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#398 w/Allison Schrager - "The Horrible, No Good Economy: A Primer”

The Fifth Column

CHAPTER

Credit Default Swaps

Michael Wolraich: Bear Stearns could have muddled through for a while. He says they bought bonds that fell in value and it's not clear they'll ever go back up in value. The bank had among the most, if not the most amount of long-term treasury debt at a time when rates were different 18 months ago than now. "They just hadn't really done anything," Wolraich says.

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