[ryanclemson]

Part of me thinks the the same math geniuses that invented the credit default swap financial derivatives figured out an even better way to beat the market. All they had to do was get someone to fat finger an order for P&G.

Regardless of the truth to that theory, the article makes a great point. Does anyone know if only the NASDAQ is cancelling orders? What about the NYSE?

[retube]

credit default swap is not that complex. it's just insurance against a bond default. anyone with basic arithmitic can price one.

[ryanclemson]

actually, a credit default swap is not insurance at all. thats how we got into the whole sub-prime crisis of 2008.

[cwan]

It was the excess underpriced leverage that got us into the whole subprime crisis of 2008. CDS's are financial tools that allow buyers and sellers to expose themselves to certain risks. Whether this is used for insurance/hedge or as a bet on a certain outcome is and should be at the discretion of the buyer/seller.