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Video: The Crisis of Credit Visualized

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Bagua5/02/2009 5:29:01 pm PDT

re: #283 kay1212

Not exactly but on the right track, it was more the rumours that took Bear Sterns down, the redemption and the Fair Valuations.

Shorts are just losing trades when the underlying goes up or stays level, they can’t actually “force” anything down in a normal, liquid market; the CDO/CDS market on the other hand, became illiquid.