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Do you know what Alternative Investments are? They’re things like credit default swaps! Credit default swaps are essentially the ability to buy insurance on someone else’s house in one hand as you hold anything else—the adjustable-rate mortgage you know they can’t pay off, or the capacity to sell that mortgage and therefore generate more mortgages like it, or a gasoline can—in the other hand. This is what Jacob Lew dealt with!
fek:
Meet President Obama’s new chief-of-staff.
Where do CDS enter the picture? The Huffington Post article you link to makes no mention of credit default swaps. Also I think anyone can enter into a credit default swap agreement, not just hedge funds. Finally, credit default swaps are not inherently evil.
