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The CDOs were traded ; that's how they were more effectively priced. Now that's there is not trust in CDOs, they can't be traded, and thus are losing their value.

A Ponzi scheme means essentially that you give the first entrants high returns with the money invested by later entrants ; this is not the scheme of CDOs at all : CDOs are insurance contracts.

Un roi sans divertissement est un homme plein de misères

by linca (antonin POINT lucas AROBASE gmail.com) on Mon Aug 20th, 2007 at 06:05:31 AM EST
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