I just skimmed the beginning of your article but will look at it in the light of day. I saw you had an analogy of a car wreck - so perhaps I'm on the right track.
*BUMP* ! . . . Thanks for posting that helpful info !
If just 10% of CDS underlying risks go bust, somewhere in the financial system there will be $5 trillion in losses . . .
I want to remind all freepers and lurkers that approximently 40% - 50% of mortgages are unenforceable through foreclosure Why ___ ?
The debt paper (i.e. mortgages) are seriously flawed. Lenders sold, resold, resold and resold toxic paper to the whole world. In some cases, the notes were forged outright and sold with criminal intent to defraud. Every time a note was sold more than once the net effect was the same as selling a forgery. This bailout will reward criminals !
Therefore, a more realistic picture is that 40% - 50% of all CDS risk is itself toxic !
Do the math yourself. This will end badly regardless of what Congress does with this bailout legislation.