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<p>[QUOTE=&quot;InfleXion, post: 1638735, member: 29012&quot;]Not so impossible. London is the only city in the world that allows banks to do infinite rehypothecation (re-loaning of the same asset to infinity to boost balance sheets even though there is only the one initial asset backing the whole thing). So if there&#039;s a one in a million chance somebody won&#039;t pay then there&#039;s a 1000% chance the counter party risk chain will cause a black hole requiring more infinite rehypothecation to fill it, because the only real assets they have are already highly leveraged as it is. If they have an operation in London then it&#039;s a pretty safe assumption they have counter party risk. That&#039;s where the AIG fraud stemmed from, Bear Stearns bets, MF Global bets, the list goes on. The ones who are technically bankrupt are the ones who are exposed to more risk than they have assets. That would essentially be all those which are too big to fail.[/QUOTE]</p><p><br /></p>

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