Actually, I don't see how it stops at all. These guys can keep levering up the trade until the defaults/credit events become unmanageable... i.e. some huge counterparty can't pay --- and then we all know what happens (AIG)--the public will step into the breach, pay them out 100c on the dollar and the people can try their luck protesting in another privately owned town square.
It doesn't look good.
On 3/10/12, Doug Henwood <dhenwood at panix.com> wrote:
>
> On Mar 10, 2012, at 11:15 PM, 123hop at comcast.net wrote:
>
>> ----- Original Message -----
>>
>> On Mar 10, 2012, at 4:26 PM, Tony Rolfe wrote:
>>
>>> I just got a finance newsletter saying it's time to go to work on
>>> Portugal. Then Italy, then France. For hedge funds with the money to
>>> do these deals, it's beginning to look like a frothy decade ahead.
>>
>> That sorta shit works until it stops working.
>> ___________________________________
>>
>> And how does it stop working? Political action? Or are there other ways?
>
> No, I was just talking about these market tricks. When they become too
> obvious, it's too late.
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>