The more I read the more I'm beginning to understand the scope of the problem and why the words "systemic risks" were used. Yet when I realized these CDS's and CDO's are larger than the world's GDP that's when I knew this problem was too big to bail, that's right too big to bail not fail. These banks and companies heavy in CDS's, MBS's and CDO's will either have to fail and their parts be sold off in auctions or all of these CDS's will have to be declared null and void. No matter how they try or try not to fix this problem the results will be catastrophic because of the enormity of wrong way bets. This isn't just systemic risk this is systemic destruction and they'll have to rebuild and remake the whole financial backing of the economy. What it seems they've decided to do is to take it down in slow motion, let people get their feet wet and warm up slowly to the size of the problem and how it will spread to all sectors in one way or another. They want to avoid panic, tricky game, seems almost impossible but maybe it's the only choice.

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AIG was on the wrong side of the bet and Goldman Sachs was on the right side. It was crazy, enormous betting and risking of the World's economy. All because of a black swan (housing bubble burst).

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