16 September 2008

Trying to make sense of economics news

Today, the top news story is plummeting stocks due to the bankruptcy of an American investment bank, a bank purchase and an insurance company facing a liquidity crisis.
(I don't know what to think of the following "reassuring" assertion: "In a briefing in Washington, the Treasury secretary, Henry M. Paulson Jr., said the financial markets were going through a tough time “as we work off some of the past excesses,” but that Americans could “remain confident in the soundness and the resilience of our financial system.”" - Resilience of our financial system?)

The autodidact, or rather, dilettante, in me is trying to understand bits and pieces by reading about the bank system in the US here and here.

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