International Cat Speculators Since 2006

Posts tagged ‘2008 Financial Crisis’

Don’t Understand What Just Happened?

If you, like many don’t understand what just happened, indeed what happened to the world economy over the last year and a bit, I could point you to no better explanation than this. Not too long, not too technical, but covers all the right points.

As a response to the dot.com bust – and the additional panic caused by the World Trade Centre attacks of 2001 – the US and other central banks around the world slashed interest rates.

The aim was to give the wobbly economy a boost.

But as time wore on the cost of borrowing cash remained low. A global property boom created demand which was happily met by all manner of lenders.

As one astute commentator put it – they started lending to people like the characters from the TV show My Name is Earl.

At that point they were always headed for trouble.

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