I watched some of the videos.
What would happen if nothing is done? The credit market will implode. I have never heard that word used about a market. Aside from that, I did not see an explanation of what happened in Europe. There are two terms that are used in empirical finance:
The heat wave hypothesis assumes that volatility has only country specific autocorrelations, while the meteor shower hypothesis allows volatility spillovers from one market to the next. So this credit / financial crisis is most probably a meteor shower effect.
- heat wave effect
- meteor shower effect
Where Does the Meteor Shower Come From? The Role of Stochastic Policy Coordination