Thursday, June 14, 2007

The Subprime Meltdown Continues

It's not over by a long shot. BBB- ABX index continues to sag as adjustable reset by the millions.
But beyond the insurance that protects against default in the ever shaky subprime debt, we saw the subprime woes in a much more tangible way: the results of both Bear Stearns (BSC) and Goldman Sachs (GS): Goldman and Bear Stearns feel impact. In the words of Goldman's CFO David Viniar, "We have not seen the bottom in the sub-prime market."

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