Naked CDS betting?

lifted from comments by run75441

Anyone looking at the CDS and the “naked” CDS portion of the Derivative Market? It was said that AIG had $400 billion CDS outstanding, which is why the Fed determined they could not let it go under. It was also said speculators led to AIG’s inability to raise capital in the market place due to the number of “naked” CDS betting on its default. Apparently, there is a way to look up the CDS market and lenders use it.

It would be an interesting topic and very germaine to today’s economic issues as it is estimated to be a CDS market of ~$62 trillion of the ~$600 trillion Derivative market globally. It is my understanding that this is the link between the banks and why there has been and still could be many failures to come.

( Any Wall Street analysts in among readers, preferably clothed?…rdan, not run)