– The Real Bubble Isn’t Stocks… and It Will Make 2008 Look Like a Picnic (ZeroHedge, Oct 2, 2014):
The 2008 crisis was just a warm-up.
The 2008 crisis was a banking and equities crisis. In the simplest terms, investment banks, leveraged to the hilt with garbage mortgage derivatives, became insolvent and began to collapse.
This collapse triggered a selling panic throughout the financial system as every financial entity questioned the quality of the assets backstopping its derivatives trades. The derivative market was over $700 trillion at the time. So just about every major global bank had broad exposure to this market.
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