Month July 2007

Sub-prime crisis may trigger global meltdown

Moody’s chief economist said if there are more hedge fund blowups like at Bear Stearns, the effects on global financial markets will be severe. He said economic modelling showed that sub-prime mortgage delinquencies would peak in mid-2008 and remain close…

Thugs attack protesters in Russia

Neo-Nazis in Russia recently attacked a sleeping camp of anti-nuclear protesters, mostly anarchist greens, beating them so severely that one died and others had broken legs. The police, to put in mildly, are less than helpful to those who were…

Tranche warfare

Class warfare exists in the world of subprime mortgages and bonds, yes it does. Let me explain. Thousands of mortgages get packaged into a bond. The various risk levels of the mortgages are separated into what are called tranches. The…