By Daily Crux Editor Sean Goldsmith:
George Soros - like fellow mega-billionaire Warren Buffett - says credit default swaps are "instruments of destruction," which should be banned. Credit default swaps are insurance contracts on bonds that pay huge sums upon default. Soros says the huge potential payout may lead contract holders to purposely push bonds into default… Soros told a banking conference "Some derivatives ought not to be allowed to be traded at all. I have in mind credit default swaps. The more I've heard about them, the more I've realized they're truly toxic."
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