Business Spectator – A tsunami of hope or terror?:
[Via Business Spectator]
As the world slips into recession, it is also on the brink of a synthetic CDO cataclysm that could actually save the global banking system.
It is a truly great irony that the world’s banks could end up being saved not by governments, but by the synthetic CDO time bomb that they set ticking with their own questionable practices during the credit boom.
Alternatively, the triggering of default on the trillions of dollars worth of synthetic CDOs that were sold before 2007 could be a disaster that tips the world from recession into depression. Nobody knows, but it won’t be a small event.
[More]
Read the whole thing. If I read this thing right, if GM, Ford etc. go belly up, a financial event will be triggered that will potentially transfer say $1 trillion to banks, the groups that we are already giving billions to.
If true, some people may have a vested interest in the auto companies failing that has nothing to do with jobs and everything to do with making a ton of money. Anyone know anything about this?
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