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["Lisa K.V. Perry" <lisakvperry AT gmail.com>]

On Wed, Oct 1, 2008 at 7:56 AM, bob ford <bobford79 AT yahoo.com> wrote:

> This is the best simple language explanation of credit-default-swaps that I
> have read.
> -----------------------------------------------------------------------
>
> The $55 trillion question
>
> " CDS are no mere artist's fancy. In just over a decade these privately
> traded derivatives contracts ballooned from nothing into a $54.6 trillion
> market. CDS are the fastest-growing major type of financial derivatives.
> More important, they've played a critical role in the unfolding financial
> crisis.


I've read that the derivative market is next. $54.6T is massive, $700B
doesn't make a dent. I have no idea how this plays out or if some of the
$700B is to prop up the derivatives. Perhaps the new Bill passes and
everyone's confidence returns thus the market just steadily rises. Loans are
freely given to individuals and businesses, credit can be accessed and is
repaid on time.

But if not? That's a bigger than $64 question, isn't it?

lkvp