So, I like to track the news about the trends and the consequences of the financial markets. Tuesday morning on Marketplace they ran during the first segment a story on the potential impact to the problem with subprime lending that have presented themselves of late.
Scott Jagow lead the story with: “ The U.S. subprime meltdown is rippling throughout all corners of the world. Standard & Poor’s says among emerging markets, Latvia and Iceland are the most vulnerable to serious problems from this.”
Of course, about this time, the little conspiracy guy inside me, you know, the one in the red smoking jacket with a black velvet collar with a copy of the Financial Times tucked under his arm and snifter of something iin his hand, started quoting from the movie Sneakers:
Cosmo: Posit: People think a bank might be financially shaky.
Martin Bishop: Consequence: People start to withdraw their money.
Cosmo: Result: Pretty soon it is financially shaky.
Martin Bishop: Conclusion: You can make banks fail.
Cosmo: Bzzt. I’ve already done that. Maybe you’ve heard about a few? Think bigger.
Martin Bishop: Stock market?
Cosmo: Yes.
Martin Bishop: Currency market?
Cosmo: Yes.
Martin Bishop: Commodities market?
Cosmo: Yes.
Martin Bishop: Small countries?
Now I am not trying to make a case for conspiracy here, but I am just saying the this information makes you wonder with how the markets have been acting lately.