Cramer: 'Dysfunctional' Banking System Puts U.S. 'Totally' at Risk of 'Great Depression No. 2'

businessandmedia.org ^ | September 11, 2008 | Jeff Poor

[Toddsterpatriot]

Someone with such unusual brilliance must be worth billions.

[Mase]

And live on the French Riviera.

[ex-Texan]

Google is your friend: Collateralized Debt Obligation (CDO)

CDOs were used universally. Why? Because lenders make money by passing debt onto other business entities or other investors. No lender wants to take on the risk themselves. They want to pass it along to other people. Credit was like a hot potato. But loan originators were under pressure to write more and more loans. That was fine for a period of time. But it was a bit like playing monopoly with real money.

Video: Now even the Aussies are dealing with the Credit Crisis

[ex-Texan]

Sorry, bad link:

Video: Now even the Aussies are dealing with the Credit Crisis

[Calpernia]

Psst, hey buddy, want to buy my debt?

;)

Thanks ex-tex!

[GOPJ]

We've never been in this kind of “perfect storm” before... so what do you think it will be?

Inflation buy gold

- depression -buy P&G and pharm

or foreigners freak at massive debt and feel treasuries aren't safe, pull their money out and we have interest rates at 20% and the dollar's not worth crap...

What's your take?

[M. Espinola]

October could bring yet additional serious banking and equities surprises -- worldwide.

All-out effort to rescue bank is a money hunt

EU finance chiefs still see no end in sight to crisis

[LomanBill]

>>What’s your take?

Let it burn.

When it’s finished, rebuild from the ashes; begin with a foundation of the idea - that the purpose of governance, the function of government, is to secure the inalienable rights of the governed.