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

To: ggersh who wrote (26646)	1/28/2010 3:04:12 PM
From: Real Man	Respond to of 71463

Exactly. They lower risk profile to blow real debt bubble. AAA what should be D, as we have seen, cause A rated firm insured the D-s. Slice and dice crap with A-s. When it comes to roost, it completely reverses. Sliced stuff becomes D, cause part of it defaulted, which, in turn, downgrades the A-s in it. This drops assets and leads to even more drastic blowup. A weak link is netted with everyone and their mother, so when it blows, the mother blows. The losses become real, because assets are driven WAY below, just as they were driven WAY above. That said, no, 700 Trillion is not a real number, but the losses are substantial, and they tend to cause synthetic markets, then crashes instead of normal price discovery, which is in nobody's interest