Re: Lehman Brothers CDS Auction
The CDS and Derivatives markets are the catylists to this economic crash.
If it was just the subprime mess in isolation, that would cost US taxpayers $400-500 billion to clean up. A huge mess, but not big enough to take down the global economy that has a GDP of $60 trillion.
If people add derivatives and the CDS market, both account for $70 trillion in risky bonds and bets made on those bonds and institutions. This mess will cost at leasts $10 trillion to clean up globally. This is enough to crash many economies around the world.
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