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Sense on Cents Central Station Live Chat with Larry Doyle

By SusanUnPC on March 28, 2009 at 12:15 AM in Current Affairs

BUMPED DOWN . EVENT CONCLUDED (but you can read the entire show by clicking on the big arrow).


Yes, your comments are always welcome!

  • lizzy

    LD,
    I saw an article from NY Times of 3-27-09 by Paul Krugman. The main thrust of the piece was that CDOs and similar derivatives were a flwed product. Much of our credit market depends on these sources. He didn’t think that it was advisable for the markets in them to be revived. What do you think of the idea?

  • LD

    CDOs and CDS are not bad in and of themselves. Like prescription medication, it is VERY good when used properly (regulated and rated) but can be fatal when abused as it was over the last few years.

    CDOs started back in the 90s and were great vehicles as long as the underwriting and ratings were done properly. the same with CDS.