You were dismissive about the fact that he is a Kashmiri pandit, maybe you don’t care about marginalized caste Hindus ’cause they deserved it? or maybe you don’t know much about Kashimiri pandits. Normally nobody would have cared that much about kashmiri pandits but they were driven out of their home state just because they were pandits and they are now living in refugee camps in their own country. I thought Americans root for underdog and what was this fuss Americans made and are making about Obama being the first black president.

About rest

“…and that’s your’re right …” I have somehow got used to seeing “your” being used in place of “you’re” as in “your welcome” but can’t say that I have seen the reverse before. Sorry, am cleaning up my daughter’s English homework most nights, and couldn’t pass this up

So that leaves the directional players, most of whom are mostly long and therefore got whacked. ergo the redemptions.

So at the end of the day its up to new directional players, bottom feeders like paulson who are betting the real estate market is going up. blackstone is doing something similar and of course this is exactly the type of market that results in a berkshire hathaway buying spree. old-fashioned buy low, expect it to go up in the log run, no leverage investing.

Thanks. Would be interested in hearing more. I had so far thought the latter two were the big causes

Is it tied to swaps because there are some hedge funds that are writing these swaps and as there will be more FI instruments failing they will have to pay up.

My understanding is that this is a relatively small number. Hedge fund exposure to cds isn’t significant, per my understanding.

On the other hand there are funds like John Paulson’s and Frontline that made money speculating (buying swaps) that these bonds will fail and made a killing when they actually did.

Yep, wasn’t talking about the ones that bet right.

A JPMorgan risk-managment guy told me over the weekend thathe expects 70% of the hedge-funds to go under. So who is making $$ here? Is there an even sectreter level of hedgies who are on the other side of these credet defalut swaps?

i thought hedge funds were going under because of the ban on short selling forcing them to dump a bunch of their undervalued assets prematurely at firesale prices, so that their portfolios were balanced as they should be. and then the moment they dumped huge quantities in a spooked market, things became worse.

i don’t think it has to do with cds directly.