Financial Services Bloodbath

19 Feb

The NYTimes warned of the impending crisis in Credit Default Swaps this weekend.  According to their piece:

Few
Americans have heard of credit default swaps, arcane financial
instruments invented by Wall Street about a decade ago. But if the
economy keeps slowing, credit default swaps, like subprime mortgages,
may become a household term.

The
market for these securities is enormous. Since 2000, it has ballooned
from $900 billion to more than $45.5 trillion — roughly twice the size
of the entire United States stock market.

And now we’re seeing things unravel down under:

Turmoil in Credit Default Swaps and other derivatives is now affecting the Australia & New Zealand Banking Group.

Stock Market Crash

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