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Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (29750)	10/3/2008 5:49:34 PM
From: DuckTapeSunroof	Respond to of 71588

"Orders of magnitude larger" (then the smaller 'sub-prime securitizations', which are but a sub-set of the TOTAL of 'unregulated financial derivative securities') PLUS the associated "Counter-Party Risk" (since there is no authority standing behind these trades and guaranteeing settlement) is what PRODUCES the "systemic risk". Massive size, plus the inherent (and, as we all now know: vastly underestimated) counter-party risk is what is causing the SEIZING UP of the globe's financial systems. Weapons of mass financial destruction are starting to spark-off. (As was foreseen.)