Business Spectator - A tsunami of hope or terror?:
"It is now getting very interesting. The three Icelandic banks have defaulted, as has Countrywide, Lehman and Bear Stearns. AIG has been taken over by the US Government, which is counted as a part-default, and Freddie Mac and Fannie Mae are in “conservatorship”, which is also a part default – a 'part default' does not count as a 'full default' in calculating the nine that would trigger the CDS liabilities. Ambac, MBIA, PMI, General Motors, Ford and a lot of US home builders are teetering. If the list of defaults – full and partial – gets to nine, then a mass transfer of money will take place from unsuspecting investors around the world into the banking system. How much? Nobody knows, but it’s many trillions."

Another twist to the collapse of the financial world and an intriguing possible answer as to why these bailouts are so very important to the big boys.

via Robot Wisdom