So do you know why the financial markets are currently in turmoil ? Do you understand what a CDO is or how it’s been used in the traditional mortgage market ?

All people see on TV are the soundbite voxpops from the man in the street….”it’s gunna make it harder to pay off your credit cards (sic!) innit ?”

We hear things like ‘Credit crunch’ or ‘Credit squeeze’ but here’s a perfect depiction of how the traditional mortgage lender/borrower relationship was aggressively co-opted by the financial markets and leveraged for gain while the market was booming…of course now it’s gone flat and the financial markets inelastic ability to handle the contraction in the global liquidity pool is all too apparent.