Comments on: Credit Default Swaps: $60 Trillion of Bullshit http://dearscience.org/2008/10/07/credit-default-swaps-60-trillion-of-bullshit/ Seattle's Only Scientist Sat, 12 May 2012 05:47:48 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Steve Wu http://dearscience.org/2008/10/07/credit-default-swaps-60-trillion-of-bullshit/comment-page-1/#comment-432 Steve Wu Mon, 16 Feb 2009 09:59:16 +0000 http://dearscience.org/?p=472#comment-432 Great article- almost explains a few thing to me. Almost. But it doesn't tell me what a bond is. And also, I don't quite understand the analogy of the car insurance... what would be the "accident" in the case of WaMu? Thanks! Great article- almost explains a few thing to me. Almost.
But it doesn’t tell me what a bond is. And also, I don’t quite understand the analogy of the car insurance… what would be the “accident” in the case of WaMu?

Thanks!

]]> By: Perry Belcher http://dearscience.org/2008/10/07/credit-default-swaps-60-trillion-of-bullshit/comment-page-1/#comment-362 Perry Belcher Thu, 09 Oct 2008 12:52:56 +0000 http://dearscience.org/?p=472#comment-362 The real news is that there are an estimated 20-30 swaps that have been sold for every bad mortgage in America. It's like insuring a house 20 times. It pays to burn it down. Hedge funds have ran a scam here of epic size and will no doubt make history. - Perry Belcher The real news is that there are an estimated 20-30 swaps that have been sold for every bad mortgage in America. It’s like insuring a house 20 times. It pays to burn it down. Hedge funds have ran a scam here of epic size and will no doubt make history. – Perry Belcher

]]> By: Jason http://dearscience.org/2008/10/07/credit-default-swaps-60-trillion-of-bullshit/comment-page-1/#comment-356 Jason Tue, 07 Oct 2008 21:42:27 +0000 http://dearscience.org/?p=472#comment-356 Do you have a Private mortgage insurance (PMI) policy? If you do have one your PMI insurer passes their risk to others by bundling 100 policies together and selling them as a credit default swaps (CDS). They do this in order to protect themselves by large payment to mortgage providers such as insurers in the event your home is repossessed. In the mortgage industry this has been the case for decades. If you bought a PMI to protect your lender then you are building the CDS market. To avoid this put at least 20% down on your home or pay what it takes now to get rid of the PMI policy. http://nomedals.blogspot.com Do you have a Private mortgage insurance (PMI) policy? If you do have one your PMI insurer passes their risk to others by bundling 100 policies together and selling them as a credit default swaps (CDS). They do this in order to protect themselves by large payment to mortgage providers such as insurers in the event your home is repossessed. In the mortgage industry this has been the case for decades. If you bought a PMI to protect your lender then you are building the CDS market. To avoid this put at least 20% down on your home or pay what it takes now to get rid of the PMI policy. http://nomedals.blogspot.com

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