Being blamed for such things as the 2008 financial crisis, exacerbating the Greek credit crisis, and the culprit behind the recently reported $2 billion JPMorgan Chase & Co. (NYSE:JPM) loss hasn’t helped credit default swaps (CDS) in gaining good respect (my guess is that there’s a lot of respect out of fear). Although, at times, it may be true that CDS can be viewed – probably incorrectly – as weapons of mass destruction, this article addresses the question: Besides the obvious benefit to risk, money, and speculative mangers, are CDS beneficial to Main Street and the economy? The question matters in that…
Credit Default Swaps and Main Street
Harrison Roger
Roger is an economic adviser and active angel investor. He owns various economics firms. His work allows him a diverse group of clients across the globe, including the United States, Europe, and Asia. He holds a Ph.D. in business economics.