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Paul Kedrosky's Infectious Greed: Are Credit Defaults Swaps the Tool of the Devil?
Abnormal Returns: Sunday links: hard knocks
FT Alphaville: David Einhorn vs the bloggers on credit default swaps
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I blogged again. Deal With It, Mr. Einhorn http://bit.ly/1nk4HA $$ Banning CDS? Stupid. Getting my groove back... 17 days ago |
Are Credit Defaults Swaps the Tool of the Devil?
Paul Kedrosky's Infectious Greed —
... It is possible to write swaps (far) exceeding the notional value of the thing for which you are writing all the swaps. That’s … not good, like being able to create total policies far exceeding the value of a house, thus making it urgent to burn the house down as soon as possible. Anyway, here is Einhorn’s original, followed by two takes on opposite sides: Einhorn against credit default swaps (FT) Ehrenberg: Deal with it Dave (IA) Yves: First, let’s kill all the credit default swaps (NC) ...
Credit Default Swaps: Proudly the Tool of the Devil Again
Paul Kedrosky's Infectious Greed —
... It is possible to write swaps (far) exceeding the notional value of the thing for which you are writing all the swaps. That’s … not good, like being able to create total policies far exceeding the value of a house, thus making it urgent to burn the house down as soon as possible. Anyway, here is Einhorn’s original, followed by two takes on opposite sides: Einhorn against credit default swaps (FT) Ehrenberg: Deal with it Dave (IA) Yves: First, let’s kill all the credit default swaps (NC) ...
Sunday links: hard knocks
Abnormal Returns —
... ibid)
Roger Ehrenberg, “Sadly, we live in a world of sound bites, and Congress and the White House have found far better sound bites to attack the denizens of the equity markets rather than the derivatives and debt markets.” (Information Arbitrage)
David Einhorn calls CDSs “anti-social” and calls for their ban. (FT also Information Arbitage, naked capitalism, Kid Dynamite ...
David Einhorn vs the bloggers on credit default swaps
FT Alphaville —
... a recent letter to investors. And by objections, we mean the boy-genius founder of Greenlight Capital thinks the instruments which have served him so profitably ought to be banned outright. As he put it: I think that trying to make safer credit default swaps is like trying to make safer asbestos The FT story prompted some of the bigger guns in the econo-blogosphere to take a position on either side of the CDS divide. Here’s Roger Ehrenberg at Information Arbitrage, in a post titled, “ Deal with it, Mr. Einhorn “: David Einhorn is without question an exceptionally bright man and ...
