Sunday, September 21, 2008

NEXT SHOE TO DROP COULD BE SIZE 18

I was wondering with some colleague's well we had tech bubble burst, to prop up we got 1% FED and birth of HOUSING/DEBT BUBBLE.......so we get historic bailout prop job to avoid normal market reaction and so I wonder what BIGGER bubble could there be?


“The market for derivatives grew at the fastest pace in at least nine years to $516 trillion in the first half of 2007, the Bank for International Settlements said. Credit-default swaps, contracts designed to protect investors against default and used to speculate on credit quality, led the increase, expanding 49% to cover a notional $43 trillion of debt in the six months ended June 30, the BIS said… ‘The pace of increase in the credit segment outstripped the rises in other risk categories,’ Christian Upper, a BIS analyst…wrote…The money at risk through credit-default swaps increased 145% from last year to $721 billion…”
Bloomberg, November 22, 2007

**SOMEBODY OUT THERE ISNT BEING HOSED FROM THIS MELTDOWN>??????????????????????????

Duratek

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