The Daily Cable - Battling The Global Financial Crisis(thedailycable.com) There has been a lot of discussion about how different countries have went about coming out of this deep recession, if it is indeed limited to that, or more frighteningly the severe chance of an economic double dip and probably further deterioration past that point. Why am I so confident that if there is a double-dip, equities will tank? The answer lies in how the major central banks and their play toys, have “gotten out” of this crisis. I will look at the Fed and RBA.<p>Let me start by talking a little about the Global Financial Crisis (GFC). If you are an advanced know-all person, please skip ahead. The GFC is widely believed to be caused by greed and as a result the almost totally unregulated sub-prime market. The truth is this is correct to some extent, however it is not the start and not the end. While Investments created pooled investments of these loans and bet against them while saying they are wonderful, behind the scenes a continued problem was brewing. A problem that started in the 1970′s when banks altered the way they approached loans..... |
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