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

To: LTK007 who wrote (16652)	1/24/2009 11:49:07 AM
From: Real Man	1 Recommendation Read Replies (1) \| Respond to of 71452

Not really. However, a pure BK for, say, JPM, Citi, or BAC, any of these three, will cause a 100 megaton financial detonation. Trust me, we don't want that. Lehman was really peanuts in comparison, and it crashed some markets 70% this October. Nobody can possibly buy that chit, not even the US government. They have to find a way to disarm the bomb (cancel contracts) without detonating it. Not an easy task. It can possibly be accomplished by nationalization of every big derivative player, namely just three, maybe four - JPM, Citi, BAC, and Wells Fargo. These steps will have to be done around the globe, since the bombs are everywhere. Some already did. -g- That is not an easy task either, as some are winners and are trying to collect. If you nationalize the losers, the government pays and moral hazard emerges (AIG, for example) And how would you technically nationalize the winner? They had an experiment with your solution this Fall, and we had a meltdown. -ggg-