Yea CDSs are something different. At one time in my life I had a good handle on what a swap is. ( I used to be a trader ).
I distinctly remember mortgage backed securities as a feature of the 80s era crisis. Some public schools lost their nut because they went all in on them .
Now that I think about it swaps are similar. Great, now Im haunted, I have to look this up.
Either way, Things like “affordable housing act” and the like, forced the banking system to adapt to the added risk of taking on less than qualified borrowers, the result as the mortgage backed security( maybe a swap ). So that the banks could package risky borrowers with low risk ones and lay off the risk with the concept being that the sum of the parts of the package is greater than the whole.
Havent thought about swaps in a looooong time. Gotta go crack a book.
EDIT: My point is Socialism fails and Capitalism takes the blame.
