Note that when I talk about derivatives, I talk about
interest rates swaps, directly tied into the treasury bubble.
When you see that one collapse, the CDS trouble will seem
like a walk in the park. Housing will take a dive to 1/3 or 1/4 of
current value. Citi will go bankrupt first, bringing down
ALL large derivative players around the globe, a cascade
of failures. JPM, BAC, Wells will all collapse. Interest rates
will soar to hights unimaginable. Spoos will dive to 200.
Currencies will go bonkers. That's the event that's next.
Timing uncertain. Right now the Fed tried to fix things
the usual way, by blowing that bubble right back up, providing
tons of liquidity to Citi, BAC, JPM, and WFC, to fix
this derivative thing, while undermining US credit rating
in the process and creating a setup for the meltdown. -g- |
