Friday, March 16, 2007

Why the subprime bust will spread

Years ago when the US debt bubble spread to the housing sector, warnings from many quarters - including Henry C K Liu - about the systemic danger of subprime mortgages were dismissed by Wall Street cheerleaders as "sky is falling" hysteria. Now, belatedly, financial wizards are slowly realizing that their earlier departure from reason has fueled a phenomenon that is poised to cause severe damage to the global finance system.


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