But if you accept the premise that the last thirty years have seen fiat money credit bubbles leak their way into all sorts of markets, and one by one that those markets have topped out and fallen as the supply of cheap money fell away…and if you look at the huge levels in household debt growth in Australia (primarily mortgage debt) and see just how exposed the banking sector is to a) wholesale borrowing costs from overseas and b) residential housing… well then?
July 5th, 2010 | Dan Denning | 15 comments | ContinuedAll Posts Tagged With: "deposit insurance"
Bailout Bill Leaves Markets in Deep Freeze
Global share markets don’t look very convinced the U.S. Senate’s passage of a bailout bill will purge the financial sector of the bad debts which are killing it. Perhaps it’s because the Senate bill was such a joke. The plan, or FrankenTARP as we are now calling it includes restriction on judicial review, a suspension of the normal rules for drafting and debating legislation in front of Congress, and allows for the President and Treasury Secretary to come back as many times as they’d like for more. money.
October 3rd, 2008 | Dan Denning | 2 comments | Continued
