Thursday, March 11, 2010

Credit Default Swaps are Fraud!

Have questions about credit default swaps? Wonder what "naked" credit default swaps are? See Max Keiser report #24

Credit default swaps are purportedly a kind of insurance sold on financial products. However, unlike regulated insurance, the companies selling credit default swaps do not have reserves to back up these supposed insurance contracts.

Naked default swaps are credit default swaps sold people by people who do not own them!

The European Union is attempting to regulate credit default swaps (as reported in today's WSJ); however, US financial institutions are up in arms about proposed regulations. Sick.

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