Since I have been writing frequently about the Subprime debacle for most of this year, you might be getting tired of reading about it.
However, its incredible negative impact and consequences are here to stay for some time to come and will affect adversely not only the U.S. economy but many countries worldwide.
It’s interesting how the Subprime pig, as I called it, made its way around the world rattling countries when and where you least expected it. How did this crisis spread from being a bunch of Subprime loans, originated by greedy, irresponsible mortgage brokers, become such a powerful tool that brought down hedge funds and so far has caused losses in the neighborhood of $50 billion dollars—with no end in sight?
MarketWatch recently featured a story called “Toxic Export,” which explores how America’s risky Subprime mortgages fouled the world markets. It’s an interesting read and will enlighten you as to how, among other things, U.S. Subprime loans caused havoc for a British bank that never lent a penny across the Atlantic.