Shocking Fraud from Financial Scum

A remarkably clear summary of the CDO/CDS fraud by a CS person.

The second part is particularly interesting and clear even if I already understood the CDO/tranching part and what a CDS was. Basically, for banks to sell all those crappy CDOs by tranches there where edge funds that where buying the "bad" tranches and gambling that the "good" ones would also fail.

The financial markets have always been rigged. Men don't go into business without some assurance they'll come out on top. The more money that is involved, the easier it is to convince the watchmen that your edge is a requirement for good markets.

This article is so incorrect that it's a joke. I guess there's a reason why Michael Lewis and Maria Bartiromo don't talk about the differences between splice() and sendfile()...