Credit default swap deals unnerve California - Some say credit default swaps may influence the market for muni bonds = How a credit default swap deal works

[mEDITate-OR:

not give credit to the negative impacts of credit default swaps..., on U.S.

What "investment bankers" did when they sold U.S. on CDOs was to tell us that it was a way to reduce both the interest/costs paid for our civic improvements and to cover our pension liabilities, AND to reduce the risk.

CDOs did neither.

If you do not see the humour in using a CDO to fund your local police & fire pension liabilities..., well, you don't have any sense of humour, do you. Bcuz the final COST of that terrible mistake is gonna bankrupt your communities.

In order to fund pensions, state & local govts sought out high yield and high risk investments. The got the latter, but not the former. Now, they are deeper in the financial hole than they were before.

And, Wall Street made off/out like "bandits" - figuratively and literally.

Sad, pathetically sad.

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Credit default swap deals unnerve California

Some say credit default swaps may influence the market for muni bonds

http://www.latimes.com/business/la-fi-california-swaps-20100819,0,3141195.story?track=rss&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+latimes/business+(L.A.+Times+-+Business)
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How a credit default swap deal works
Some hedge funds buy protection against missed bond payments, others sell it.
http://www.latimes.com/business/la-fi-calif-swaps-side-20100819,0,4956606.story
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