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US problems have nothing to do with Greece. What an absurd scapegoat from Greenspan, the incompetent loser that got us into this mess.
by bugsy 15y ago
US problems have nothing to do with Greece. What an absurd scapegoat from Greenspan, the incompetent loser that got us into this mess.
- anamax 15y ago> US problems have nothing to do with Greece. The argument is that US banks hold a fair amount of european bank paper and that european banks hold a lot of greek debt. If the greeks default, then those european banks are in trouble, which puts the US banks in trouble. We saw a variation on this at the beginning of the "great recession". US banks held too much Fannie and Freddie stock because the regulators gave it special status. When fannie and freddie went down, those banks became technically insolvent. I don't know what triggered Lehmann Bros' specific problems, but when it went under, that caused problems for its counterparties.