How large a problem are---Derivatives on the world's financial crunch??

Question

The turmoil in world financial circles- evidently is more than the housing market---was it just the first domino to fall?

Answer 1

I think a lot of the derivatives problem in financial reporting has been improved since the fall of Enron with a lot of the Sarbanes-Oxley act. The credit problem was largely due to careless lending on the side of both borrowers and creditors.

Answer 2

We are in the process of economic globalisation. The housing industry tend to sensationalise price movements with a view to keeping property market and associated industries active and generating and moving money. The credit crumch was triggered by an auditors error on his calculations of monies they had at their disposal to lend....life is more stranger than any fiction..