Now that some of my old predictions came to pass (Damn, I should book mark these).

Next crisis: The entire Credit Default Swap industry. Mortgage Backed Securities have pretty much collapsed. Essentially, nobody is sure wht the value is, so they can't trade them, they can't leverage them, and they can't pay back loans that (in many cases) they took out to purchase these things.

A lot of the swaps out there are hedges on Securities. If people start finding out that their Swaps are worthless, or the payer can't pay the payee, god help us all.

There may be a crisis of confidence in CDS notes. If it gets as bad as the crisis in Securities, and extends to all CDS paper, then all the governments of the world put together don't have the money for even a partial buy-out.

I don't think it will get that bad, but even jus mildl bad would dwarf the mortgage securities crisis.

Yeti