An explanation someone else wrote
Dec. 28th, 2007 10:31 am![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
solarbirdOh look, here's a short article that does a pretty good job of describing why those insurer failures I posted about a little while ago matter: Seeking Warning Signs Outside Subprime Lending
The headline is stupid - we're long, long past this just being "subprime lending" - but the content is there. A complete unravelling would be $45 trillion. Yes, trillion. That's three times GDP and five times national debt. So everybody hope that's not going to happen, because if it does your best bet is to be long in things like booze, ammunition, and cigarettes - which is, in turn, a pretty good clue that it's not going to go down that badly. But the potential losses are still pretty huge.
The headline is stupid - we're long, long past this just being "subprime lending" - but the content is there. A complete unravelling would be $45 trillion. Yes, trillion. That's three times GDP and five times national debt. So everybody hope that's not going to happen, because if it does your best bet is to be long in things like booze, ammunition, and cigarettes - which is, in turn, a pretty good clue that it's not going to go down that badly. But the potential losses are still pretty huge.
no subject
Date: 2007-12-28 07:09 pm (UTC)