An Insurable Interest.
The argument against Credit Default Swaps (CDS) centers on the issue of "insuable interest." I can't buy insurance on my neighbor's house because I don't have an "insurable interest." The incentive for someone who doesn't have an insurable interest is to burn the place down. Which is why everyone on Wall Street is attacking Greece.
Friday, February 12, 2010
Posted by John at 2/12/2010 08:20:00 AM