[counterpunch]

Add retroactively outlawing Credit Default Swaps to that list, which would immediately nullify the trillions of dollars of debt these banks owe to speculators.

[wideawake]

You don’t know how CDS contracts work. Stop talking nonsense.

[org.whodat]

Add retroactively outlawing Credit Default Swaps to that list, which would immediately nullify the trillions of dollars of debt these banks owe to speculators.

But if you do that there will not be a bailout a couple of years down the road. LOL

[supercat]

Add retroactively outlawing Credit Default Swaps to that list, which would immediately nullify the trillions of dollars of debt these banks owe to speculators.

The problem isn't that the banks owe speculators for CDS's, but rather that speculators sold lots of CDS's to banks and now owe the banks huge sums of money that they're never going to pay.

Suppose Nocturnal Airways Insurance sells a hundred flood insurance policies for $100,000 each in a certain area, at a cost of $1,000/year; the company has $1,000,000 in assets. Everything will be great until there's a flood. Once the flood hits, home owners will find themselves $90,000 short. Would the solution to the problem be to retroactively void the flood insurance?

[staytrue]

Add retroactively outlawing Credit Default Swaps to that list,

yeah and retroactively give the US back to the indians or maybe do that 40 acres and mule thing for the blacks or maybe give back all the money gambled away at vegas back to the schmucks who were stupid to go there.