Tuesday, April 10, 2012

Winning or Losing Equals Winning With Empty Creditors

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?!:

"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).

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