If Chu-Carroll displayed some humility, I'd cut him some slack. He has become increasingly arrogant over the years. Financial contracts per se are amoral. Chu-

If Chu-Carroll displayed some humility, I'd cut him some slack. He has become increasingly arrogant over the years. Financial contracts per se are amoral. Chu-Carroll claims that a naked CDS is immoral, which is ridiculous. He shows that he does not understand how the financial world works, he passes moral judgements left and right when he should stick to the facts. The "content" of his blog post is equivalent to the content you'd get if you read the Wikipedia entries on various structured products. In the end, my problem is not with Chu-Carroll himself, but rather with this dangerous meme that something as complex as structured finance can be summarized in a few blog posts. This "illusion of knowledge" can be more damaging than plain ignorance. I know people who have worked in Finance for years and still don't understand entirely how banking works. It takes years to understand these things in detail. For more instructive content, I'd suggest this book: http://books.google.com/books?id=r4gGl33zE0EC http://books.google.com/books?id=r4gGl33zE0EC