Photo: ReutersIt will soon be 10 years since the world got the first inkling that the global financial bubble was floating towards a sharp pin. The bank implicitly admitted that it could not value the subprime mortgage securities that it held. European money markets froze in panic. Western central banks had to pump in liquidity to get the markets moving again. The leveraged pyramid of complex derivatives was based on the assumption that the fancy models to value financial assets were actually depictions of reality.

Source: Mint August 07, 2017 20:14 UTC