There is $596 trillion in derivatives debt, over $2.5 trillion in credit card debt, and $58 trillion

[truthisfreedom]

in credit default swaps.



Scary shit.

Edited for the link:

http://www.wallstreetdigest.com/hotline.php

This is The Wall Street Digest Hotline Update for Friday, September 19, 2008, at 6:00 p.m. EST.

The Treasury Secretary's mortgage "RTC" plan produced a short-covering rally today. At the closing bell, the Dow soared 368 points, closing at 11,388, while the Nasdaq jumped 74 points, closing at 2,273. The S&P 500 closed 48 points higher, closing at 1,254. Oil closed $6.67 higher at $104.55 per barrel, and gold closed $32.30 lower at $864.70 an ounce.

Treasury Secretary Paulson and Fed Chairman Bernanke met with congressional leaders last night to propose an RTC entity to purchase bad debt from banking and financial firms. The entity, to be approved by Congress, would be funded initially by $500 billion. Congressional leaders approved Paulson's plan to stop a global meltdown.

Will it work? How much will it cost? No one knows.

The SEC has banned all short selling (except for market makers) for 799 financial stocks.

Everything that is happening today (Bear Sterns, Fannie & Freddie, IndyMac Bank, Lehman Brothers, AIG) is a symptom of the real problem, which is the enormous level of defaulting debt. There is $596 trillion in derivatives debt, over $2.5 trillion in credit card debt, and $58 trillion in credit default swaps.

All of this debt is still hanging over the global financial system. The housing market is still in a downward spiral, with mortgage defaults adding to the problem everyday.

You should be 100 percent cash.

Don't be surprised if the market moves back down to test the recent lows.

The next Hotline Update will be on Tuesday, September 23, 2008, at 6:00 p.m. EST.

[Trajan]

1. Derivatives ...

THANK YOU Mr. and Mrs. Gramm ....

[aquart]

2. And Paulson was surprised by this?

But we're handing him the treasury and TRUSTING HIM?

This is the Patriot Act all over again.

[and-justice-for-all]

3. If we sold America to China...

that still would not be enough to cover the deficit.