The Israeli offensive on Hamas in the Gaza Strip on 27th December, 2008 ended on January 17, 2009 when both Hamas and Israel announced separate ceasefires, which have turned out to be quite fragile. The 3 week offensive claimed some 1,300 Palestinian lives, 400 of which were children. Another 5,000 were injured including some 1,800 children and 800 women. 13 Israelis were also killed. How did this crisis come about and what were some of the issues raised?
This update includes notes about securitization and how banks were exposed by these complex instruments leading to the subprime crisis. Also added more information on derivatives, futures and other forms of risk management that backfired and contributed to the current financial meltdown.