 Quote:
Originally Posted by chinaco
those CDS derivatives that have been oversold with inadequate reserves and used as speculative side bets (by people who do not own the securities)... have caused many of us great harm.
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I agree with you about the inadequate reserves. However, there is nothing inherently wrong with "speculative side bets". They go on in all of the futures markets (including the equity & Treasury markets) and add a source of liquidity for the hedgers.
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