Mar 28 2009
The Real Crime in the Bailout — Naked CDS Deals
by Cenk Uygur
Fri Mar 27, 2009 at 09:48:08 AM PDT
The size of our national economy this year is roughly $15 trillion. The size of the Credit Default Swaps (CDS) market is $64 trillion. The whole world GDP is about $56 trillion. How could the CDS market be larger than the world GDP combined? That doesn’t make any sense.
The minute I read that many months ago, I realized that there was something unreal going on in the CDS market. By “unreal” I mean something that is given value even though it is not attached to real assets. And the more I researched, the more I realized that was true.