Holy crap, the Pope nails it!

Discussion in 'Stock Market' started by Mac1958, May 18, 2018 at 7:39 AM.

  1. Mac1958
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    Mac1958 Diamond Member

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    Pope Calls Derivatives Market a ‘Ticking Time Bomb’

    Holy crap, um, no pun intended.

    Credit Default Swaps played a huge role in the Meltdown, and I don't know how the hell (no pun intended) they got on the Popester's radar, but he's absolutely right.

    Even worse are synthetic CDSs, which are nothing more than bets on bets.

    Well done!
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  2. Toddsterpatriot
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    Toddsterpatriot Platinum Member

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    Credit Default Swaps played a huge role in the Meltdown

    Still baloney.

    Not a single bank failed, or came close to failing, because of CDS.
    The crisis would still have happened even if CDS had never been invented.

    Bad mortgages and leverage...….

    Even worse are synthetic CDSs,

    As opposed to natural CDS? LOL!
     
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  3. Mac1958
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    Mac1958 Diamond Member

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    Yes, that's the standard talk radio line.

    Back to the real world: The banks, along with AIG (which was selling these things like candy with ZERO reserve requirements), merely had to be BAILED OUT because they hedged their shit securities with swaps.

    The amount of factual information that has to be ignored and avoided to go down that road is simply staggering.

    This alternate reality shit is scary.
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    Last edited: May 18, 2018 at 9:04 AM
  4. Toddsterpatriot
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    Toddsterpatriot Platinum Member

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    I guess if you can show how much Bear Stearns and Lehmann lost due to CDS versus mortgages and bonds,
    this claim would be more convincing.

    Or how much Fannie and Freddie lost due to CDS?

    Otherwise, I'm going to continue mocking this silly fact free claim.

    Still laughing about synthetic CDS.
     
  5. Mac1958
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    Mac1958 Diamond Member

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    You just completely ignored the point.

    No one has said that swaps were the ONLY reason for the Meltdown, but that's the game you're playing.

    Spend a few years in my profession and maybe you'll learn something.
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  6. Toddsterpatriot
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    Toddsterpatriot Platinum Member

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    Credit Default Swaps played a huge role in the Meltdown,

    Be more specific. 3%? 5%? More?
     
  7. Mac1958
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    Mac1958 Diamond Member

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    More. Along with the ratings agencies that gave Treasury-level ratings to shit securities, banks that pushed shit securities while they were also shorting them, mortgage companies that were writing comically shit loans because they knew they'd sell them off by midnight, banks that reached 30/1 and 40/1 leverage, politicians who remained willfully ignorant, regulators who refused to regulate, and a few other things.
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  8. Toddsterpatriot
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    More.

    How much? 6%?

    Along with the ratings agencies that gave Treasury-level ratings to shit securities,

    This was probably a much larger factor than CDS.

    banks that pushed shit securities while they were also shorting them

    Tiny, tiny amount of securities. Much, much smaller than CDS.
     
  9. Mac1958
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    Mac1958 Diamond Member

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    Great, thanks for your opinion.
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  10. Toddsterpatriot
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    Yes, that's the standard talk radio line.

    Ignorant whining about CDS is much more the talk show line.

    The banks, along with AIG (which was selling these things like candy with ZERO reserve requirements),

    Get back to me with the amount of CDS they sold, you might dial back your hyperbole.

    merely had to be BAILED OUT because they hedged their shit securities with swaps.

    And, again, even without the invention of CDS, they'd still be sitting there with this shit on their balance sheets.
     

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