I wrote a long post about credit default swaps and their evil effect on this whole mess. But it is just too disgusting to put up. Just read these articles. They tell you who are the greedy bastards who may very well bring down the world’s economy.
Here is one thing that staggers me, from American Public Media’s Marketplace:
BOB MOON: OK, I’m about to unload some numbers on you here, so I’ll speak slowly so you can follow this.
The value of the entire U.S. Treasuries market: $4.5 trillion.
The value of the entire mortgage market: $7 trillion.
The size of the U.S. stock market: $22 trillion.
OK, you ready?
The size of the credit default swap market last year: $45 trillion.
KAI RYSSDAL: That’s a lot of money, Bob.
The big article is from 60 minutes which looked at this debacle. If it had just been mortgages, we could have dealt with it. But these idiots made side bets and their loss will harm us all. Every one of those guys should be forced into a perp walk.