Stocks are in Hock, from Russ Sears
When in college towns the pawn shops are full of class rings, band instruments. Here in cowboy country you'll find guns, saddles and power tools. Cash is king when you have to pay the bills. It matters not that what the price is you sell, hock everything, gold, the family silver everything. Money coming in next week does you no good. It would seem to this simple minded investor that much of the "too big to fail" problem and CDS problems are really too big to fail quickly problem, due to cash and liquidity constrains. Perhaps some enterprising financial engineer/ legal team could develop a more orderly process, by developing a queue process for payoffs within counterparty risk and CDSs written in the future.