Posted 29 July 2007 - 08:56 PM
thx Kisa, I was wondering about the status of that chart....so far the credit crunch is being labeled a 'repricing of risk'. But as you've noted earlier, this has been in development since last year. Last night, I was watching the Smartest Guys in the Room, the documentary about Enron. Their problems started appearing in the fall of 2000, but didn't really start spiraling out of control until the following summer, resulting in a late year bankruptcy filing. These things don't happen overnight ya know, and I seriously doubt a 4-day selloff is all it takes to adequately reprice the cost of capital, especially since I imagine there's still plenty o' bad news yet to be released to the mainstream media.
Markets are so efficient these dayz with global information networks, it wouldn't surprise me one bit if the US is staring a recession right in the face in the coming weeks. So 'twill be interesting if this so-called repricing of risk expands into full-fledged systemic risk/global credit crunch.