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December 06, 2007



Known unknowns, then?


I wrote a good article about the Subprime Lending Scam a lot on my blog. You also might be interested in the Compound Interest Paradox, which highlights the fundamental structural flaw in debt-based money.



Matt Munro

The basic problem is fractional reserve banking IMHO


All this implies something which I've heard banking types mention "off the record" which is that each bank has looked at how much of it's "mark to market" now looks like "mark to fantasy." Knowing that "the chaps over there in Bank X are pretty much like us" that means they guess Bank X has a similar level of "mark to fantasy" and so the everyone wants a bigger risk premium on loaned money.

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