Now it is so big they will all fail:
“This morning I saw the following from Nouriel Roubini on my twitter feed -Roubini Global Economics Paper:
Are CDS Worthless Because Greece’s Exchange Won’t Trigger a Credit Event? http://bit.ly/ttrgFS followed by this from Chris Whalen - @Nouriel
Precisely. Fed, etc encourage CDS to generate income for TBTF banks, then the banks welch on the bets by “investors” Kleptocracy.
As anyone who follows me knows, I’m in lock step with that particular
opinion espoused by Chris. Still, the bigger and much more pertinent
question looms... Aren’t the big US investment banks carrying trillions
of dollars of unhedged exposure? Quick answer: Yeah!”
“The top four banks with the most derivatives activity hold 94% of all
derivatives, while the largest 25 banks account for nearly 100% of all
contracts. Overall, the US banks derivative exposure is $249 trillion and is more than four folds of World’s GDP at $58 trillion.”
Well here we go. I really believe that the rumors of War with IRAN are real.
Would Zero start a massive War with Iran to attempt an FDR recovery. (Actually Fascist policy) My belief is yes. Nothing he does works, food costs are soaring. Will we see RATIONING like my Mothers Generation?
I don’t mean to be pessimistic but if someone can explain to me how this will not happen, please enlighten me.
When, not if, we get downgraded again, will there be a run on the banks as in 29? Just asking questions.