Wednesday, November 26, 2008

Economic miasma

On the big picture... For one little story that really explains why the economic problems seem so intractable.. The Financial Times explains how the Lehman Bankruptcy is having impacts far beyond the bankruptcy of a single firm. The issue at the end of the day is that too many assets out there are simply illiquid for a host of reasons which is keeping money from flowing. See:

Groups in Lehman asset trap

Which reinforces my own view of the situation at hand in the world financial markets. Until these markets just start running again, a lot of the world's money is locked up and unusable. In this case, the Lehman bankruptcy seems to be preventing some folks out there from even getting information on what their assets are, let alone what they are worth or having some hope of liquidating them anytime soon. In our uber-technology driven world where information is said to be more powerful and abundant than ever before, it's just mind boggling that the issue for many is just figuring out what they own. From what I hear the entire Lehman Bankruptcy in Europe in particular is just such an unimaginable mess that it will be a long time before parts of it are unwound, or in some cases it might be never.


Anonymous New Jersey Real Estate said...

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Thursday, November 27, 2008 4:29:00 AM  

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