IN THE SHADOWS OF DEBT
Who is to blame for the current crisis?
Massive borrowing, hedge funds, credit default swaps (CDSs), collateralized debt obligations (CDOs) and other instruments seem to be part of the current trillion dollar problem. What was known about these instruments and the risks attached to them in the recent past? There was actually quite a lot known right from the start.
A must read is The Economist’s article ‘In the shadows of debt‘ of September 21, 2006 (click here). In 2006, central bankers and supervisors worried about the risks to financial stability that could be lurking …
Read the rest »
