There is no such thing as a 'naked credit default swap.' Trading something that has no cost basis whatsoever to another party who can't and won't take delivery of an imaginary financial fiction does not constitute a bona fide transaction. Buying and selling avatars on Second Life using virtual money has more economic legitimacy.
This is outright fraud meant only to generate fees for Wall St. But to question this fraud is to question America's enslavement to 'market fundamentalism' and the belief that 'the market' is omniscient and infallible and that Goldman Sachs is God.
Speaking of Goldman Sachs, in case you missed it, here's my debate on France24 last week unmasking Goldman's rogue practices. This video on YouTube has over 130,000 views in less than a week so clearly there is some interest in my point of view, but you will never hear me interviewed on corporate controlled American TV.