From Pine View Farm

CDS: Credit Derivative Snake Oil 0

A professor from the University of Maryland who used to trade securities distills the snake oil.

A nugget:

And when Americans understand them, they’ll understand why demanding that executives from bailed-out financial institutions forfeit their bonuses won’t do much more than make people feel better. The real culprit is a lack of regulation in the “shadow market” where these instruments are traded.

Follow the link to see the analysis. It’s worth the three minutes.

Aside: When you cut through the Wall Street/financial press double-talk, this stuff ain’t rocket science. That’s why they use the double-talk.

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