Reading Zerohedge the past couple of years it's easy to see DOOM
approaching. Now DOOM really seems to be just weeks or months away
for the Euro, probably pretty close for US banks as well, one thing
seems really obvious to me. All credit default swaps should be
cancelled and they should be made illegal.
Banks buy cds' to hedge against losses, but really they just make an
entangled alliance of risk. Banks think they are hedged, so there
is no risk and they can be even more leveraged. When one domino falls
they are all going to blow up like the scene in Finding Nemo, where a
falling torpedo sets off all the mines around the submarine that Nemo
and Dory are hiding in. boom.
Instead of hedging the risk the cds' are just propagating the risk
around the world, and who knows how much of it there is. why they
weren't outlawed after 2008 made me lose the little bit of faith
I had in the congress.
If the OWS people want to protest something concrete they should be
demanding the end to TBTF, and CDS' instead of just demanding cheap