Economy Oct 11 If the amount of $62 trillion is owed for credit default swaps, who or what entity eventually pays that? Question/Comment: If the amount of 62 trillion dollars is owed for credit default swaps, who or what entity eventually pays that? Not even the U.S. government can make up for an amount which is 13 times our…
Economy Oct 08 Are there really $64 trillion of bad mortgages out there? Question/Comment: You mentioned in your report that there are $64 trillion in CD swaps out there. AIG only had a few hundred billion. Who has the rest? Are there really $64 trillion of…
Economy Oct 06 Can you explain, simply, what a credit default swap is? Question/Comment: Can you explain, simply, what a credit default swap is? Paul Solman: I sure hope so. Basically, a credit default swap or “CDS” is an insurance contract to protect against bankruptcy. Say…