ironphoenix (ironphoenix) wrote,

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Well, it looks like some is happening. itlandm brought my attention to a fairly important harbinger of an economic crash: the banks don't trust each other to stay solvent. For details, see these three articles from The Economist.

ETA: This is looking serious. Here are a few more references from other sources:ETA some more: The Canadian situation is summed up in this article from The Globe and Mail.

ETA one (last?) time: The US Federal Reserve dropped its preferred rate by 0.5%. This is stabilizing markets, but I expect it to pull the US dollar down. This is, I think, a painful but prudent and necessary move on their part: the greenback is overvalued, and this will help adjust it without catastrophic consequences.
Tags: economics
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