[HangnJudge]

Who gets the pot when this poker hand folds?

[donmeaker]

A derivative is a promise by the principal to pay the creditors at the back end, if a certain event occurs. To get the promise, a creditor pays in at the front end.

If a promise by the principal can’t be kept, it won’t be. Bankruptcy then voids the promises, and takes control of the remaining assets. The bankruptcy judge will allocate the assets among the various remaining creditors. Normally the party making the promise takes their profits out up front, and can thus walk away clean, and rich.

Derivatives are risky. One risk is the potential that some creditors, by contract, by law, or by corruption, stand in line before others. Assets paid out before bankruptcy are usually beyond control of the bankruptcy judge (exception is if corruption can be proved, then a ‘claw back’ can be attempted.

[sarasmom]

As I understand it, there is no “pot”, just the final end point of the game plan.
The whole point of the game plan seems to be that moochers and leaches “win” by destroying the productive worlds current economic exchange system, and that the players will usher in a brand new system.
With the players themselves in positions of great power and wealth. They actually believe they have earned it.

What will actually happen is a world wide backlash and insane levels of both public and private violence by most of humanity.

Whether one calls it Armageddon or likens it to the book "Atlas Shrugged" or the movie "Planet of the Apes", the end result will be worldwide wars. It's not going to end well for anyone. And it's already started.

[usconservative]

Who gets the pot when this poker hand folds?

That would be the Bankers and Financiers. You and I, the poor taxpayer get screwed again without getting kissed first.

[gotribe]

Bondholders as always. Unless obama steps in and rules their claims invalid.