Greece: if austerity doesn't work... Try more austerity! | 287 comments (287 topical, editorial, 0 hidden)

Re: Indeed. They are the suckers (none / 1)

If you sell insurance with no intention of paying out, is that not fraudulent?

That is the advantage for the buyer of having insurance regulated. But since this is not insurance, I guess pretending to insure would be the correct name of the service.

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by A swedish kind of death on Thu Jun 16th, 2011 at 11:24:23 AM EST
[ Parent ]

Re: Indeed. They are the suckers (none / 1)

Well, the CDS buyers are also only pretending to buy insurance since

the whole point of CDS swaps was to enable you to treat risky junk as though they were AAA investments and relieve you of the obnoxious reserve requirements

Economics is politics by other means

by Carrie (migeru at eurotrib dot com) on Thu Jun 16th, 2011 at 11:49:58 AM EST
[ Parent ]

Re: Indeed. They are the suckers (4.00 / 5)

Communism: The workers pretend to work and the state pretends to pay them.

Capitalism: CDS buyers pretend to buy insurance and CDS sellers pretend to sell it.

Hm, not as catchy.

Sweden's finest (and perhaps only) collaborative, leftist e-newspaper Synapze.se

by A swedish kind of death on Thu Jun 16th, 2011 at 04:16:06 PM EST
[ Parent ]

Greece: if austerity doesn't work... Try more austerity! | 287 comments (287 topical, 0 editorial, 0 hidden)