Credit Default Swaps

The truth about credit default swaps : was there a problem? Some say the answer is no. Then why all the fuss?

Politicians and regulators see a need for regulation in the credit default swap market because it is in their political interests to extend regulation to as many markets as they can. The success of this market is also something of an embarrassment to them. Every time a market succeeds without regulation, it makes advocates of greater regulation appear foolish, and regulators themselves appear useless at best.

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