subprime a myth , page-8

100% spot on, the subprime is debarcle is not the full story just what is easiest to report,

What hasn't been discussed much is the 100's of $millions of over the counter derivatives that have been devised and then attached to the paper which was sold into the world market.

If these instruments were market down to their true value (zero in many cases as there is no market for them), rather than the hypothetical values generated from the rating agency and other payers models, you would see the real state of play.

They are trying to rig the market for these instruments as the true position is too shocking to contemplate.

The Fed has lent 1 trillion (printed new money) for 14 day periods into the banking system but don't expect those loans to be repaid anytime soon.

Whatever happens, the liquidity being pumped into the system should see some shocking inflation rates emerge in the US at least.

The $US is history and will drop much much further than it is now and gold will climb to a level not seen before.