Comments on: Roundup: Explaining Financial News in Pokemon Cards http://www.bargaineering.com/articles/roundup-explaining-financial-news-in-pokemon-cards.html personal finance blog with anecdotes, advice and commentary. Sun, 08 Nov 2009 00:35:16 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: jim http://www.bargaineering.com/articles/roundup-explaining-financial-news-in-pokemon-cards.html/comment-page-1#comment-289587 jim Mon, 13 Oct 2008 12:57:20 +0000 http://www.bargaineering.com/articles/?p=3641#comment-289587 Khyron: I think it's a great explanation given the level of understanding required by the average Joe... you're right I mean CDS, not CDO... I just got my acronyms mixed up. Khyron: I think it’s a great explanation given the level of understanding required by the average Joe… you’re right I mean CDS, not CDO… I just got my acronyms mixed up.

]]> By: Khyron http://www.bargaineering.com/articles/roundup-explaining-financial-news-in-pokemon-cards.html/comment-page-1#comment-289575 Khyron Mon, 13 Oct 2008 06:17:54 +0000 http://www.bargaineering.com/articles/?p=3641#comment-289575 Hmm, I think that's really the worst explanation of the crisis I've heard yet. And dude, I think you meant CDS when you said "a CDO, which doesn’t have the same capital requirements as true “insurance”". BUT a CDO is not an insurance product. It IS a credit derivative. It does not act like insurance. That would be a credit default swap - CDS. And since I'm on a tear having to explain this misconception tonight, read this first. Don't worry, I'll wait. http://bit.ly/3QuOgi Done? Cool. Credit default swaps act(ed) like insurance on reference credits - bonds, CDOs, RMBS, CMBS, etc. Hope we've cleared up that misconception. Let's use the right terms in the right ways, as it serves no one to mislead them (unintentionally or intentionally). Hmm, I think that’s really the worst explanation of the crisis I’ve heard yet.

And dude, I think you meant CDS when you said “a CDO, which doesn’t have the same capital requirements as true “insurance””.

BUT a CDO is not an insurance product. It IS a credit derivative. It does not act like insurance. That would be a credit default swap – CDS. And since I’m on a tear having to explain this misconception tonight, read this first. Don’t worry, I’ll wait.

http://bit.ly/3QuOgi

Done? Cool. Credit default swaps act(ed) like insurance on reference credits – bonds, CDOs, RMBS, CMBS, etc.

Hope we’ve cleared up that misconception. Let’s use the right terms in the right ways, as it serves no one to mislead them (unintentionally or intentionally).

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