WMD Derivatives
Posted in Observations on Apr 9th, 2008
So the Federal Reserve is bailing out an investment bank for its bad bets on subprime mortgage loans. But it was really about guaranteeing Bear Stearns’ position in the credit default swaps market (What Created This Monster) - “It was 100 percent related to credit default swaps.”. Bear’s contracts had a value of $2.5 [...]