Chris Rice
OpedNews.com
A crashing housing market appeared to be something that could be weathered by other growing sectors of the US/Western economies. Then, the inevitable credit dominoes started to fall, after the mortgage delinquencies fell. Next we entered a scary August and September world credit crisis, as huge forms of liquidity, formerly seeming in endless supply, rapidly dropped to nothing. That would be the securitized credit markets.
Rapidly, the emerging losses in securitized credit, from CDOs, MBS and such (packages of loans such as mortgages sold off as securities and derivatives) caused a cascade of falling confidence in our banking sectors. All of a sudden, the credit crisis spread from the mortgage derivatives markets to the commercial paper markets in an almost instantaneous fashion. More
Sphere: Related ContentTags: 2009, commercial paper, derivatives, Economy, Great Depression, mortgages, securities
