To: Toddsterpatriot
So you buy a CDS on some IBM debt. How do you burn down the house of IBM? If you have enough CDS's, more than the value of IBM, you could do lots of things to make IBM fail.
For the case of CDS's on MBS's, you just wait for the next recession.
76 posted on
09/27/2008 5:08:17 PM PDT by
PapaBear3625
("In a time of universal deceit, telling the truth is a revolutionary act." -- George Orwell)
To: PapaBear3625
If you have enough CDS's, more than the value of IBM, you could do lots of things to make IBM fail.For example?
For the case of CDS's on MBS's, you just wait for the next recession.
Sounds easy. Makes you wonder why anyone would sell a CDS, seeing as you think it's a guaranteed winner.
83 posted on
09/27/2008 5:27:35 PM PDT by
Toddsterpatriot
(Let me apologize to begin with, let me apologize for what I'm about to say....)
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