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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?


To: Real Man who wrote (82321)10/22/2008 9:16:24 AM
From: GROUND ZERO™3 Recommendations  Read Replies (2) | Respond to of 94695
 
If A goes broke and does not pay B, then B goes broke and does not pay C, then C goes broke and does not pay D, etc., you got a systemic meltdown.

The domino theory all over again... unfortunately, today, most people think the domino theory means if the pizza isn't delivered within 30 minutes, it's free...<g>

GZ



To: Real Man who wrote (82321)10/22/2008 10:41:56 AM
From: dybdahl  Read Replies (1) | Respond to of 94695
 
Our economy is not like the traditional nuclear chain reaction from high school teaching books. It is more like a mix of various atoms, where some may destabiize and trigger others, and some just absorb. The mix decides what the overall behavior becomes.

I have not seen a good overview of what kind of derivatives mix we have in the world economy, but I'm sure that there are a lot of clever people doing their math on that right now.