Speculative swaps grew to dwarf real insurance swaps
Volume of speculative swap contracts grew to dwarf those for actual insurance—$5 trillion bonds issued in world but $60 trillion bet on those bonds via Credit Default Swaps: ie for every bond, 10 people promising to pay full amount if bond goes bad.
Immediately related elementsHow this works
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The Global Financial Crisis »The Global Financial Crisis
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Immediate triggers of the financial crisis? »Immediate triggers of the financial crisis?
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Pathology in the Credit Default Swaps market »Pathology in the Credit Default Swaps market
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Speculative swaps grew to dwarf real insurance swaps
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Global GDP in 2007 estimated to be $55-65 trillion »Global GDP in 2007 estimated to be $55-65 trillion
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