Monday, July 30, 2007

More Bad News On Subprime

Today, news about subprime is getting grimmer.

For example I saw these headlines, "Signs of US subprime crisis spreading" reported by Financial Times, "HSBC hit by sharp rise in bad debts in US" from Guardian, "Corporate Bond Risk Surges by Record as Subprime Losses Spread" reported by Bloomberg.

As far as I know and have experienced problem related to debt don't go away quickly, it will stay there for a few years and you have to really, really hope it can be contained and not spread out, which I don't see happenning, it has spread to UK, Australia, Japan and recently I saw a story about a Germany's based bank taking the hit.

Why? Because the subprime loan gets packaged and sold of to, who knows whom from anywhere in the world.


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