The Panic of 2007

The following article The Panic of 2007 was penned by Mr. John Mauldin, Frontlinethoughts.com,

• You cannot explain the problems with just one or two items. A perfect storm of this sort takes a number of factors all coming together to work its mischief. Bad mortgage underwriting practices, bad rating agency practices, a destruction of confidence, excessive leverage and then the withdrawal of that leverage, the need for yield, greed, and complacency which then in a Minsky moment (explained below) becomes paralyzing fear - all play their part....

Do give the rest of this highly interesting article a read: http://frontlinethoughts.com/article.asp?id=mwo081707