tag:blogger.com,1999:blog-53246864840716464.post7890901464770795024..comments2024-02-29T00:46:38.800-08:00Comments on Washingtons Blog: More Proof that Credit Default Swaps Caused the "Credit Crisis"Unknownnoreply@blogger.comBlogger3125tag:blogger.com,1999:blog-53246864840716464.post-24475626350606337822009-05-26T22:15:33.613-07:002009-05-26T22:15:33.613-07:00I read the CDS's are in the quadrillion range. Wh...I read the CDS's are in the quadrillion range. What a setup. How did that happen "on accident"??Laura Lee - Grace Explosionhttps://www.blogger.com/profile/10002267385228111639noreply@blogger.comtag:blogger.com,1999:blog-53246864840716464.post-12820157619971996262009-05-26T16:15:41.008-07:002009-05-26T16:15:41.008-07:00Merlin, I don't necessarily disagree. CDS are the...Merlin, I don't necessarily disagree. CDS are the gun, but someone used the gun to commit murder.Washingtons Bloghttps://www.blogger.com/profile/10891277931441055038noreply@blogger.comtag:blogger.com,1999:blog-53246864840716464.post-30617308048984499332009-05-26T15:54:25.525-07:002009-05-26T15:54:25.525-07:00Well, CDS are not the problem...they are a _sympt...Well, CDS are not the problem...they are a _symptom_ of the problem. The real problem as I see it has basically two parts: 1. fractional reserver lending and 2. the political establishment has essentially merged with the banking system. These two factors combined prevent banks from booking losses (many of them should in fact be out of business). In other words, its the fact the contracts can't be torn up (as they should), not the contracts themselves that are the problem.Merlin Moncurehttps://www.blogger.com/profile/07784270014334369640noreply@blogger.com