wrote an interesting post today on
Here’s a quick excerpt
NY Times: First Comes the Swap. Then It’s the Knives Like a homeowner’s policy that insures against fire or flood damage, credit default swaps are intended to cover losses to banks and bondholders when companies that have issued debt are unable to pay it back. The nominal value of the insurance outstanding is now $62 trillion, up from $900 billion in 2000. During a Feb. 22, 2007, phone call, Paramax contends in the filing, it was informed by Mr. Rothman that “UBS set its marks on the basis o

Read the rest of this great post here