Weekend Reading: A Synchronized Disaster

Welcome to another edition of Weekend Reading. First a look back at the week that just finished, then a look forward to the week ahead, and finally, some articles and papers worth reading.

We are deep in dangerous times. Last week was the worst week for the major markets in years, we are down more than 20% percent across the board for the year, and things looks like they will only get worse from here. The Dow ended the week down 7.3% percent, the S&P 500 fell 9.4% and the Nasdaq lost 10.8%.

Welcome to a synchronized global credit crisis, the likes of which we haven't seen since the Great Depression. Banks worldwide are hoarding cash in the face of weakening balance sheets, bank failures and an incredible demand from depositors for cash. The result: a complete breakdown in global financial markets, with trust nonexistent and the weakness now spread to the broader economy. ...