Fund Manager Warns Puerto Rico Default May Trigger A “Black Swan” Derivatives Melt-Down
SilverDoctors.com
June 30, 2015
It is highly probable that the crashing stocks of MBIA, AMBAC and AGO are the alarm bells of a black swan landing. And, of course, no one has been talking about them…. until today.
Although these firms are somewhat obscure and small compared to the size of the majority of financial companies, they are highly leveraged with massive off-balance-sheet liabilities for which they have zero hope of covering in the event of even relatively small bond defaults. In other words, these firms are the ones most likely to set off the next financial collapse triggered by their counterparty defaults.
The Rest…HERE