Posted by Jack
Jim Jubak and Tim Middleton over at MSN, must be brilliant…they think at lot like me! lol Check this out:
“Sweeping debt woes… Today’s financial meltdown defies comprehension because so much of it is packaged into exotic derivatives, such as collateralized debt obligations and structured investment vehicles. These were bundles
of risky loans such as subprime mortgages put together and sold by institutions eager to spread risk and keep lending.
Now, they embrace possibly $2 trillion or $3 trillion dollars of indebtedness spread far beyond banks and savings and loans to insurance companies, pension funds and the like around the world.
The marketplace for these exotic bundles has seized up. Meanwhile, other asset-backed securities are plunging because defaults are rising amid the sickened economy. More and more homeowners and consumers simply can’t repay their loans.”