4 ms·
Selling insurance against massive fluctuations would be a sustainable business. You would solve the problem you created and profit both ways.
by jared314 16y ago
Selling insurance against massive fluctuations would be a sustainable business. You would solve the problem you created and profit both ways.
- cturner 16y agoIf there's a high chance of you going to jail each time you do it, that makes it non-sustainable.
- moe 16y agoLet me repeat brisance's question: Any of the directors involved in the mortgage bust served any jail time?
- cturner 16y agoBrisance's question wasn't relevant to what I'd said, or this thread, and that's why I didn't respond.
- moe 16y agoHow is his question not relevant? You claim that there is a significant risk of going to jail for "Selling insurance against massive fluctuations". That's a bit strange because these insurances (CDS) have been sold on a massive scale over the past years and are considered to be one of the main reasons for the crash. I did not hear about anyone going to jail for it, or did I just miss that part?
- cturner 16y agoNo, my claim was that the following would put you in jail: (1) shorting markets and then (2) deliberately creating the sort of fluctuation we saw in the last week. That's all I was commenting on in this thread. (Selling "insurance" and it was wrongly labelled above wouldn't be profitable even if there weren't jail problems. The sell side loses money on a CDS when the market goes down. You'd want to buy CDSs for that eventuality, and CDSs are not insurance.)
- barkingcat 16y agoWhat if there is a close to zero chance of you going to jail everytime you do it? When the government and the banks are in collusion, that's what you get.
- cturner 16y agoWe're talking about the stock market blip from this week. If you can demonstrate that this happened due to collusion between government and banks, please do.