This is not helpful news, its a anti McCain
ad. Shame on you. Tell us about Charlie Rangel's part in all this.

This article is not anti McCain, it is the truth. Gramm was the architect for de-regulation of the energy industry and financial markets. He is responsible for undoing the safeguards Congress put in place after the Great Depression to curve Bank speculation. The results of de-regulation of these industries have been devastating to our economy. Adding to our problems was the complete lack of oversight by the Bush administration and the Republican led Congress. By the time Democrats took control of Congress the cat was already out of the bag........

Okay Pete,

I'm trying to understand here, the CDS act as insurance guaranteeing the payment of various bonds. Lehman, I assume, has triggered & you say Freddie & Fanny triggered last week. So the holders of the CDS now have to cough up & deliver on the insurance & redeem the bonds? But isn't that the whole point of insurance?

Thanks to "Nation of Whiners" Graham, the whole area is unregulated. So the holders of the CDS have to give over. They can't cover the entire cost due. They then go bust. & so they, & the original bondholders get what they can out of the assets & are SOL for the rest?

Do I understand it?

So why is everything tanking today?

This above comment isn't helpful news, it's a pro republican response. Shame on you. Tell us something that doesn't directly conflict with its own premise.

u r an idiot

Ive been writing for awhile tying Mr mcbushes economical adviser too many of the deregualtion thru lobbying.Phil Graham is the main player in many changes to the finacial oversitesthat were in place.Lets us not forget the first banking blunder The Keating Five google that and see who some of the thieves who wre involved in that one.The Republicants have robbed and twisted everthing they could.As they followed the Bush doctrine"2 I lie and you sware too it.

You forgot to mention Phil Gramm's wife -- formerly a proud member of the Enron board of directors!!

We also should not forget that even though the CDS act like insurance products, the word "insurance" never appears anywhere. Insurance is regulated by state governments. Like kids home alone, CDS are always free from government regulation.

Peter Cohan is a paid shill for the Obama campaign, no doubt. A quick check of his voting records could make clear that he is a long time Democrat activist. Also, if I am not mistaken, he's been a heavy financial contributor to Obama.

One thing Cohan didn't mention is the $62 trillion in outstanding CDS is the notional amount (and some estimates place it in the $45-50 trillion range). Because CDS positions are harder to zero out than Futures, many of them get resold, and hence double counted. The estimated underlying bond value is estimated to be around $3 trillion, if you could net everything out like you can in the Futures market.

Somewhat related, given Cohan's political agenda here, readers might be interested in learning more about Fannie Mae's and Freddi Mack's investments in politicians:

http://www.opensecrets.org/news/2008/09/update-fannie-mae-and-freddie.html