Friday, October 03, 2008

The Scariest Sentence I Have Read Today

"When the price of credit-default swaps on some company's bonds gets way too high, people look at that and it affects the stock price, it affects their ability to borrow, it starts to affect their credit rating, and their rating affects the credit-default swap price in turn. It becomes a spiral."

Here' s more.

1 comment:


That's true, crises can be self-fulfilling and usually they were.