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

To: ggersh who wrote (38809)	6/1/2011 2:48:31 PM
From: Real Man	1 Recommendation Read Replies (1) \| Respond to of 71475

You are probably very right. The following is just an old myth and a question. 500 Trillion dollar notional value question: what will blow up yield curve and forex derivatives trade, and how high is the risk? It's much bigger than Ben. If we draw parallels with LEH and 2008, then my guess is that the answer to this question is "significant sovereign default". Then of course... this did already blow up in 2008, which is why Ben started printing. "Counterparty risk" - any blow up in derivatives area quickly spreads to other areas until the whole highly unstable system sinks to the bottom of the ocean like a single huge Titanic. Thanks to Ben's liquidity lifeboats, we are still swimming.