{"id":192807,"date":"2009-02-18T06:09:00","date_gmt":"2009-02-18T11:09:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2009\/02\/18\/a-good-article-on-why-the-cds-may-still-destroy-us\/"},"modified":"2009-02-18T06:09:00","modified_gmt":"2009-02-18T11:09:00","slug":"a-good-article-on-why-the-cds-may-still-destroy-us","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2009\/02\/18\/a-good-article-on-why-the-cds-may-still-destroy-us\/","title":{"rendered":"A Good Article on Why the CDS May Still Destroy US"},"content":{"rendered":"<p>This is a good read on <a href=\"http:\/\/www.theglobalist.com\/StoryId.aspx?StoryId=7529\">why credit default swaps are destroying our financial system<\/a>.<\/p>\n<p>The money quote:<\/p>\n<blockquote><p>These are deliberate flaws built into the game that include the lack of a central counterparty, no effective limit on dealer leverage and a schizophrenic pricing methodology that has nothing to do with the several different types of underlying risk contained in these contracts. It is a market designed by and for the seller, to the disadvantage of the buyer. But CDS may also be thought of as a poker game where the <span style=\"font-weight: bold;\">dealers have few chips on the table<\/span>.<\/p><\/blockquote>\n<p>It comes down to excessive leverage, and the author, Christopher Whalen, is rather more of an optimist than I am about the outcome and how soon the mess will be straightened out.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>This is a good read on why credit default swaps are destroying our financial system. The money quote: These are deliberate flaws built into the game that include the lack of a central counterparty, no effective limit on dealer leverage and a schizophrenic pricing methodology that has nothing to do with the several different types &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1004,1002,985],"tags":[],"class_list":["post-192807","post","type-post","status-publish","format-standard","hentry","category-finance","category-good-writing","category-regulation"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/192807"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=192807"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/192807\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=192807"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=192807"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=192807"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}