Bill Bartlett Bracknell Tas
At 11:34 PM -0700 17/10/08, Charles Peterson wrote:
>I've gleaned that all the money we've pumped into AIG
>(first the $85 billion, and then the ~$35 billion?)
>has gone straight out to settle AIG's Credit Default
>Swaps (i.e., the gambling debts for which they never
>bothered to have reserves), just at the moment they
>become due. Of course, as part of the swap, we've now
>got the toilet paper, isn't that nice.
>
>But exactly how long can the Fed and Treasury keep
>this up? How many trillions in CDS's did AIG write on
>one side?
>
>And aren't we on the hook for all the future losses at
>Fannie and Freddie? Isn't that potentially in the
>trillions also?
>
>The way this looks, when the bubble finishes
>deflating, the US public will have taken on nearly the
>entire loss.
>
>How big was the bubble above projected housing price
>baseline? $5 Trillion? Is anyone figuring the total
>cost we're on the hook for, not just the trillion
>peanuts we've shelled so far? And what if the
>collapse doesn't stop there?
>
>Is that correct? Am I missing something?
>
>And it seems even this is just a small part of the Fed
>and Treasury are doing. Going further, how many of
>the outstanding $65 Trillion in CDS are one-sided?
>And are we going to have to pay off other derivative
>losses also?
>
>Charles Peterson
>
>
>
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