It is not the end game yet. But we are getting closer to an important inflection point in the credit crunch. The investment banks are capitulating. And none too soon, considering the whole financial system is galloping off a cliff. The current investment banking model is, quite obviously, not built to withstand a credit crunch. Why? Investment banks borrow short term so they can buy long-term assets. So far so good.
September 18th, 2008 | Dan Denning | 0 comments | ContinuedAll Posts Tagged With: "credit crunch"
Calling What’s Happening in the Economy a “Credit Crunch” is Misleading
It’s not something that just happens – and then it’s over. More likely, it is the beginning of a trend. Interest rates (real and/or nominal) tend to go up and down in long cycles that last about a generation – 25-30 years…
September 2nd, 2008 | Bill Bonner | 3 comments | Continued
The Great Dollar-Based Credit Expansion is Coming to an End
We’re sticking with our views and our investments - either until we’re proven wrong or we go broke, or both…
August 20th, 2008 | Bill Bonner | 0 comments | Continued
More Cash and Credit: How the Economy got Here in the First Place
This time, the financial authorities aren’t even opening the medicine cabinet. They’re afraid the patient couldn’t stand the treatment. Instead, they’re administering the old elixir that got the economy into serious problems in the first place - more cash and credit.
March 5th, 2008 | Bill Bonner | 0 comments | Continued