Jay Maynard (jmaynard) wrote,
Jay Maynard
jmaynard

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The financial catastrophe that didn't happen

One part of the recent financial mess, according to the MSM, was the financial instrument known as the "credit default swap", or CDS. It's a financial guarantee that another institution won't default on its obligations. The MSM was predicting that CDSs would trigger a snowball effect if they ever had to be paid, because nobody could afford to pay off.

Guess what? The bankruptcy filing of Lehman Brothers on September 15 triggered payment of its CDSs. Everyone involved paid their obligations, finishing up yesterday - and that was it. No drama, no cascading failure, nothing.

Of course, you won't hear about that from the MSM, which doesn't care about collapses that don't happen - because they won't help Obama get elected. I had to read it at Power Line. You can, too, if you want all of the explanation.
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