A Voluntary Contraction of the Credit Market resulting in the Involuntary Liquidation of Physical & Derivative Assets at a Material Loss Causing a Severe Recession or even possibly a systemic financial meltdown
Krugman says we need equity injections and guarantees of interbank lending to restore confidence in banking system on a global basis and letting Lehman collapse was a mistake.
Krugman Last Chance to Avert Great Depression
Krugman says we need equity injections and guarantees of interbank lending to restore confidence in banking system on a global basis and letting Lehman collapse was a mistake.