Greedy Bastards Favorite Financial Innovation: The Swaps Market (Part 1)

Welcome to another episode of Greedy Bastards Antidote — a podcast series that zeroes in on “Greedy Bastardism” in our country, and highlights the people out there who are finding the “Antidotes.” Dylan will be talking to the heroes and the visionaries out there on the front lines of education, health care, the environment, trade, taxes, finance and government, all of whom are finding solutions to America’s biggest challenges — and doing it creatively and fearlessly.

This week, we’re focusing on the swaps market — not only to learn exactly what credit default swaps are, but why they’re one of the favorite financial products of Greedy Bastards. This is the one market that betrays every fundamental principal of American values — it is not transparent, it does not require collateral if you’re a AAA rated bank, and you can sell insurance globally on credit. This incentivizes clients to buy them by offering lower interest rates (and who doesn’t want that?)

To help define exactly what “swaps” are, we got to talk to someone who knows them inside and out — Christoper Whalen of Institutional Risk Analytics and author of the book Inflated: How Money and Debt Built the American Dream. You can chat with him on Twitter @rcwhalen

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