Will Grigg on the world's financial system unraveling before our eyes:
Denouement (n) -- The unraveling of a plot; a catastrophe....
From Webster's Unabridged Dictionary (1913)
There is something supernally appropriate to the fact that, in order to find the most suitable definition for just right word to describe the ongoing crisis of the financial system, we have to refer to a dictionary published in 1913.
We are now into the second year of the unraveling of the world financial system. It could be described as the Great Denouement (or final act) of a plot that began in 1913, when Congress created the Federal Reserve System, aka the Focus of Evil in the Modern World. So far the effects of the unraveling have had minimal impact on the larger economy.
This is about to change.
Last Friday, there were five globe-bestriding Wall Street investment banks. Today there are three. Lehman Brothers, a 158-year-old financial colossus, is headed for bankruptcy and oblivion. Merrill Lynch, which was following the same trajectory, was bought by Bank of America.
Read the rest