Abolish credit default swaps is the first move out of the financial crisis.
Today we are seeing the risk that some countries are suffocated by the interest you pay on your debt.
The increase in debt is a result of using public money to cover the debts of banks, financial institutions and companies, as they say, are too big to fail .
In the discussion are then entered the credit default swaps and their use.
Credit default swaps are financial instruments that are purchased by banks and finance companies to insure against the risk of insolvency of a particular issuer's securities: bonds, bond, government bonds and altro.Essi are a real insurance that must pay in case of insolvency.
A bank or financial institution that has purchased securities of listed companies or government securities, also acquires the related CDS.
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