The Amazing Amnesia of Wall Street

 "Why the European debt deal could kill the CDS market," www.globeandmail.com:

But the economic risk is that hedge funds and other investors give up on the CDS market. Not all money mangers treat the CDS market like a casino. Many purchase insurance on their investments to reduce the risk on their balance sheets. As Mr. Tananbaum pointed out at the Economist magazine’s Buttonwood conference in New York on Thursday, that could result in less investing and by extension, less growth.

“If you can’t hedge your position, you shrink your position,” Mr. Tananbaum said.

Ergh.

Maybe you should be reducing your position, rather than relying on insurance as 100 % of your risk management strategy?