🚨 Understanding the 2008 Financial Crisis: The Role of Credit Default Swaps

🚨 Understanding the 2008 Financial Crisis: The Role of Credit Default Swaps 🚨

• Key Factor: Credit Default Swaps (CDS) were a major catalyst in the 2008 financial meltdown.

• Risky Insurance: CDS allowed investors to bet on the default of loans, increasing risky behavior.

• Chain Reaction: As defaults rose, the widespread use of CDS magnified financial instability.

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