The story

This is a story from a movie about Russian tycoons. Plato and his friends are standing by a statue of Lomonosov in Moscow. Plato is telling this story. “Say I owe $1 to Mark and Mark owes $1 to Larry and Larry owes $1 to Moussa and Moussa owes $1 to Volodja and Volodja owes $1 to me. Than along comes Lomonosov and gives me $1 for one of my gloves. With this $1 I pay Mark and Mark pays Larry and Larry pays Moussa and Moussa pays Volodja and Volodja pays me. Lomonosov however cahnges his mind and returns the glove and gets his $1 back. Where we stand now? Lomonosv has his $1, I have my glove and the debt is gone. Nice isn’t it.”

The repetition

Replace $1 with $100 Billion and Lomonosov with the Fed and you’ll get the US Financial system in summer/fall of 2008.