Credit Default Swaps explained — pretty much.
OK, you ask, what the fuck is a Credit Default Swap, and why should I care? Well, they’re the derivative financial instruments that have been a major reason why we’re in this economic shitstorm. Last night’s 60 Minutes did a superb job of explaining these unregulated “side bets” that have been called Financial Weapons of Mass Destruction.
Watch this segment. It’ll explain to the layperson, to the best extent possible, how Credit Default Swaps work and how they fucked everything up. And it’s bound to get you righteously pissed off.
I tried to embed the video here, but the fucker wouldn’t play, so click to check it out.
