No, we’re talking about credit default swaps, not accumulated debt. Serious leverage in those. No one really knows just how much the exposure is.
You need a credible link attached to your 57 TRILLION.
As pointed out in the other thread, those CDS would balance out, excepting the original loss, in the medium term of 6-12 months.
However, could/would the ECB come up with the 6-8 trillion in liquidity to avoid a bloodletting?
Assuming they could, how would they soak it back up once the dust settles?