Imploding Credit Bubble to hit $1 Trillion..
At least according to this writeup at The Washington Independent. Now, I always preface anything I write on finance with the fact that I can’t really find my ass with both hands on this topic..so I read plenty of stuff by folks that know wtf they are talking about. This gentlemen seems to know his stuff. His opening salvo:
The current credit and financial crisis, unusually, is almost entirely the creation of the financial services industry.
Financial services now dominates American business to an astonishing degree. Though the industry accounted for only about 16 percent of corporate output in 2007, it racked up more than 40 percent of corporate profits. From 2000 through mid-2007, total American stock market value grew about 6 percent, while the value of financial services stocks grew by 78 percent. And though total corporate profits roughly doubled, business investment was almost flat.
Some scary stuff..and no..its not all BushCo’s fault, Alan Greenspan is a major culprit 😉
If you like to read the first part of this series..here is that link, and its entitled: Credit Crisis Only Begins With Mortgages.