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With The Real Econmoy Faultering

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if my understanding of cds is correct, basically they are insurance policies written by banks to cover a default on a loan, then, with a coming resession and companies up to their eyes in debt; cds's are going to make mortgage back securities look like a slight overcharging at the curry house.

banks are not insurance companies and you can bet your last dollar they did not price them right. they have also been selling them to people with no interest in any loss. (which in general insurance is illegal.).

remember the liabilities for the worlds banks from cds are $62,000,000,000,000.00

or maybe im wrong and nothing to see here?

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if my understanding of cds is correct, basically they are insurance policies written by banks to cover a default on a loan, then, with a coming resession and companies up to their eyes in debt; cds's are going to make mortgage back securities look like a slight overcharging at the curry house.

banks are not insurance companies and you can bet your last dollar they did not price them right. they have also been selling them to people with no interest in any loss. (which in general insurance is illegal.).

remember the liabilities for the worlds banks from cds are $62,000,000,000,000.00

or maybe im wrong and nothing to see here?

http://www.housepricecrash.co.uk/forum/ind...showtopic=79344

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The powers that be are currently developing exchanges for OTC derivatives such as credit default swaps.

The panic about them at the moment is that they are OTC and therefore opaque so with current lack of confidence means people are scared about the big numbers without really understanding what they mean.

Once they are exchange traded then people will start to calm down as the information on true counterparty risk will become more widely available.

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The powers that be are currently developing exchanges for OTC derivatives such as credit default swaps.

The panic about them at the moment is that they are OTC and therefore opaque so with current lack of confidence means people are scared about the big numbers without really understanding what they mean.

Once they are exchange traded then people will start to calm down as the information on true counterparty risk will become more widely available.

I reckon the exchanges will e a few years away

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  • 396 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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