The Risk of a Total Systemic Meltdown Is Now as High as Ever

September 30th, 2008

Via: Roubini:

The next step of this panic could become the mother of all bank runs, i.e. a run on the trillion dollar plus of the cross border short-term interbank liabilities of the US banking and financial system as foreign banks as starting to worry about the safety of their liquid exposures to US financial institutions; such a silent cross border bank run has already started as foreign banks are worried about the solvency of US banks and are starting to reduce their exposure. And if this run accelerates – as it may now – a total meltdown of the US financial system could occur. We are thus now in a generalized panic mode and back to the risk of a systemic meltdown of the entire financial system.

Research Credit: Pookie

Posted in Economy | Top Of Page

One Response to “The Risk of a Total Systemic Meltdown Is Now as High as Ever”

  1. pdugan says:
    October 1, 2008 at 5:11 pm

    Let’s hope the Soviet American slave state comes into being with the sell-out bill, so we can all enjoy the convenience of checking accounts.

    I’m ready to head out and start farming, just give me the signal.

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