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To: SouthFloridaGuy who wrote (76192)	3/14/2008 8:07:06 PM
From: XBrit	Read Replies (1) \| Respond to of 116555

the intentions of the US Gov't, which is to bail out the counterparties. Yes, the same applied in Northern Rock. There was a lot of reassuring noise from the govt. Eventually the govt removed the $50k cap on account insurance to try to stop the bank run. But until that was made explicit, the public (the counterparties) didn't trust the reassurances and kept queuing up at the withdrawal windows anyway. By the time the govt acted explicitly, the damage was done. I bet that same thing will happen here.

To: SouthFloridaGuy who wrote (76192)	3/14/2008 9:37:26 PM
From: Real Man	Respond to of 116555

Too many counterparties in trouble, tough to bail 'em all out. Bear is just a tip of the iceberg, and everything was just fine this past Wednesday, remember? As Mr. Yen goes to 80, many more counterparties will join Bear. Derivative crisis is spreading from CDS to currency and credit swaps. JPM next? Ah, ye olde CITI too, only 38 TRILLION notional. 25 billion times 10 or 30? That was the Fed Drain in the last 2 weeks, and the TAF is not yet operational. Fine move to shake derivative markets -g-