Comments on: The impending derivitives storm that threatens the world http://controlcongress.com/2008-election/the-impending-derivitives-storm-that-threatens-the-world Control Congress is a multi-partisan, issue-oriented political forum that brings together the Left, Right, and everyone in between. Thu, 18 Mar 2010 01:38:43 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Bill http://controlcongress.com/2008-election/the-impending-derivitives-storm-that-threatens-the-world/comment-page-1#comment-80857 Bill Mon, 13 Oct 2008 13:18:50 +0000 http://controlcongress.com/2008-election/the-impending-derivitives-storm-that-threatens-the-world#comment-80857 China Given Right To Evict Americans From Homes? http://www.alipac.us/modules.php?name=Forums&file=viewtopic&t=135232 China Given Right To Evict Americans From Homes?
http://www.alipac.us/modules.php?name=Forums&file=viewtopic&t=135232

]]> By: Bill http://controlcongress.com/2008-election/the-impending-derivitives-storm-that-threatens-the-world/comment-page-1#comment-80856 Bill Mon, 13 Oct 2008 13:14:28 +0000 http://controlcongress.com/2008-election/the-impending-derivitives-storm-that-threatens-the-world#comment-80856 (Loses) (Loses)

]]> By: Bill http://controlcongress.com/2008-election/the-impending-derivitives-storm-that-threatens-the-world/comment-page-1#comment-80855 Bill Mon, 13 Oct 2008 13:11:38 +0000 http://controlcongress.com/2008-election/the-impending-derivitives-storm-that-threatens-the-world#comment-80855 When the average Joe looses in Vegas what happens in Vegas stays in Vegas. When a large bank looses on Wall Street, what happens on Wall street goes to K street which goes to Congress which then goes to the President, which then comes out of the average Joe's wallet. When the average Joe looses in Vegas what happens in Vegas stays in Vegas. When a large bank looses on Wall Street, what happens on Wall street goes to K street which goes to Congress which then goes to the President, which then comes out of the average Joe’s wallet.

]]> By: JohnKonop http://controlcongress.com/2008-election/the-impending-derivitives-storm-that-threatens-the-world/comment-page-1#comment-80850 JohnKonop Mon, 13 Oct 2008 11:27:40 +0000 http://controlcongress.com/2008-election/the-impending-derivitives-storm-that-threatens-the-world#comment-80850 When I ran for office I made a big deal out of this issue and they called me CHICKEN LITTLE! When I ran for office I made a big deal out of this issue and they called me CHICKEN LITTLE!

]]> By: captain_menace http://controlcongress.com/2008-election/the-impending-derivitives-storm-that-threatens-the-world/comment-page-1#comment-80843 captain_menace Mon, 13 Oct 2008 04:46:08 +0000 http://controlcongress.com/2008-election/the-impending-derivitives-storm-that-threatens-the-world#comment-80843 BTW, I'm curious to know if Emery supports Barack Obama, like Warren Buffett does? BTW, I’m curious to know if Emery supports Barack Obama, like Warren Buffett does?

]]> By: captain_menace http://controlcongress.com/2008-election/the-impending-derivitives-storm-that-threatens-the-world/comment-page-1#comment-80840 captain_menace Mon, 13 Oct 2008 04:35:25 +0000 http://controlcongress.com/2008-election/the-impending-derivitives-storm-that-threatens-the-world#comment-80840 Because CDSs are unregulated I think it is hard for any one entity to measure the potential impact that unwinding these things will have. The issue that I've had some difficulty understanding is the notional vs. net value. The notional value is staggering - $50+ TRILLION. The net value is unknown (although less than the notional), as it will depend on how the market plays these contracts out. Hang tight, the roller coaster is picking up speed. Because CDSs are unregulated I think it is hard for any one entity to measure the potential impact that unwinding these things will have.

The issue that I’ve had some difficulty understanding is the notional vs. net value.

The notional value is staggering – $50+ TRILLION.

The net value is unknown (although less than the notional), as it will depend on how the market plays these contracts out.

Hang tight, the roller coaster is picking up speed.

]]> By: LeftHook http://controlcongress.com/2008-election/the-impending-derivitives-storm-that-threatens-the-world/comment-page-1#comment-80839 LeftHook Mon, 13 Oct 2008 04:22:25 +0000 http://controlcongress.com/2008-election/the-impending-derivitives-storm-that-threatens-the-world#comment-80839 Great post Emery. Why nobody is talking about derivatives (especially credit default swaps) and why the "bailout" doesn't address them is a complete mystery. Great post Emery.

Why nobody is talking about derivatives (especially credit default swaps) and why the “bailout” doesn’t address them is a complete mystery.

]]> By: Al Swearengen http://controlcongress.com/2008-election/the-impending-derivitives-storm-that-threatens-the-world/comment-page-1#comment-80828 Al Swearengen Mon, 13 Oct 2008 00:40:56 +0000 http://controlcongress.com/2008-election/the-impending-derivitives-storm-that-threatens-the-world#comment-80828 Right on Emery! Thanks for bringing this up. AIG's bailout is all anyone needs to investigate to figure this thing out. Read the stories on how/why it happened. My perception of credit derivatives...being that I deal with them through my work...it's a zero-sum game. Either you were right about the future, or your counterparty was...either you were smarter or they were. Someone gets paid off and the other loses money. Swaps that originate because of a portfolio manager's fear of not hedging against some specific negative turn in the market is what these were sold to Congress as originally. They turned into chips in a casino, and the Credit Default Swap - CDS - is an unregulated insurance policy. What other type of insurance product can be sold unregulated in the United States? Right on Emery! Thanks for bringing this up.

AIG’s bailout is all anyone needs to investigate to figure this thing out. Read the stories on how/why it happened.

My perception of credit derivatives…being that I deal with them through my work…it’s a zero-sum game. Either you were right about the future, or your counterparty was…either you were smarter or they were. Someone gets paid off and the other loses money.

Swaps that originate because of a portfolio manager’s fear of not hedging against some specific negative turn in the market is what these were sold to Congress as originally. They turned into chips in a casino, and the Credit Default Swap – CDS – is an unregulated insurance policy.

What other type of insurance product can be sold unregulated in the United States?

]]> By: captain_menace http://controlcongress.com/2008-election/the-impending-derivitives-storm-that-threatens-the-world/comment-page-1#comment-80816 captain_menace Sun, 12 Oct 2008 19:14:41 +0000 http://controlcongress.com/2008-election/the-impending-derivitives-storm-that-threatens-the-world#comment-80816 <a href="http://www.motherjones.com/news/feature/2008/07/foreclosure-phil.html" rel="nofollow">He'll go down in history as foreclosure Phil</a> And no surprise, he's a good friend of McCain's, and until recently was his economic advisor. He’ll go down in history as foreclosure Phil

And no surprise, he’s a good friend of McCain’s, and until recently was his economic advisor.

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