[org.whodat]

A CDS is essentially a bet, just like betting on horses or pro-hockey and should be treated like betting regulatory-wise. If you buy or take out a CDS on a mortage you actually OWN, then it could be considered an insurance. Once you start taking out swaps on stuff someone else owns, it’s not a financial instrument any longer.

True and the results of the meeting of the G-20 was that these will be regulated. Since they are not worth spit. I would say ending them would be the best. I think that what will be the outcome from the democrats.

[SwedishConservative]

True and the results of the meeting of the G-20 was that these will be regulated. Since they are not worth spit. I would say ending them would be the best. I think that what will be the outcome from the democrats.

We don't need more regulation, there's plenty already. Just call CDS's for what they are: it's a form of gambling and whoever wants to issue them better have a gaming license. And you better believe the casinos will be a lot better at setting the odds than the investment bankers. Added benefit is that anyone who tries to unduly influence the market will get their knee-caps shot off by angry bookmakers. Problem solved, everybody wins.