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This Australian story covers the global effect of the collapse of the US sub-prime lending market, that spreads the risk around the globe. As debts were not considered toxic at the time of their origination, this allowed the banks to package the debt and sell it to other financial entities like hedge funds, who then used these packaged loans as so-called assets, then used these so called assets to securitize futher borrowing from banks, creating a toxic cycle of debt.

While Greenspan touted the spreading of risk previously, what this has served to do instead, is spread the danger of contagion, now that the credit cycle is swinging the other way.

The financial analyst wraps up optimistically by saying, "The day of reckoning may be nigh!"