The best news is that all of this will pass. All preceding financial crises have. The bad news is that there will be more bad news. What started as bum subprime loans has now morphed into a full-blown bank credit crisis. Loans by banks are the oil that lubricates the economy, keeps its wheels turning. Without that oil, the gears will grind to a halt, factories won’t be built, buildings won’t be constructed, people will lose their jobs, etc. All previous financial crises were finite -- we knew how much Mexico needed to right itself; we knew how to stem Long Term Capital Management’s problem; we[...]
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[Source: The Money Blogs]
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