The Egocentricity of the Present Part 6 of 22
Of course, like exotic foods, consumption of new risk products can lead to indigestion, and even allergic reactions. Lately, we have witnessed many allergic reactionsin the form of losses and setbacksespecially among money center banks and other financial institutions whose fiduciary eyesas old Ruth Walgren would have saidsimply got too big for their stomachs. What began Winning Forex Trading as isolated pockets of trouble in the U.S. housing market soon spread to global markets in mortgage-backed securities, where many of the exotic home mortgage products were gobbled up. Soon it became obvious that financial market participants were gagging on the many types of structured credit productsnot just those backed by mortgagesthey were being served. As we approached the summer of 2007, this gag reflex reached a pinnacle; the larger banks found it difficult, if not impossible, to sell to others many types of loans; and the interbank lending market experienced intense liquidity pressures as banks became fearful of lending to each other for longer than overnight.
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