Credit Default Swaps - They just might bring down the House of Cards - Page 2 - Mercedes-Benz Forum

View Poll Results: Credit Default Swaps
I understand them fully. Scary huh. 2 20.00%
I have a vague idea what they're talking about 3 30.00%
Can we see some pics of boobs and cars now plz? 6 60.00%
Multiple Choice Poll. Voters: 10. You may not vote on this poll

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post #11 of 54 (permalink) Old 02-17-2008, 06:44 PM Thread Starter
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What the hell are you talking about--exactly? I have leveled NO insult at you, personal or otherwise!!?? You can't possibly be that insecure, can you???
LOL.... I do believe that's yet another one?
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post #12 of 54 (permalink) Old 02-17-2008, 06:46 PM
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You can both kiss my conditional subjunctive ass. Hope that helps.

"If spending money you don't have is the height of stupidity, borrowing money to give it away is the height of insanity." -- anon
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post #13 of 54 (permalink) Old 02-17-2008, 06:56 PM
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Thanks for the aspersions sweetheart, but I have made a killing in the past year while most of the 'experts' took a dive. So I'm kinda feeling my oats actually.
What's w/ all the "sweetheart" stuff? Have you gone gay on us?

Don't believe everything you think
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post #14 of 54 (permalink) Old 02-17-2008, 06:58 PM
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You can both kiss my conditional subjunctive ass. Hope that helps.
...kiss, kiss!

Don't believe everything you think
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post #15 of 54 (permalink) Old 02-17-2008, 07:01 PM Thread Starter
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What's w/ all the "sweetheart" stuff? Have you gone gay on us?
Six and counting...
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post #16 of 54 (permalink) Old 02-17-2008, 07:17 PM
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Six and counting...
You have an overactive imagination my friend...

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post #17 of 54 (permalink) Old 02-17-2008, 07:18 PM
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I know just enough to want to see boobs and cars!

FWIW: There is no "house of cards" to come down, IMO. These swaps are essentially insurance-type vehicles and they are struggling in a few cases due the the double-whammy of an over-heated housing market trying to regain equilibrium and the sub-prime loan losses. No one could have predicted that yet I think it is working itself out nicely. We only have 1% or 2% of mortgage loans in default, and that is a very manageable, albeit regrettable, situation. Just as the housing market excesses have to be worked out, so to do the credit market excesses that accompanied it. But this is FAR from the end of the world as we know it.
All during 06 and until December of 07 that is the same thing you said about the housing and credit market.

You really need to take a look at the numbers and more importantly the ratios.

As for blowing off the 1-2% mortgage loans in default, those number become cumulative, it is not a static number [that same darned 1% being late again for a whole year]. Simply put, if 1% are in default in January that is X number of defaults. That repeats monthly so by the end of the year you have 12X. In the case of the Financial, Credit and Mortgage industries which work off of 1/100 of a percent increments 1% is large. 2% is huge. These folks project their business plans on "up to .25%" failure rate.

It is why they have insurance when things go over throttle. And there is not enough equity in the insurance pool to compensate for the current levels of foreclosures in the Mortgage market and defaults in the Credit Card/Consumer market.

The word you need to understand is "leveraged". When the system is working it is a great way to bundle. When the system fails, it is nothing but a house of cards.

McBear,
Kentucky

Being smart is knowing the difference, in a sticky situation between a well delivered anecdote and a well delivered antidote - bear.
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post #18 of 54 (permalink) Old 02-17-2008, 07:20 PM Thread Starter
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You have an overactive imagination my friend...
What's funny is that when I catch you in the act, you still can't help yourself.

Meanwhile, back on topic: if the broader market resumes its major bull, and the 'glitch' this past year was nothing more than a figment of the liberal media's imagination, and equity values skyrocket across the board, the dollar regains its footing, gold returns to $600 an ounce, the public debt gets paid off, etc etc, then I'll indeed be left behind a bit and you'll be proven right. So far, though, all bloviating aside, doesn't look so good for you does it?
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post #19 of 54 (permalink) Old 02-17-2008, 07:28 PM
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All during 06 and until December of 07 that is the same thing you said about the housing and credit market. ....
And you have been screaming the same Chicken Little BS (Bear Shit) for at least that long w/ absolutely nothing to show for it! Why don't you get a life!!

Don't believe everything you think
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post #20 of 54 (permalink) Old 02-17-2008, 07:30 PM
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What's funny is that when I catch you in the act, you still can't help yourself.

Meanwhile, back on topic: if the broader market resumes its major bull, and the 'glitch' this past year was nothing more than a figment of the liberal media's imagination, and equity values skyrocket across the board, the dollar regains its footing, gold returns to $600 an ounce, the public debt gets paid off, etc etc, then I'll indeed be left behind a bit and you'll be proven right. So far, though, all bloviating aside, doesn't look so good for you does it?
What on earth are you talking about?

Don't believe everything you think
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