The Vatican denounces credit default swaps and debt securitization

From a piece in the Wall Street Journal. 

Thursday’s document focused on ethical principles rather than specifics, but singled out for criticism the practice of debt securitization, saying the risky nature of such products makes them a “ticking time bomb ready sooner or later to explode.”

The Vatican also denounced credit default swaps as “gambling on the failure of others, which is unacceptable from an ethical point of view…a kind of economic cannibalism.”

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