CDS ( Credit Default Swaps) and what this all means

My personal opinion on CDS is that it is fine in its place…as insurance on instruments held in ones portfolio.

It is a lethal instrument when sold naked or when small bids at large prices distort the indices…this being analagous to my buying life insurance on OW because I think he is a crap driver who will surely die on the road. Only OW should be entitled to buy insurance on OW and my meddlining in OWs entitlement to insurance should not make OWs insurance cost more than it need cost OW who is entitled to insure his own risk without having 2pack dicking around with the premium on the margins!!!

That much said lets go to the main point, great guest article on Zerohedge here … -and-media