Quote:
Originally Posted by teomaxxx
so what is going on right now, that taxpayer aka AIG is paying CDS, while there isnt enough money to pay all CDS at all in the longer timeframe, just look on their size.
a lot of entities just speculate with CDS and dont own any bonds they would need insurance for - and the taxpayer money goes there too.
sooner or later, it will have to end. either US goverment will choose some kind of way how to sort this mess out or they can try to save every "too big to fail" institution and fail later with them. those idiots cant even make some estabilished CDS trading system and make some rules, like you cant issue CDS when you dont have a money to pay it off (like AIG was doing before).
the lack of sound responsive actions and crooks running the show make all sure to have a repeat of GD2.
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here is some great proposal from a one of the most knowledegble guys about current crises (I made several 100% percents on some of his short picks, when every idiot were shouting "buy, buy, buy" or goverment officals without 0 clue were telling us, that this is a bottom):
http://www.riskcenter.com/story.php?id=17904
the way out of current crises depends (in the half) on the solution how to solve CDS protection bets = they are the biggest problem which can cause currency crises all over the world, if goverments will try to backstop the players. we can be lucky to have only economical crises, if they stop this monster at the begining.