[GOPJ]

One word: derivatives.

You're right. The derivative people have "made" more money than exists. The fed can cut the rate to 0 - congress can bail out til there's nothing - and the derivative bets still won't be paid off...

[GOPJ]

Derivative traders HAVE MADE MORE MONEY THAN EXISTS - Bailouts & rate cuts to ZERO won’t work.

[Mr. Jeeves]

The fed can cut the rate to 0 - congress can bail out til there's nothing - and the derivative bets still won't be paid off...

At some point, the derivative "winners" are going to have to accept that they didn't actually win anything - their lotto numbers came up, but there is no money to pay out the jackpot.

[Patriotic1]

So what about the mess that brought down Barings Bank?

http://www.stock-market-crash.net/barings.htm

Isn’t this somewhat similar but on a massive scale? Or am I totally off-base?