Comments on: " Credit Swaps Top $33 Trillion, Depository Trust Says"

By: RBG

RBG — Thu, 06 Nov 2008 04:26:00 +0000

Yves,

Would you mind telling me a bit more about what "properly hedged" means in CDS contract as a buyer or writer?

Thanks.

By: datadave

datadave — Thu, 06 Nov 2008 00:49:00 +0000

“heroic efforts of the FSF”

the only good aracnid is a dead aracnid!!

By: Anonymous

Anonymous — Thu, 06 Nov 2008 00:38:00 +0000

yes the originating of new cds’s should be inforced.These illiquid shady instruments have cuased enough havoc on the system.

By: Anonymous

Anonymous — Thu, 06 Nov 2008 00:36:00 +0000

matt what is fsf?

And do you have links to show the fall in cds outstanding?

Thank you

By: Matt Dubuque

Matt Dubuque — Wed, 05 Nov 2008 16:00:00 +0000

Matt Dubuque

As I previously stated in this forum, the dramatic reductions we are seeing in CDS levels outstanding is largely due to the heroic efforts of the FSF, completely ignored in the American press.

Matt Dubuque

By: Anonymous

Anonymous — Wed, 05 Nov 2008 14:36:00 +0000

The first order of business of the O-B adminstration should be to actively intervene in this market.
1. Prohibit the “creation” of CDS on any US corporation.
2. Prohibit the settling of existing CDS obligations on any US corporation.
3. Dismantle the market on CDS for any US corporation.

By: Anonymous

Anonymous — Wed, 05 Nov 2008 13:47:00 +0000

agree with thomas j. about the aig bailout loan being used almost in full to address their leh cds exposure. lehman goes bankrupt on monday and aig is rescued the next day..its a no brainer…that $85bln loan from the treasury paid off aig’s lehman cds exposure of more than 90c on the dollar…also, rumors abound that deutsche bank would have collapsed then and there considering their massive exposure to aig insurance.

By: Anonymous

Anonymous — Wed, 05 Nov 2008 11:24:00 +0000

Yves said:

"I get bothered when casual readers might assume it has a comprehensive view (the Bloomberg article acknowledges that indirectly by saying, "a Depository Trust & Clearing Corp. report that gives the broadest data yet"). I'd feel much better if they admitted there were gaps and reassured us that they were less than X rather than remaining silent and letting the public assume they know more than they might really know."

But wouldn't making such general knowledge put the DOW at sub - 5,000? The transparency has to begin at the origination and carry all the way through. Of course without asymetrical information no "big money," can be scalped off by those in the know. Kind of a catch-22, if you will.

By: eh

eh — Wed, 05 Nov 2008 11:03:00 +0000

Again I can only ask: Is that a lot? Big and then even bigger numbers are tossed around so often these days, so often that you lose any sort of feeling for what is and is not a lot.

By: thomas j

thomas j — Wed, 05 Nov 2008 09:59:00 +0000

"What's more, it now looks like U.S. taxpayers are on the hook to Hilton's fortunes, too. That's because when J.P. Morgan Chase & Co. in March took over Bear Stearns, the Federal Reserve assumed $30 billion of Bear's illiquid assets. Part of those loans and securities is Bear's $4 billion unsold portion of the $20 billion Hilton financing package, according to people familiar with the matter."

See today's WSJ.

I'll bet most US taxpayers would be surprised to know they helped finance Paris Hilton's trust fund.