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

To: Real Man who wrote (9035)	6/17/2008 9:02:09 AM
From: Elroy Jetson	Read Replies (1) \| Respond to of 71409

You missed out on the 18% mortgages, 16% Fed Fund rate, and the $1 trillion RTC taxpayer bailout of bankrupt Savings & Loans during the last deleveraging. The end of the world has happened before. The size of the derivative market is a problem, but it ultimately cancels itself out with someone holding each side of the trade. This is why JP Morgan Chase bought Bear Stearns, their primary derivative counter-party. If Bear Stearns had failed, their winning derivatives with Bear would have been worthless, while they still would have owed the Bear liquidator for their losing positions. This will likely happen again, and again to manage the counter-party exposure to bankrupt firms. My only concern with this are some ETFs whose primary asset is a "swap asset" with a notional value without a corresponding market value. These ETF holders may see their holdings collapse without regard to the market they are designed to track. .