So, what does a complete and total collapse of the
worldwide financial system look like

post from HousingPANIC - The Housing Bubble and Stock Market Crash Blog with an Attitude Problem on 12 October 2008 06:52:00 AM. © HousingPANIC - The Housing Bubble and Stock Market Crash Blog with an Attitude Problem

We're at the brink HP'ers.

There is now a chance, and a real possibility, that the entire worldwide financial system could implode.

Let that sink in.

OK?

So, what does that look like? Riots in the streets? Fuel deliveries halted? No food on the shelves? Banks and markets are closed and no access to cash at the ATMs? Companies disappearing in the night? Mass disorder and confusion? People selling everything for anything they can get? Paper currencies go worthless? World Series canceled? Flights grounded?

I have no idea what it looks like. I'm not sure if anyone truly does. But we're here. The brink. If it doesn't get better this week, starting Monday, we might fall off the cliff. The whole world. There will be no safe haven.

May you live in interesting times.

From FT:

No G7 official was sure the plan would work, so deep is the financial crisis. If it does not, the next steps would be one of two nuclear options: to guarantee all liabilities of banks, in effect nationalising the financial system, or for governments to seek to bypass financial institutions by lending directly to companies and households.

From the New Statesman:

We are witnessing the collapse of the world financial system. To have said that even a month ago would have been to invite ridicule, but now it seems only a statement of the obvious as banks implode, governments panic and investors run. The initial liquidity crisis that broke in August 2007 and drove Northern Rock to the wall has evolved into a crisis of insolvency and finally into a crisis of confidence in the entire financial system.

From the IMF:

The global financial system is on the brink of a meltdown and additional steps must be taken immediately by the richest nations to calm jittery bankers and investors, the International Monetary Fund warned Saturday.

"Intensifying solvency concerns about a number of the largest U.S.-based and European financial institutions have pushed the global financial system to the brink of systemic meltdown," said Dominique Strauss-Kahn, IMF managing director.

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