Crisis Risk Moves from Credit to Politics

“The causes of the global financial crisis of 2008 were almost entirely flaws in the credit system based on leverage, exotic financial instruments, and a sharp drop in American housing prices. Just as that cycle has begun to end,  and GDP in major nations has begun to recover, another potentially damaging set of risks has emerged and they are almost entirely political. That trend was confirmed today as Japanese Prime Minister Yukio Hatoyama resigned.” Read more.

 

Douglas A. McIntyre

247wallst.com, June 1, 2010.