Some attempts at propaganda are thin on their face. Little teeny banking interests like GS, MER, LEH, and BSC are taking all this in stride. Why, just today, the Fed threw $24 billion into the market and the ECB threw “unlimited” funds into their markets. So, there’s nothing to worry about. Especially when talking about the single topic of “sub-prime”. But the topic is a tad larger than “sub-prime”, it includes “alt-A” and it also isn’t strictly a matter of mort defaults: It is the systematic realization that virtually ALL credit has been based upon putting lipstick on a pig for a few years now. And, a very significant amount of the market’s recent advances have been based on these relentless corporate buyouts....buyouts for which the funding is likley to become quite a bit tighter.
And as I keep saying, the bulge in the curve as to mortgage resets will be occurring Sept-October this year. So, the S hasn’t completely hit the F yet.
http://www.irvinehousingblog.com/wp-content/uploads/2007/03/reset.PNG
Extremely vulnerable are high-yield money market accounts, which are likely invested in mortgage backed securities. You can argue with me about anything else, but these funds are nothing if not highly vulnerable.
Yup, a long time. When Ahab promised to pay 6 bulls next year to Ma-Nu and poured copper into the bull mold to show good faith, the whole house of cards began to crumble.
