[AlaskaErik]

There was no way in hell I was going to use an ARM. I have a 15 year fixed rate that will be paid off in 10-12 years.

[TigerLikesRooster]

Uncertainty and poor information about the risks associated with complex financial instruments. Greater transparency is needed.

Which Greenspan and many others fought tooth and nail. Many of them chanted the mantura, "The market will sort it out. No need to worry."

Globalisation has meant crises spread faster around the world since, for example, US mortgage debt is owned by investors from Germany and the UK to China and Australia.

Did they not know this? If they have just realized it, they are too incompetent to run the financial system. However, U.S. managed to outsource financial risks to other countries. At least in the recent subprime episode.

must ensure their investment mandates do not lead to an over-reliance on agency letter ratings

I thought that they were more than eager to do this because the alternative is the imminent severe market crisis.

[wolfcreek]

“With the crisis having originated in the US, all eyes are now on the American property market.”

Are people in this country the only ones who took out these stupid loans? Somehow, I think not.

[BlabItGrabIt]

...while the world economy will suffer if the high interest rates in credit markets persist.

Ergo, a further lowering of interest rates 50-100 basis points today will solve those problems.

[HarleyD]

This is a crises but property can only go so far down. The housing market dropped about 15% in my neighborhood but it seems to have stabilized. I bought some retirement property two years ago and the price has remained steady. Land still remains a scarce, non-replenishable resource.

[DustyMoment]

Yes and the moon MAY be made of green cheese!! Mars MAY be home to little green men and Bill MAY really have had sex with that woman - Miss Lewinsky, after all!!!

Or this MAY be more “much ado about nothing” to fill up vacant newspaper space!

[texastoo]

Maybe the US will qualify for an IMF loan. LOL