this is too complex for me to understand, page-2

40
Have been following and trying to understand this for a while because most commentators have put the potential debt default at between $400 -$700 trillion ... Soros is the lowest I have seen and the low figures are said to exclude the multipliers within the web. It appears to go something like:
A loans to B with expected regular repayments.
B insures with C in case it can't meet its repayments.
A insures with D in case B can't meet its repayments.
Both C & D spead the potential call with other insurers.
But A has borrowed from Z to loan to B and therefore A is also a B (with associated insurances).
And Z having loaned to A is also an A (with associated insurances)... and so the web grows ever wider.

Bear Stearns was bailed by the Fed because it is a major player in the web and if it had fallen it may have been the first domino.

cheers
marz