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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: ggersh who wrote (3110)	12/29/2007 9:52:14 PM
From: Real Man	Read Replies (2) \| Respond to of 71456

Subprime leverage just blew up, and Citi and others got insolvent/walking dead/bankrupt. Those were derivatives. As the underlying plunged, so did all associated derivative dominos, 10 to 100 times the size. The world CBs have no real choice but monetize this, since the alternative is systemic collapse. One counterparty melts down, and you've got a domino effect. Everyone and their mother have been offloading risk on the system (risk transfer is another name for derivatives games) for a very long time. Now if one can't take it, the rest of them will fall. A nasty crisis indeed.