European Tribune - Comments - The sky ain't falling

The sky ain't falling | 84 comments (84 topical, editorial, 0 hidden)

Re: The sky ain't falling (4.00 / 5)

However, the whole US economy runs on credit, foreign credit. What if that blows up as consequence of the housing market slump?

_{*Lunatic*, n.

One whose delusions are out of fashion.}

by DoDo on Mon Nov 5th, 2007 at 05:27:37 PM EST

Re: The sky ain't falling (none / 0)

I agree foreign credit will dry up. I on the other hand doubt very much it will be because of the housing market slump, at least not directly.

Nil aon leigheas ar an ngra ach posadh

by redstar on Mon Nov 5th, 2007 at 05:45:15 PM EST
[ Parent ]

Re: The sky ain't falling (4.00 / 5)

And when foreign credit does dry up - which is due to the combination of fiscal and trade deficits, and the impossibility of raising interest rates to protect the dollar - the noise you will hear will be the sky falling.....

"Any economic unit can emit money. The serious problem is to get it accepted" Hyman Minsky

by ChrisCook (cojockathotmaildotcom) on Mon Nov 5th, 2007 at 06:12:08 PM EST
[ Parent ]

OTOH, there has been far more foreign ... (none / 0)

... participation in US mortgages in this asset bubble than previously ... precisely because of the collateralised debt obligations that created marketable financial assets from what was at one time likely to be either held by the originating bank to maturity, or sold off to Fannie Mae and Freddie Mac.

I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.

by BruceMcF (agila61 at netscape dot net) on Tue Nov 6th, 2007 at 11:01:37 AM EST
[ Parent ]

The sky ain't falling | 84 comments (84 topical, 0 editorial, 0 hidden)

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