They should mention that each "debt" has a counter party that has an "asset". Ie, net zero. Which doesn't resolve the liquidity issue, but it's not a black hole like they make out. In addition, it's not clear they are netting across all transactions. Many of the players in this market have offsetting positions.
It's derivatives. It is what it is. Marking everything to market all the time isn't a great answer either.
It's derivatives. It is what it is. Marking everything to market all the time isn't a great answer either.