Tuesday, September 30, 2008

Swaps totally kick Wallstreet in the face...

A nice tidy article on these 'credit swaps' that you've been hearing all about lately... what Warren Buffet called Weapons of Mass destruction.... For those of you who want to know more its a pretty good explanation, for those of you who are familiar it is still worth a read. Or more appropriately titled... Credit Swaps totally kick the Wallstreet Bull in the face....

FYI. The size of the derivative markets is huge... it is estimated to be around $480 trillion in face value vs a $51 trillion for the stock market. Other estimates put it closer to $370 Trillion.
This $480 trillion estimate is pulled from Wikipedia
The $370 trillion estimate comes from Economy Watch

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