sub prime is no game, page-28

So we can multiple this by 5 as well?

"Mr Howard yesterday released a report prepared by the Department of Foreign Affairs and Trade that predicted the middle class would grow to up to two billion people within a quarter of a century."

I think Neil has it spot on, its not actually subprime itself that the biggest threat, it’s the big boys burnt with CDO holding back lending thats the problem. 2 separate problems but linked admittedly. Do people actually think they didn’t take some sort action before letting the market in on their problems? They could see it a mile away and I suspect have done pretty nicely out of it to date. Rate cuts will be the icying on the cake for them. Seems all too convenient to have a crisis of confidence in lending at the exact time it benefits them most.

Rates cutes will easy their pain greatly, this why Bernanke is yet to bail them out. This is why he is holding off until he feels the economy needs it, not because the big boys are sooking playing their blackmail game. I suspect Bernanke will have to cut, the risks are too great if he doesn’t, he has some figures to back up a moderate slow down now, backed with tame inflation figures, so the stage is set for him to cut.

And then doom and gloomers will have us believe the US dollars will be smashed, im not so sure. The markets are fully expecting rate cuts, so this will already be factored into the US dollar to at some degree at least. I wouldn’t be surprised if the US$ actually rallied on the news.