Kasz216 on 18 December 2010
| ChichiriMuyo said: But there was absolutely no way for them to fail serperately because of credit default swaps. |
Huh? Credit Default swaps exist specifically FOR diversifying the risk to make it less risky.
Instead of having 5 loans in Las Vegas, you have one in LV, one in Chi, 1 in NY etc.
In an regular market, Credit Default Swaps makes things safer.
