The coming US dollar crisis Message Board

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Strategies & Market Trends : The coming US dollar crisis

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To: dybdahl who wrote (11849)	9/26/2008 11:51:04 AM
From: Real Man	2 Recommendations Read Replies (2) of 71454

Yeah. Person A is really investment bank A, and it owes bank B not $10 million, but $150 billion. Now, trades don't clear for months due to lack of liquidity, so bank A goes bankrupt, and bank B can't collect 150 billion it now owes it to bank C. Bank C owes it to Bank D, and so on. Banks stop trusting each other and lending to each other. The system freezes, everyone trying to collect to pay the other guy, but can't.

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