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Politics : GOPwinger Lies/Distortions/Omissions/Perversions of Truth -- Ignore unavailable to you. Want to Upgrade?

To: geode00 who wrote (140849)	10/11/2008 12:28:19 PM
From: JBTFD	1 Recommendation Read Replies (2) \| Respond to of 173976

This is how I see it. The credit markets are going to shrink, because no one wants to lend money when it is impossible to assess risk. The rating agencies have utterly failed in their duty, so now the faith that the whole financial system and debt system are based on is broken. It is a very difficult thing to repair broken faith. So whoever it is that has issued credit default insurance (swaps) is going to be in a world of hurt. AIG is one, but I would guess there are many more. As I see it they are trying to do a quick fix on a problem that does not have a quick fix. It ends up like pushing on a string. I think this weekend they will come out with some pronouncements like they have got a handle on it, and the markets might bounce next week. But the long term problems remain.