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Wakum Mata!
Politcally Incorrect Musings
Market Turmoil 
1st-Oct-2008 01:37 pm
At the heart of the whole current Wall Street issue is a thing called the CDS, or Credit Default Swap.

The $55 trillion question
The financial crisis has put a spotlight on the obscure world of credit default swaps - which trade in a vast, unregulated market that most people haven't heard of and even fewer understand. Will this be the next disaster?
By Nicholas Varchaver, senior editor and Katie Benner, writer-reporter
Last Updated: September 30, 2008: 12:28 PM ET


* 600,000 jobs lost - and counting
* Good month for construction
* Genworth faces a downgrade
* Mortgage applications plunge
* Credit still crunched; Treasurys bounce

(Fortune Magazine) -- As Congress wrestles with another bailout bill to try to contain the financial contagion, there's a potential killer bug out there whose next movement can't be predicted: the Credit Default Swap. [...]

But traders say almost no new contracts are being written on any but the most liquid debt issues right now, in part because nobody wants to put money at risk and because nobody knows what Washington will do and how that will affect the market. [...]


Emphasis mine. So there you have it. It does not matter if there is a bailout or not to Wall Street. All they want is a decision that they can stand by. The Dow dropped not because of no bailout, but because the direction that Wall Street thought was a sure thing, was wrong. Now we are in an indecisive period and that leaves Wall Street flopping like a fish on the river bank (no pun intended, even if it still stinks).

All that is needed to stabilize the markets is a DECISION. Those slick traders and bankers are gonna make money no matter what happens, I assure you. But the Government's interference is prolonging the pain.

Tell your Rep. and Senator to stop this foolishness. Tell them to leave your tax dollars alone, and go home.

No bailout.
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