Yeah, it's a hell of a thing. Our conversation a couple weeks ago about how this whole situation was hastening the end of USD as the global reserve standard --- but that is NOT going to happen now.
What neither of us realized then, and Stuart reminded me of not long after, is the INSANE exposure of non-US financial organizations. While we fretted over the wisdom of having let some companies run at 12:1 or 20:1 leverage, Deutsche Bank was at 50:1.
While this means that there's no safe haven anywhere from this crisis anywhere in the world, it also means we probably won't see gross devaluation of the dollar relative to anything. It feels like this increases the chances for a soft landing somewhat.
![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
no subject
Date: 2008-10-11 12:40 am (UTC)What neither of us realized then, and Stuart reminded me of not long after, is the INSANE exposure of non-US financial organizations. While we fretted over the wisdom of having let some companies run at 12:1 or 20:1 leverage, Deutsche Bank was at 50:1.
While this means that there's no safe haven anywhere from this crisis anywhere in the world, it also means we probably won't see gross devaluation of the dollar relative to anything. It feels like this increases the chances for a soft landing somewhat.