[financial] situation is in general resolution
He was right. All his critics and opponents were completely wrong.
The [financial] situation is in complete resolution, and there is nothing in the universe that could stop this process. After the de facto nationalization of Bear Stearns and mortgage lenders Freddie Mac and Fannie Mae is now Lehman Brothers went down. Then AIG was nationalized by the U.S. government with $ 85 billion for the time being.
Just for comparison: in 1998, when the then-largest hedge fund in the world, LTCM, stood before the fall, were it $ 4 billion. And the Bank for International Settlements said in its annual report later that we were faced with a tight time meltdown. Would the largest 16 banks in the world at that time not LTCM came to help, there would have been a meltdown of the system.
Now we're talking about obviously hundreds of billions. And if you look at an even more critical aspect: In this section, you said, especially in the case of Lehman Brothers, over 62 trillion dollars in credit derivative swaps. No one knows exactly how much there is of it, for most of it is sold in the switch trade, which means that no central bank or government has any control over it. The only number on the scale that would have this market, which was called by the BIS or in other reports was 600 trillion, which are 600 000 billion. Well, most stop thinking when it comes to numbers with so many zeros. But that is the dimension of the outstanding debt, payment of outstanding obligations.
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