How are derivatives values calculated? I'm talking about interest rate swaps, credit default swaps etc I mean, what value do they have, their future cash flows? I guess it's not the end of the world if bank A has 500 trillion of CDS on bank B while bank B has 500 trillion of CDS on bank A. The notional value might be 1 quadrillion but the cash exchanged is 0.
You need to look up "derivative" and "bankrupt." Only then will you be able to understand your own question. And when you understand that question, you will have your answer. Really.
the ramp up of profit being made on the swapping fees,what you have left to pay x and he to pay y,could be considerably less,the barnacles have found a way to take over the ship,and the dumb ship is letting them
You do know that the world is split up into economic "units" called countries. China is one of them. Are they on the verge of bankruptcy? Yes, the global architecture of international trade and finance is broken, IMHO.... and it could end very badly. But your line of reasoning in this thread so far has been simplistic and misguided. You need to research a little more, before making these kinds of statements.
Remember when they said, "A Billion here, a billion there... pretty soon you're talking about real money"...
Remember when they said, "A $Billion here, a $Billion there... soon you'll be talking about real money"...