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I think the financial system has stalled, not crashed. There's quite a bit of wait-and-see happening, and credit is very much harder to come by than it was a year ago - which is hardly a bad thing considering how money was being loaned to anyone who could pass a medical test for the most rudimentary evidence of brain activity.

But the system as a whole is still functioning. Money - fictional as it is - is still being counted.

We'll know the system has crashed when trade goes back to barter and/or gold.

by ThatBritGuy (thatbritguy (at) googlemail.com) on Mon Mar 3rd, 2008 at 08:29:07 PM EST
Well, there is an immense amount of existing credit = money swilling about the system (particularly hedge funds and sovereign wealth funds), and that is of course where people are looking for finance now that credit creation by intermediaries is (terminally, IMHO) fucked.

Bilateral "Trade" credit will always be a continuing fact of commercial life.

But I do think we have seen Peak (Bank) Credit.

"The future is already here -- it's just not very evenly distributed" William Gibson

by ChrisCook (cojockathotmaildotcom) on Tue Mar 4th, 2008 at 06:14:06 AM EST
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The Crash of 29 lasted a few days to a few weeks depending on how you measure it, but then the markets continued sliding down for many years.

Maybe the crash has already happened, maybe not.

We have met the enemy, and he is us — Pogo

by Migeru (migeru at eurotrib dot com) on Wed Mar 5th, 2008 at 06:42:10 AM EST
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