Embry - We Have Never Seen Anything Like This In History

Embry describes counterparty risk in the excerpt I parsed out.

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/8/6_Embry_-_We_Have_Never_Seen_Anything_Like_This_In_History.html

If things become really unsettled and chaotic in the interest rate world, I promise you there will be massive winners and massive losers in the derivatives game.  But the bottom line is the losers won’t be able to pay, so the winners can’t win.  So I just don’t see this ending well.