Anatomy of the American Financial Crisis: How It is Turning into a Worldwide Crisis by Rodrigue Tremblay

Anatomy of the American Financial Crisis: How It is Turning into a Worldwide Crisis

by Rodrigue Tremblay / October 13th, 2008 (0)

The basis for optimism is sheer terror.

– Oscar Wilde

[After the March 2008 Bear Stears bailout]

As more firms lost access to funding, the vicious circle of forced selling, increased volatility, and higher haircuts and margin calls that was already well advanced at the time would likely have intensified. The broader economy could hardly have remained immune from such severe financial disruptions.

– Ben Bernanke, Fed Chairman (March 2008)

In accounting 101 we learn that high yields equal high risk. We know the CEOs had an incentive to disregard this because they were getting huge bonuses.

– David Hartzell, dean of the University of Delaware’s …
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http://www.dissidentvoice.org/2008/10/anatomy-of-the-american-financial-crisis-how-it-is-turning-into-a-worldwide-crisis/

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