Credit Default Swaps from the Viewpoint of Libertarian Property Rights and Contract Theory

posted by
October 31, 2011
Libertarian Papers
by Thorsten Polleit and Jonathan Mariano  
Posted in Commentary

"In the so-called 'international credit market crisis,' which started in the second half of 2007 in the US subprime mortgage market, financial derivatives, most notably credit default swaps (CDS), have been publically blamed for having caused, or at least aggravated, the economic and monetary debacle. However, sound economic analysis reveals that CDS are fully compatible with the principles of the free market, and that CDS are not to blame for the disintegration of credit markets ..." [abstract -- full paper available as PDF or MS Word download] (10/28/11)

http://bit.ly/tPjMjq  

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