Marketing Commentary- Q3 2008
What’s Been Happening? Since we last wrote this piece three months ago the financial markets have been in turmoil. The problems in the credit markets have spilled over to the stock market and we have witnessed a crisis of confidence in the financial system not seen since the Great Depression. Starting with subprime loans and most recently moving to “credit default swaps”, banks have been forced by accounting convention to write down these assets to fire sale prices. The ensuing losses caused some banks to fall below the minimum requirements for capital imposed by regulators. To remedy the...
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