How Do You Unscramble an Omelette with 62 Trillion Eggs (Revisited)?
Hamilton on CDS: "If you ask me this is all a $62 trillion pile of crap. What were these guys smoking?"
Hamilton taking a few puffs of the relative healthy good old fashion tobacco
But first a Cinemoment Flashback: The Famous Annie Hall/Marshall McLuhen Scene
"You Don't Have Any Idea What You Are Talking About!"
Typical CDS Structure
Toxic? Perhaps. Impenetrable? Without a Doubt. Why not pay bonuses with the toxic assets? We'll find out what their really worth in a nanosecond.
Could we have a little perspective please maestro:
Okay so this is what a $1 biliion variation of a credit default swap looks like. The "un-netted" notional exposure means there would be, arguendo, 60,000 more transactions of $1 billion if they were all a billion. One report said Lehman had 1 million CDS and other derivative contracts that need to be unwound. Ever get that message on your computer: "Warning you have run out of memory, please delete unnecessary files"