May. 28, 2022
It is my personal opinion that securities based swaps are no different then extortion used by criminal elements. While one party would receive the benefits of the swap the cost and the risk is basically on the other party should things in the play go seriously wrong. Like with Bill Wong were it blew up in his face. Because he was basically running a Ponzy scheme on the banks he was doing deals with were he kept on increasing the amount leverage he had and the risk to them and there was really no checks in place to keep this from happening. And from what I understand swaps are a big part of the reason for the 08 crash. It is surprising that they weren't band and made illegal then at that point. But I guess that would have been holding the ass holes responsible for crashing the world economy then.