“Along with this information came the revelation that the FDIC insured unit was already stuffed with $53 trillion worth of these potentially toxic obligations, making a total of $75 trillion.”
I’m no real estate expert, but I’d say that is a lot.
To know whether it’s “a lot” we’d have to know what the net is.
E.g., if I bet $4.99 that the 49ers will win and then, to hedge that, bet $5.01 that the 49ers will lose, the “total” bet is $10, but the “net” (potential loss) is $.02. This is what derivatives are “supposed” to do (hedge other bets). Unfortunately, many derivatives aren’t structured in this “win-lose” fashion, but can end up “lose-lose”.
Of course the main point of the article that connected bankers use corrupt politicians to cover their behinds is still valid.
75 Trillion...
Sooner or later they are going to be talking about some real money!