Global financial crisis may end 2009

The System is falsified – but which one, exactly?

Hello domino crash! The impact of the super-connected world finance system on itself (it is highly self-referential you know) is stronger than the 9/11 attack. Tokio with lowest stocks since 1987. German DAX today starts again with crash below 4.900. The following chart shows indicators of crisis and fear, so says econompicdata.blogspot.com. Anxious people start buying things they need in severe crisis: soup cans and tasers (S&P 500 is reference). Should I laugh or should I cry?

Crisis indicators? People buy more soup and ... tasers.

Crisis indicators? People buy more soup cans and ... tasers.

 

After Armageddon: Transparency will be the key

Global economy could recover as early as end of 2009, a former chief of the International Monetary Fund (IMF) told a business conference in Manila Tuesday.

 “… Michel Camdessus, former managing director of the IMF and an honorary governor of Banque de France, told audience attending the 7th Management Association of the Philippines in Makati City that monetary leaders need to meet several conditions to make sure the impact of the US financial crisis permeating around the world halts before 2009 ends.

He said that to kick-start the recovery of world economy, world leaders should “coordinate their actions well and start working to reform international credit markets.”

He stressed that transparency, especially in how the financial markets did their business, is the key.

The domino effect of US financial crisis was set off by the pyramid-like tumbling of the subprime housing, which was the underlying basis of several exotic financial products that are unregulated.” Ex-IMF chief: Global economy could recover by end 2009 | ABS-CBN News Online

Related: US financial crisis a “window of opportunity” for Asia | ABS-CBN News Online

BTW: There is a nice video explaining the complicated game the investment banks were playing. Or just shorter: The bottle was empty, when someone opened it at the end of the game – not even Schroedinger’s cat in it. 

Video: Marketplace Senior Editor Paddy Hirsch gives a bubbly explanation of the intricacies of collateralized debt obligations those financial instruments that got us into this financial mess.

Update 2008-10-08: Inserted two links

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About WS

foresight expert, technology analyst, strategy consultant

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  1. bwl zwei null · Woher kommt die Krise? - October 8, 2008

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