Daily Kos: Bank nationalization and you're not paying attention.: "There are $750 trillion in derivatives, or synthetic financial instruments, floating around out there today. Putting this in perspective there is about $75 trillion in global real estate and our global GDP is about $50 trillion. Measure it any way you like; what started out as a sensible, money saving risk management method started mutating about the time Bush got into office, and now it is fraud of biblical proportion.
What can we do to save ourselves from this?
Nothing. The loss has already occurred.
Read it and weep. That junk paper, six times the combined value of all human real estate and all human commerce, is everywhere. Think it doesn't effect you? Got a parent with a pension? Do you hold a life insurance policy? Do you work for an enterprise that is publicly held? That has funded part of its operation with a bond sale?
The unwinding of this mess must come and it will be the financial equivalent of a neutron bomb; the buildings will be standing, but they'll be emptied of people and the associated commerce."