Monday, September 25, 2006

Economist article about dangerous business debt

An article in The Economist about how business debt is spiraling out of control and how much of it is an unregulated market.


Here is one of the more interesting quotes in the article:

“The same factors that may have reduced the probability of future systemic events, however, may amplify the damage caused by, and complicate the management of, very severe financial shocks. The changes that have reduced the vulnerability of the system to smaller shocks may have increased the severity of the larger ones.”

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