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'Tinker Bell Market' Fallout Wallops Taxpayers  

Posted Apr 1, 08 12:00 PM CDT in Business    Most Covered

(newser) – Although he doesn't foresee long-term catastrophe, Allan Sloan of Fortune sounds an alarm in today's Washington Post, saying he's "more nervous about the world financial system now than I've ever been in my 40 years of covering business and markets." He dissects "the collapse of a Tinker Bell financial market, one that depended heavily on borrowed money that has now vanished like pixie dust."

Sloan analyzes the roots of the current situation, explains how it's similar to and different from 1929, predicts the downfall of the American dollar, and suggests that Bear Stearns debt-holders "erect a statue to Bernanke." In the end, "all this money being thrown at the debt markets will stabilize things," Sloan argues. "But the costs will be steep."

Source Washington Post

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'Tinker Bell Market' Fallout Wallops Taxpayers
Treasury Secretary Henry Paulson takes a reporter's question after announcing the biggest overhaul of financial regulations since the Great Depression.   (AP Photo/J. Scott Applewhite)
'Tinker Bell Market' Fallout Wallops Taxpayers
In this illustration released by Disney Parks, supermodel Gisele Bundchen, left, is portrayed as Wendy Darling, beckoned by dancer Mikhail Baryshnikov as Peter Pan and actress Tina Fey as Tinker Bell.   (AP Photo/Disney Resorts, Annie Leibovitz)
'Tinker Bell Market' Fallout Wallops Taxpayers
Treasury Secretary Henry Paulson announces the biggest overhaul of financial regulation since the Great Depression, Monday, March 31, 2008, at the Treasury Department in Washington.   (AP Photo/J. Scott Applewhite)
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housing crisis  • subprime crisis  • Bear Stearns  • mortgage crisis  • Henry Paulson


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