The financial chaos in the USA - a clearish explanation

[dagibbs]

Gacked from mycrazyhair, this is a pretty clear and concise explanation of the chaos in the US.

Apparently we are living in "interesting" times. Though, I must admit the common comparisons with the Great Depression are worrisome.

Comments

[beable]

Mollya ranting made it even clearer to me: http://mollya.livejournal.com/496202.html

[ironphoenix.livejournal.com]

That is a pretty good explanation, yes; thanks!

It's still hard to tell whether this is going to avalanche or settle gently, isn't it?

[dagibbs.livejournal.com]

I think we're already beyond "settle gently" and into small or big avalanche territory.

[ironphoenix.livejournal.com]

Well, the situation is definitely unstable; with the recent bailouts and non-bailouts, it seems to me that the remaining big players are under pressure to quickly take steps to secure their debt, but they have a chance to prevent it from going completely off the rails. If they do nothing, of course, they're headed the same way their predecessors are, but I think that some time has been bought and a warning given.

Even in the best case, though, some people are going to end up out of their homes because they're way overleveraged.