Credit Default Swaps - WMD in action: vaporising US Dollar and all FIAT currencies.Every bailout is triggering CDS "Credit Default Event" when market should be unwind and positions settled. Magnitude of the game is apparent from the picture above. Bailout of Fannie Mae FNM and Freddie Mac FRE has triggered settlement of contracts protecting 1.4 trillion in underlying assets.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=ajsxbVS.W2lQHow much will be in a case of Lehman Brothers LEH, AIG, General Motors GM, Washington Mutual WM?
the derivative bombs are getting ready to explode. Like nitro they are inherently unstable due to the unpayable debt obligations. I'd like to personally thank the idiots that invented this system of financial self destruction. Hope you enjoyed yourselves. Oh do you want us bail out your sorry asses again?
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