Reinko

AIG Borrows From ... Itself

Total derivate positions of the US banks is a multiple of the world domestic product; one day this will crash.

Total derivate positions on credit default swaps are 62,000 billion US$.

Now Lehman has gone this market is stirred up a bit and the sudden liquidity needs for AIG are rather likely related to the problems on the CDS markets.

The next days will bring more wisdom to this, for the time being Forbes has a very good article on this:

www.forbes.com/home/20...

Suddenly 70 to 80 billion needed? It all has the smell of derivatives...