Not really. However, a pure BK for, say, JPM, Citi, or BAC,
any of these three, will cause a
100 megaton financial detonation. Trust me, we don't want
that. Lehman was really peanuts in comparison,
and it crashed some markets 70% this October. Nobody
can possibly buy that chit, not even the US government.
They have to find a way to disarm the bomb (cancel contracts)
without detonating it. Not an easy task. It can possibly
be accomplished by nationalization of every big derivative
player, namely just three, maybe four - JPM, Citi, BAC, and
Wells Fargo. These steps will have to be done around the
globe, since the bombs are everywhere. Some already did. -g-
That is not an easy task either, as some are winners and
are trying to collect. If you nationalize the losers, the
government pays and moral hazard emerges (AIG, for example)
And how would you technically nationalize the winner?
They had an experiment with your solution this Fall,
and we had a meltdown. -ggg- |
