Original Link: http://www.dailykos.com/story/2009/3/3/20956/03317
As I understand it, the ongoing short-selling of credit default swaps is the major cause of the continuing market fall. How is it that this hasn't been stopped? If Ben Stein gets it and tells it to Larry King, how the Hell can the Obama money team miss it?
schoales's diary :: ::
The game was fixed from the beginning. The quality ratings used to guide investors were bullshit- no one was looking at anything- they just put up the ratings they got from the banks. For honest investors it was like driving a Nascar race with a blindfold on.
Pretty soon, swaps were used not just to insure against debt, but to make money by speculating whether companies would fail or not. Bush's regulators didn't even bother to look into the mouth of the campaign contribution gift horses. They didn't need to because it was all unregulated. Besides, they weren't accountants- they were lawyers and wouldn't know a horses tooth from a horses ass (except their boss was such an excellent example of the latter).
So now we have something like $45 to 60 trillion worth(less) of these things floating around, attracting short sellers who continue to speculate and wreck good companies, employee livelihoods, and the market.
Anybody out there know why this shit continues?