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Politics : The Obama - Clinton Disaster -- Ignore unavailable to you. Want to Upgrade?

To: Wayners who wrote (10449)	4/3/2009 4:55:14 PM
From: DuckTapeSunroof	Respond to of 103300

"Coincidence that these things happended simultaneously????" No, not at all. No coincidence. The economic crisis was perhaps triggered by 'sub-prime' problems (blow-up TEN TIMES in magnitude because at least 10 dollars in derivative securities were issued for every single dollar's worth of original sub-prime mortgage paper)... or perhaps it was triggered by the collapse of the Japan carry-trade (which had already gone as far as it possibly could in one direction... and so inevitably had to reverse itself at some point). Whether the 'chicken' or the 'egg' came first (arguments can be made for either...) matters not very much though --- BOTH PROBLEMS fed on each other, they mutually reinforced each other. But... as per always... it was the massive amount of LEVERAGE in the system (I-banks and 'shadow banking' participants levered 70-to-1) that BLEW the bubble and made certain there would be a huge crash. Without all that leverage --- no bubble and no crash.