leverage
such as these???
http://www.investopedia.com/terms/c/credit_default_insurance.asp?viewed=1
The world banking industry leveraged high risk mortgages and other "loans" to the tune of $56,000,000,000,000 (trillion)... 4 times the GDP of the US...
We'll all be paying for a loooonnnggg time...😡 😱
John L.
such as these???
http://www.investopedia.com/terms/c/credit_default_insurance.asp?viewed=1
The world banking industry leveraged high risk mortgages and other "loans" to the tune of $56,000,000,000,000 (trillion)... 4 times the GDP of the US...
We'll all be paying for a loooonnnggg time...😡 😱
John L.
Yes...
You could take out insurance on bonds... not so bad if you owned the bonds, but it was possible to take out insurance on someone else's bonds that you did not own, and then if they defaulted you would be owed the entire value of the bonds you never owned. Explains why AIG is a black hole of losses.
I think a law being passed that limits liability to what you own or have paid in insurance premiums if you didn't own would be very expedient.
Here are rich guys sucking up billions of tax payer dollars on a bet that someone else would have trouble!!!
dave
You could take out insurance on bonds... not so bad if you owned the bonds, but it was possible to take out insurance on someone else's bonds that you did not own, and then if they defaulted you would be owed the entire value of the bonds you never owned. Explains why AIG is a black hole of losses.
I think a law being passed that limits liability to what you own or have paid in insurance premiums if you didn't own would be very expedient.
Here are rich guys sucking up billions of tax payer dollars on a bet that someone else would have trouble!!!
dave
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