"The truly troublesome feature, though, has to do with the “empty creditor” problem. Empty creditors are lenders (to a corporation or government) that cease to be concerned about whether the borrower fares well or poorly." (Another troublesome feature of CDS usage - Financial Times).
Winning or Losing Equals Winning With Empty Creditors
4/10/2012 09:11:00 AM | via @Dvolatility |
So, is this why business schools train their students so hard in finance/accounting? To learn how to insure every credit with the
banks taxpayers? How hard is this?!: