“The biggest risk in the financial markets today isn’t that a deflating housing market will trigger a stock-market bust, but that the huge expansion of risk-taking… will overwhelm the debt markets, creating a quick reduction in the amount of money available to borrow and forcing the global economy into a credit squeeze and recession.” – MSN Money, February 23, 2007
Chicken Smith View:
This MSN Money article by senior markets editor Jim Jubak is too important to ignore. Please read as much of the actual article and understand the reasons why we are all facing a serious economic downturn in the not too distant future.
As mentioned in one of my previous posts, these credit derivatives have pretty much invaded (poisoned) all forms of investments. Your current portfolio may not be safe, especially if you are diversified.