Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (79977)	6/9/2008 3:45:23 PM
From: westpacific	Respond to of 116555

lead to losses of between $36 billion and $47 billion for counterparties.... The impact of a bankruptcy filing by Bear Stearns on the OTC Derivatives market, including the CDS, was probably one of the factors that influenced the Federal Reserve and US Treasury’s decision to support the rescue of the investment bank. Barclays Capital recently estimated that the failure of a dealer with $2 trillion in CDS contracts outstanding could potentially lead to losses of between $36 billion and $47 billion for counterparties. This underlines the potential concentration risks that are present. Satyajit Das wilmott.com ----- This is why the FED bailout Bear Sterns. Read this article, Satyajit is the world leader, IMO, on the subject of derivatives. This, my friends, not subprime, is the FEDs fear, what is Lehmans exposure, then whom is next? The CDS market is 5 times National Debt, or half the TOTAL US Household wealth! Soros says FED must move them over to an exchange..... "idea of moving credit default swaps to an exhange" West