Wednesday, October 22, 2008

On the mortgage crisis

This whole "default swaps" situation has us all fucked into a cocked hat to a much worse degree than I ever thought possible...
Q. What are the risks posed by credit-default swaps?

A. The first risk is their sheer size. Writing in Sunday's New York Times, Christopher Cox, chairman of the Securities and Exchange Commission, estimated there were $55 trillion in credit-default swaps outstanding, which is larger than the combined gross domestic product of every country on Earth.

(Emphasis mine)

How does this shit happen? Did nobody think they were maybe going too far?

The quote is taken from this Seattle Times article.

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