Wider Implications of the Credit Crunch
The news on the financial front has gone from bad to worse. Eric S. sent us this: ECB lends $500 Billion to lower rates, and Stephen in Iraq found this article: Fed Loans Banks [Another] $20 Billion. And if that weren’t enough, K.L. in Alaska sent us this: ACA Capital Holdings Inc. was just de-listed by the New York Stock Exchange. K.L.”s comment was blunt: “[ACA Capital Holdings] is essentially bankrupt. It is one of the insurers of the financial instruments such as municipal bonds, hedge funds and CDOs that have been infected by toxic mortgages. These funds are becoming …