[GOPJ]

So he basically admitted that JPM was the next domino to fall if Bear had declared bankruptcy.

And if that had happened, the whole system would collapse.

And then? What?

[cinives]

Then we have some painful reality. We are all poorer than we think, because debt cannot be money. There has to be value there.

Once reality sets in, we can get back to a reality valuation of assets - in essence that what a bankruptcy is.

It’s not pretty, but without it you just have complexity piled on complexity until the entire edifice collapses anyway.

The end is certain - it’s how we get there that is still somewhat in our control. Congress, the Treasury, the Executive and the Fed colluding with banks to put it all back on the taxpayer is just postponing the inevitable.