UnThreaded | Threaded | Whole Thread (1) | Ignore Thread Prev | Next
Author: jerryguru69 CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 62  
Subject: Zombie Banks = CDS payout? Date: 2/28/2009 12:13 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Understood that CDSs are for the most part casino bets on the failure of this or that. Many, including Fools, cryout to let C and BAC go insolvent, so that the good parts can be sold off to folks who can make mucho $$$ from them, and the bad parts be buried at taxpayer expense. Questions:
1) if C and BAC go insolvent, will this trigger $100B's in CDS payouts?
2) is it true that the bankruptcy of Lehman was the main trigger for current financial crisis, not because LEH paper became worthless, but because of the CDS's that bet on LEH going belly-up, trigger $100B's of CDS payouts by AIG that they could not really afford?
3) if #1 is true, then is it really true that some institutions are too big to fail, not because they are crucial, but because of the CDS payouts that will be triggered by their failure?
sorry if this is the wrong forum for this, but could not find a better spot.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (1) | Ignore Thread Prev | Next

Announcements

Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Economic Implications of Cuba
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement