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| THOUGHT PIECES |
OVERVIEW
Sub-Prime Armageddon
The State of the Market Surveyed
October 2007
The recent market turmoil has been unprecedented in terms of its nature and voracity. Ben Bernanke has recently stepped in and agressively cut US rates by 50bps in an attempt to head off recession and calm markets. The future remains unclear. Given easy money has been the cause of the problem should easy money also provide the solution or are we just prolonging the inevitable post party hangover!
In this Five Oceans Thought Piece, we examine the background to what has occurred, the anatomy of the crisis and contemplate the future.
The piece covers issues such as;
- Historic decline in the stock market volatility and credit risk premia,
- Changes in the macro economic environment via rate raises, the reappearance of inflationary risk, deceleration of the US and Global economy and increase in defaults,
- The impact of securitisation and their ownership, and
- The resulting fall-out of the Sub-Prime armageddon.
 Back to Thought Pieces
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