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Strategies & Market Trends : The coming US dollar crisis

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To: Secret_Agent_Man who wrote (5877)4/5/2008 6:20:13 AM
From: Real Man  Read Replies (1) of 71403
 
That's why the Fed bailed out Bear. The estimate was that
if Bear defaulted on its contracts (13.4 Trillion notional?),
the losses to the system (gap risk) could be somewhere around
400 Billion, not 30 billion. It looks like BB twisted some
hands, as the rumour of him resigning was floated on CNN
shortly after the deal. Unfortunately, the system is loaded
with derivatives and leverage.
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