LAKE SHORE GOLD CORP 6.25 PCT DEBS T.LSG.DB

RE:derivative collapse is in the air..

[bigdaddycash]

You are most certainly correct that the derivatives market is a house of cards.  I worked in the fixed income derivatives market (specifically interest rate and cross currency swaps) and can state the ISDA boiler plate agreements include clauses that would cause implosion once counter parties start to default.  The agreements include broad acceleration clauses such that once an entity defaults on any other swap agreements or if their credit rating downgraded the deal is basically mark-to-market priced and immediately due.  This is why the Greece bond holders had to agree to a hair cut rather than force a default.  A default would have triggered a melt down in the massive deratives market in which ultimately all players are interconnected via a web of complex agreements between counter parties (trillions upon trillions of notional value) - kind of like the seven degrees of Kevin Bacon idea.