Amidst all the happy words and noises that followed yesterday's story that "Fed Offers $200 Billion Lifeline for Spurned Debt," most news accounts either failed to include or buried the truly relevant details. Looked at closely, the Fed's "Offer" of a "Lifeline" comes attached with the kind of terms you'd expect from a benevolent loan shark.
Hardly anyone imagined the day would come when AAA bonds would be downgraded to junk status on a daily basis. But that's exactly what has been happening to bonds backed by subprime mortgages in these last few months.
Announcing EWI's New eBook ...
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