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Politics : GOPwinger Lies/Distortions/Omissions/Perversions of Truth
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To: JBTFD who wrote (140841)10/11/2008 11:53:25 AM
From: geode00  Read Replies (2) of 173976
 
Rumor is that they don't want to admit the scope of the problem because:

1. It really is a $60+ trillion problem.

2. They really don't know how big the problem is because they need an army of mathematicians and super computers to figure out what these contracts are worth.

IMO the problem can only be so big because there is only so much money in the world that was borrowed to gamble on these things. Just as subprime mortgages hit a peak in 2005-6, there is a limit to the problem. If these things (whatever debt they represent) stop going belly up then there won't have to be insurance payments made and the system can be unwound without this much mayhem.

I suspect that they will not let Morgan Stanley go the way of Lehman now that they know how little Lehman's bonds are worth in the market today. Heck, at least they now have a clue.
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