Wednesday, September 17, 2008


Meltdowns are happening. First Lehman Bros, then Merill Lynch, now AIG (which owns Manchester United, btw).

And it's all due to one word : subprime (which happened to be the topic of a recent exam I took).

The paper below examines this phenomenon, compares it to the East-Asian financial crisis of 1997 and looks at what the Fed plans to do about (as at May 2008).

Advice? Don't lend loads of $$ (but feel free to give) to people who can't repay you and quit speculating.

Greed is bad.

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