BK GUY

Five Reasons the Market Could Crash This Fall

Say you buy home insurance from Insuracorp; your house burns down; you go to collect on your policy only to find Insuracorp is broke. Does your claim against the insolvent insurer make you whole? Obviously not.


On Aug 04 12:10 PM contracontrarian wrote:

> "If Wall Street did put $50 trillion at risk… and 10% of that money
> goes bad (quite a low estimate given defaults on regulated securities)
> that means $5 trillion in losses: an amount equal to HALF of the
> total US stock market."
>
> Any one particular Wall Street firm can lose everything they have
> or even more,but other Wall Street firms would earn the same amount
> at the same time,as they are on both sides of those derivative positions.
> Alltogether "Wall Street" can not lose money on their derivatives...