Lehman Brothers CDS Auction

SeekingAlpha · 10-10-2008, 04:08 PM

The CDS and Derivatives markets are the catylists to this economic crash.

If it was just the subprime mess in isolation, that would cost US taxpayers $400-500 billion to clean up. A huge mess, but not big enough to take down the global economy that has a GDP of $60 trillion.

If people add derivatives and the CDS market, both account for $70 trillion in risky bonds and bets made on those bonds and institutions. This mess will cost at leasts $10 trillion to clean up globally. This is enough to crash many economies around the world.

10-10-2008, 04:08 PM	#3
SeekingAlpha Avalon Senior Member Join Date: Sep 2008 Location: Los Angeles Posts: 10	Re: Lehman Brothers CDS Auction The CDS and Derivatives markets are the catylists to this economic crash. If it was just the subprime mess in isolation, that would cost US taxpayers $400-500 billion to clean up. A huge mess, but not big enough to take down the global economy that has a GDP of $60 trillion. If people add derivatives and the CDS market, both account for $70 trillion in risky bonds and bets made on those bonds and institutions. This mess will cost at leasts $10 trillion to clean up globally. This is enough to crash many economies around the world.

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