Tuesday, Mar 25, 2008
Has the meltdown been delayed?
The Telegraph: Fed's rescue halted a derivatives Chernobyl
"There was the risk of a total meltdown at the beginning of last week. I don't think most people have any idea how bad this chain could have been, and I am still not sure the Fed can maintain the solvency of the US banking system."
Posted by sold 2 rent 1 @ 10:34 AM (374 views) Add Comment
5 Comments
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1. renting2 said...
The more you read about this financial 'system' the worse it gets.
Does this now mean that no bank at all can be allowed to flounder and go under? If that is so, then are not the central banks underwriting everything by default?
What a nightmare!
2. Plato said...
Must Read Article revealing the complexity and interlinking within the financial world. In actual fact to me it's of astronomical proportions - almost infinite and so reliant on balance that it's beyond my perception. All I can see is a fragile mass of figures that can explode or implode through some kind of chain reaction.
s2r1 :
Re yesterdays complaints. I've a feeling that ultimately the only - shall we say: Way to 'hurt' - mankind is by a conceived attack on his pride in the literary sense. Pride has several negative definitions and one positive.
Yours is the one - Need I say more?
3. Davidg said...
> I don't think most people have any idea how bad this chain could have been
they do if they read HPC, in fact you would imagine that we will all be living in caves soon.
4. techieman said...
Renting 2 (rightly or wrongly) one of the purposes of the Central banks IS being the lender of last resort. So yes you would have thought they would have regulated practices a little better....i can feel people having another go at Bankers bonuses coming on........http://en.wikipedia.org/wiki/Lender_of_last_resort
5. Russmack said...
Central banks being lenders of last resort, and attempting to keep banks going, contradicts the Zeitgeist video which talks of failed banks serving to consolidate the central banks' control of money. Assuming there's been a change of strategy, any theories?