The following post appeared earlier Tuesday on RealMoney . Sign up for a free trial of RealMoney, and enjoy incisive commentary all day, every day.What's at stake with nationalization? Why do I oppose it so much? Why do I feel that its proponents are glib and over their heads and have done no homework and do not have a stitch of rigor? Maybe because I think that nothing is impossible for those who don't have to do it themselves. I have said again and again that as much as you may hate the bankers who got us here, it is well beyond the ken of this government to fix it. I have said that the analogies to the Swedish "success" of nationalization are chimerical, because the Swedish banking issues were small and manageable. I have said that you simply can't compare the two.
- 1.3 trillion in binding unfunded loan commitments.
- $80 billion in letters of credit.
- $1 trillion "matched" book of credit default swaps.
- $1.4 trillion notional swap book.
- $60 billion in liquidity commitments to conduits.
- $26 billion in residential loan guarantees related to loans sold but still serviced.
- I don't have the numbers handy on variable interest SPVs but they're not insignificant.