Thank you, IMissPresidentReagan, for volunteering to post the thread tomorrow. Please let Chuck54 know by FreepMail that you want to do it. He gave me the job when I volunteered in January. I have been doing it fairly regularly since then. I will be back on Friday.
I’ll be glad to help out anytime! You really do a great service by posting. I don’t know if I could go a day without Rush or his thread. :)
WnL mode
In Light of Crisis, Common Trading Practice Looks Risky
Friday, October 3, 2008
http://www.washingtonpost.com/wp-dyn/content/article/2008/10/02/AR2008100203890.html
Widely used by banks, hedge funds and other investors, credit-default swaps’ total outstanding value likely exceeds $58 trillion. But because the markets are unregulated, there is no guarantee that sellers of swaps would pay their obligations.
The turbulence in the credit default market may indicate that the financial markets’ problems will not be resolved by the Bush administration’s $700 billion plan to purchase troubled mortgage assets. Even though many in the markets expect Congress to pass the rescue effort today, the credit-default swap markets continue to indicate turmoil ahead for financial firms.