Credit Markets – Where are the simulators?

We have stock market simulators. A Google search will turn up many. But where are the credit market simulators?

Dan Travers, Product Manager Adaptiv Analytics for SunGard Capital Markets & Investment Banking discusses the need for them in Toward Comprehensive simulation of Complex Credit structures  and advocates for affordable simulators to make them widely available. But this may be more focused on bank risk and derivatives.

And so is Misch’s great post, Monte Carlo Simulation of CDO’s.

What we actually need now, apparently, is a simulator of the entire world economy. Here’s one for the U.S. economy Microsimulation model of national economy – Dan Kozub

The web site for Nations and Firms in the Global Economy by Brakman, Garretson, van Marrewijk and van Witteloostuijn provides some excel spreadsheets that might come close.

 EconGuru has a link to Virtual Bank simulator for the relationship between banks and central banks and bank policies and their affect on the economy.

Maybe these guys at EconomySim will have one when they are finished.

And if the world is finite, this may tell the story.

Apparently there was a World Without Oil game in 2007. Do we need a World Without Credit game next?

Credit Market Meltdown – Will It Finally Bring About The DotCommers New Economy?

Are we seeing the credit markets and trust itself melting down, putting the entire global economy at risk?

 If banks won’t make loans, if they won’t issue letters of credit, how will the economy function? How will commerce take place without these fundamental components and tools of the trade that have enabled trade between parties who are generally unfamiliar with each other?

If the economy breaks down due to lack of trust, and the credit instruments in wide use cease to exist, does that mean we will have to rebuild the world economy and in doing so indeed finally have the “New Economy” as proclaimed, but never materialized, during the Dot Com era?

Is it possible that electronic transactions and the Internet play vital roles in actually solving the problem? Do we really need letters of credit to facilitate cross border transactions and shipment of goods or could the same type of third party escrow service Ebay buyers use come to the rescue?