What Is A Credit Default Swap, and Why Do I Care?

If your like me my brain is about to explode from Economic Info Overload Syndrome, better known as EIOS. The amount of negative news coverage, market spikes and crashes have taken it's toll on many people in the United States and around the world. I myself have been glued to CNBC at home and work and it certainly changed the way I feel about the future. Now I don't mean that in a bad way just in a different way, things arent' going to be the same. From here on out we as Americans can't continue to be financially ignorant and just hope inflation keeps bailing us out. The days of using our homes as piggybanks are over and easy cheap credit will be harder to get unless you have spotless credit. It's apparent that we have allowed ourselves to be hoodwinked into believing there was nothing but bedrock under our economic foundation and the party would last forever. But we were unaware and turned a blind eye to certian financial instruments that have chiped away at our economy. and into a recession. Complicated Wall Street things far removed from our daily life that we never paid any attention to.There are many types of these high finance derivites out there but I'm only going to highlight one of them and it's called a CDS or Credit Default Swap. Please take a few minutes and click the following link and read a little about what they are and see if you can make heads or tails of what it is. Happy reading and I look forward to readin some of your posts!! If we don't start educationg our selves we'll continue to get educated the hard way!!!!

http://www.investopedia.com/articles/optioninvestor/08/cds.asp