http://www.wikio.co.uk Sodium Haze: What caused the Financial Crisis? - Part 2

Wednesday, 8 June 2011

What caused the Financial Crisis? - Part 2

As promised - some more videos explaining just what the hell happens inside all those financial derivatives.

Today we look at Credit Default Swaps.

All videos from the good people at Khan Academy.

As far as Haze is concerned the CDS trade is gambling - and the US government had to bail out the biggest bookie (AIG) when it all went tits up in 2008.

Anyway - draw your own conclusions - The Haze will say more later in the month.

 

Hey wait a minute - so you can place these side bets even if you don't own the security!?








Amazing isn't it? And I bet you imagined it was all pukka and respectable? Well maybe not.
 
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