Posted by Sigismund on October 6, 2008, at 0:55:40
In reply to Re: Oops-- there goes the economy..., posted by Deneb on October 5, 2008, at 22:58:15
People lent too much money and now that the loans cannot be repaid they are going broke, and because some of them are too big to be allowed to fail the government will assume some of the debt.
Governments around the world seem to have decided they will not allow a run on the banks, which they have done by guaranteeing deposits.
But this isn't the end of it. It should have some way to go.
Actually, the 700B is going to be borrowed from the oil producing countries and the Chinese, isn't it, and will be a debt owed to them.
So it could affect how the world sees the US dollar as a reserve currency.
That's the best I can do. I know nothing about economics either.
poster:Sigismund
thread:854180
URL: http://www.dr-bob.org/babble/poli/20081002/msgs/855968.html