30, 1999 at 12:00 am)

@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