1.0 link 216759 <![CDATA[The Wall Street Journal Glosses Over the Pitfalls of Credit Default Swaps]]> http://www.huffingtonpost.com/david-fiderer/emthe-wall-street-journal_b_216759.html "A Daring Trade Has Wall Street Seething," is a simplified case study into the pitfalls of credit default swaps. Nobody, including The Wall Street Journal's reporters, could figure out exactly what was going on. The transaction, illustrated by Journal below, involved sophisticated players who ostensibly knew what they were doing.

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In this particular deal, a group of large banks held mortgage securities that they thought were worthless, so they decided to...

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