Everyone understands a falling stock market. The numbers go up and down and the media reports them every hour.
What is less well understood is that the debt market is vastly larger than the stock market and is in really deep trouble. It's not just the sub-prime mortgages anymore:
This from the Wall St Journal:
"Yesterday, the Michigan Higher Education Student Loan Authority, a state agency, said on its Web site that “due to the current and unprecedented capital-markets disruption” it will stop making loans under the state’s Michigan Alternative Student Loan, or MI-Loan, program. More than 100 Michigan colleges and universities participate in the program."
No one knows where this is heading but it is clear that the fast money guys on Wall Street, enabled by the Bush Administration and the once revered Fed Chairman Alan Greenspan, have created a mess of historic proportions.
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