Unregulated Credit Swaps More Than World Income
In previous notes, I have been saying that current financial problems are too big to bailout, that a trillion dollar bailout could tank the US government, here's why:
"BOB MOON: OK, I'm about to unload some numbers on you here, so I'll speak slowly so you can follow this.
The value of the entire U.S. Treasuries market: $4.5 trillion.
The value of the entire mortgage market: $7 trillion.
The size of the U.S. stock market: $22 trillion.
OK, you ready?
The size of the credit default swap market last year: $45 trillion.
KAI RYSSDAL: That's a lot of money, Bob."
As in three times the whole US gross domestic product, Bob. And the truth is that Moon probably underestimated. The unregulated and poorly reported credit default swaps may have actually passed $70 trillion last year, or about $5 trillion more than the GDP of the entire world.(Devilstower at DailyKOS)
The "too big to fail" theory does not work, when there is no one big enough to come to the rescue!