Gregory Djerejian at Belgravia Dispatch has a good tip if you’re after an informed blog to decode recent happenings on the financial markets: Nouriel Robini’s page on RGE Monitor, a macroeconomic analysis site. Robini’s diagnosis:
Investors are now realizing that:
– We are at a “Minsky Moment”: the deleveraging of a credit boom driven asset bubble has just started
– This is an insolvency/credit, not just a liquidity, crisis.
– This credit crunch is much worse than the liquidity crisis in the 1998 LTCM episode
– You cannot solve insolvency problems with liquidity injections
– When you have unpriceable uncertainty rather than measurable risk investors panic; or as Bill Gross put it yesterday we are in a “Where is Waldo?” world now where subslime Waldos are popping out daily in the most unexpected places.
