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Subject:  Re: Will the Bailout Plan Work? Date:  10/5/2008  11:17 AM
Author:  MegHammond Number:  257727 of 535076

That's why I'm worried about a CDS cascade, which the bailout doesn't address.


Would you lay out the consequences of a CDS cascade? All I can grasp is that it would be a Really Bad Thing.

I haven't seen anything which talks about new regulations for CDS, but I have seen reports of new CDS sales. Is that correct? To me that sounds like a doctor telling a Stage 3 alcoholic that the next drink will kill him and the patient responding by going to a bar.

What will it take to bring CDS under control (defined as not posing a ginormous risk to the global financial system)?
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