4 posts tagged with financialcrisis by stbalbach.
Displaying 1 through 4 of 4.
You know about the Great Depression, but do you know about the Long Depression? For a while now some have been suggesting we're in a "Third Depression", not so much like the Great one, but more like the Long Depression (1873–96) of 23 years (originally called the Great Depression). Suggesting "This slump won’t end until 2031". [more inside]
Synthetic CDO's are complex little known financial instruments (insurance contracts) that are on the brink of triggering "the most colossal rights issue in the history of the world, all at once .. mandatory." If, out of a list of several hundred major companies, any nine go bankrupt, the CDO's are in default, which would mean a mass transfer of cash (real money) from unsuspecting investors around the world goes into the banking system. How much? Nobody knows, but it’s many trillions. Banks will be flush with cash, perhaps ending the credit crisis, while many investors (individuals, charities, municipalities) will be wiped out. Alternatively, the triggering of default on the trillions of synthetic CDOs could be a disaster that tips the world from recession into depression. Nobody knows, but it won’t be a small event. Thus far the count is six: three Icelandic banks, Countrywide, Lehman and Bear Stearns.
The Dow went up today.. don't watch the Dow. Here’s the number that really captures the financial crisis [TED spread]. [more inside]
The Financial Crisis: An Interview with George Soros. "We are in the midst of a financial crisis the likes of which we haven't seen since the Great Depression." (video, April 4)