Month August 2007

The Fed was wrong, says Bloomberg, and so was everyone else who said the subprime crisis was contained. The subprime mortgage industry’s problems were contained, they all said. It turns out that the turmoil was contagious. Washington Mutual, a major…

Hello there, trillion-dollar derivative debt markets. If in a couple of years time I’m writing a book called The Crash of 2007, the first chapter is going to be about how these marvelous new debt instruments ended up making a…