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


To: Giordano Bruno who wrote (4099)2/8/2008 2:24:53 PM
From: Real Man  Read Replies (1) | Respond to of 71456
 
These are 2 party contracts. One loses, one wins. One who loses
can't pay. The winning party loses on another contract, but
can't pay, cause the losing party on offsetting contract did
not deliver, and so on. The domino effect. Those who can't
pay have to sell something to raise cash, that something is
stocks. Large derivative firms can't hedge, cause
counterparties in hedging contracts blow up and don't deliver.