kingofithaki

Crisis Indicators Continue to Cool

most derivatives are broken out over enough years for this debate to be a non event. As the dollar gets yenized and is kept down, industry will find itself quickly snapping back, to the shock of those who have done a mark twain on the industrial base of the USA. With regulators giving out 60 day fix or be fixed letters to lenders, this problem will be short lived. By March 2009 this market gets back when demografix rebalance and the cost of heating northern homes sends people to the A/C belt(cal/n.mex/ariz/te... this question will be left behind. Remember how russia was never going to recover from 1998??? look up the original estimates of cost for the S&L crisis...$500 billion...then 250 billion....then the now parroted $160 billion...sorry but the real hard cost was less than $85 billion (GAO/AIMD 96-0123 RTC Financial statement report). And we survived the great depression, which gave us the marx brothers, wc fields, the three stooges and abbott and costello...so maybe things were not as bad as the history books led us to believe...this too shall pass...the derivatives are spread out over 30-50 years, as annuity calculations for pensions and insurance policies work around future liabilities, not present short term fluctuations...the true annual exposure is more in the range of 5-7 trillion...still dangerous...but not the massive number as against the 90 trillion in US capital assets...so sit back, open up a bottle of your favorite vice and count the days till we are overworked again...