Thursday, July 26, 2007

Meltdown of U.S. subprime market

--the low interest rate in 2003 alone would have given the housing market a nice pop, but a series of financial innovations opened the floodgate --the combination of low interest rates, securtization, and CDS created a powerful feedback loop --a new breed of players (nonbankers) take the field --carnage is far from over

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