Maybe not a full collapse, but with everything going on in the world with foreclosures, the stock market on a wild ride, big debts coming due…what does the international media have to say about it and why isn’t the U.S. media thoroughly discussing the possibilities?
The Times Online says “The chief executive of one of America’s biggest sub-prime mortgage lenders has predicted that the current “dislocation” in the US home loan market could be the most severe since the Great Depression in the 1930s.”
The Telegraph in the UK says “Britain’s biggest banks could be forced to cough up as much as Â£70bn over the next 10 days, as the credit crisis that has seized the global financial system sparks a fresh wave of chaos.”
The Independent says “Don’t say you weren’t warned. The FTSE 100 crashed 122.1 points on Friday. If we were not in the midst of a financial markets whirlwind, that might be considered alarming. But the credit crunch caused initially by the US sub-prime crisis is still unfolding. The size of the losses at most banks remains unknown and the web of interconnecting loans between banks that have borrowed debt to buy other types of debt is still to unravel.”
I am not an alarmist by nature, but it is a little disconcerting to see so many things written overseas about the state of our economy but not much written here. The only thing I found written in the U.S. media that kind of mirrored the international papers was an article on CNN.com from an analyst who said “the best solution to the crisis plaguing financial markets is to let cash-strapped borrowers default and their lenders go bankrupt, rather than slashing interest rates.” Thoughts?