Unprecedented: The Fed Allowed Derivatives Trading on a Sunday
Sunday, September 14, 2008
In an unprecedented move, the Fed and the International Swaps and Derivatives Association allowed derivatives trading today, on a Sunday, to "reduce risk associated with a potential Lehman . . . bankruptcy."
Lehman holds $ 800 billion in derivatives.
As the very even-keeled and level-headed chief executive of Pimco, the world's biggest bond fund, said:
"This is an extremely, and I stress extremely, rare event. It also speaks to the more general notion that, in today's highly disrupted financial markets, the unthinkable is thinkable."
What is the "unthinkable" he's referring to?
Another great depression.
--MORE--
In an unprecedented move, the Fed and the International Swaps and Derivatives Association allowed derivatives trading today, on a Sunday, to "reduce risk associated with a potential Lehman . . . bankruptcy."
Lehman holds $ 800 billion in derivatives.
As the very even-keeled and level-headed chief executive of Pimco, the world's biggest bond fund, said:
"This is an extremely, and I stress extremely, rare event. It also speaks to the more general notion that, in today's highly disrupted financial markets, the unthinkable is thinkable."
What is the "unthinkable" he's referring to?
Another great depression.
--MORE--