more boring economics stuff

[ajva]

I know people must think by now that I'm some kind of nutter Jeremiah-esque permabear muttering away in the corner and stinking of whisky, but in case you were wondering, it's things like this graph that make me wonder if we could be facing a total global meltdown economically, originating in the fundamental insolvency of the world's banking system.

Just saying. *swigs from bottle in brown bag*

Mind you, I remember my Dad saying something similar back in 1986 or thereabouts, so I expect everything will turn out OK.

Comments

[countess-sophia.livejournal.com]

There's another elephant in the room: the huge exposure that many US banks and financial institutions (and not only them, a number of European and, Chinese and Japanese institutions are also major offenders) have in various types of derivatives markets. The positions that many of them hold in these unregulated markets and the potential losses they face are so huge that domino collapses of big institutions are a very serious possibility, 1929 style. The fallout from the US sub-prime loans crash is a mere taster.

Soph x

[ajva.livejournal.com]

Agreed.