If even 25% of these contracts go bad, you are talking about $250 or so trillion needed to be covered. ( this is if the total is $1 quadrillion) The global GDP is only 55 to 60 trillion a year. The definition of economic depression is a 5% drop in GDP over 2 consecutive years.[/i]
To whom do they need to pay?
If we, the taxpayers, are the ones receiving the reward of our "good" bets, then we should be happy with the 250,000,000 million, since that would about double the wealth of every taxpayer in the world!
If we, the taxpayers, are not receiving the money, why should we be held accountable for paying "Bank A" the amount equal to all our net worth combined, especially as the counterparty, Bank B, that is on the winning side, is provably owned by the same people as "Bank A"?
If my left pocket makes a bet, valued at the size of the world, with my right pocket, on the condition that whichever pocket wins, the rest of the world must pay everything that they have to this pocket, well, let's just say I have been hospitalized for less
