subprime a myth , page-7

It's not a myth and it's not been over-hyped.

In fact, it's been under-hyped and played down by the authorities, the banks, the monoline insurers and the broker/dealers.

It is very, very serious and I'd advise you to take it seriously.

Sub-prime is the canary in the coal mine. Behind it, there are Alt-A's, MBS's, CBMS's, CDO's, CDS's, CDO-squared's and over-the-counter credit derivatives by the hundreds of trillions of dollars.

If you don't know what all of these instruments are, haven't researched them, and don't know the sheer scale of them, you might believe that it is all over-hyped.

Those who know - including the banks around the world who are hoarding cash and not lending to each other, as well as the central banks who are stepping in to provide life-saving liquidity to those banks - know how very, very serious it is.

Without the support of either central banks or sovereign wealth funds, Citigroup, Morgan Stanley, Merrill Lynch, Northern Rock, and more would have breached their capital adequacy ratios by now.

You discount this phenomenon at your financial peril. I strongly advise you to research it in greater detail if you don't believe it's "The Real McCoy".

It is.