Thursday, June 28, 2007
Collateralized Debt Obligations?
I predicted this a few months ago.
The BIS (Bank for International Settlements, the world's most prestigious financial body) is suggesting that there are some serious problems with the economies of the various developed and developing countries in the world, where debt (both consumer and governmental) reigns supreme at the expense of any financial securities - much like just before the Depression in the '30s in North America, and much like the giant cluster-f@#k that the '90s turned out to be in Asia.
Everything about the world right now depends on low borrowing rates - i.e. cheap funding - and that isn't going to last forever. As for what to do about it - I personally have no idea. I'm much more interested in politics and economics than I am in financial issues such as personal management and [stock]market trends.
Just don't say I didn't warn you.
The BIS (Bank for International Settlements, the world's most prestigious financial body) is suggesting that there are some serious problems with the economies of the various developed and developing countries in the world, where debt (both consumer and governmental) reigns supreme at the expense of any financial securities - much like just before the Depression in the '30s in North America, and much like the giant cluster-f@#k that the '90s turned out to be in Asia.
Everything about the world right now depends on low borrowing rates - i.e. cheap funding - and that isn't going to last forever. As for what to do about it - I personally have no idea. I'm much more interested in politics and economics than I am in financial issues such as personal management and [stock]market trends.
Just don't say I didn't warn you.
