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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: bart13 who wrote (94551)	5/25/2008 8:26:17 PM
From: Real Man	Read Replies (3) \| Respond to of 110194

The main Ponzi Scheme is, of course, one you made the page for (derivatives). I think it's unstoppable, i.e., it will continue its rapid exponential growth despite any possible attempts of regulation until it's time to collapse, taking down the Fed and the dollar. The Fed protects it, because they are VERY scared of even imagining the collapse, as we've seen with the Bear bailout - they stepped in to protect the Bear as a counterparty, and that's really it. I don't think it is possible to gradually disarm this weapon, eventual detonation is inevitable, although the timing is unknown. It would have detonated already, were it not for the Fed. Thanks to the Fed put, this mess grew to astronomical proportions. Systemic risk is expanding exponentially as well with the total notional and real value of all derivatives.