The news gets worst. The fever that Uncle Sam has contracted about 13 months ago has now turned into pneumonia, and now the world has got tuberculosis. The subprime mortgage crises has now evolved into a full scale financial crises with major financial institutions falling, the Leighman brothers, Meryll Lynch and AIG being its latest victims. (Fortunately the Feds intervened in AIG’s case and Merill Lynch had the benefit of having a dashing knight to its rescue. The Feds decided to save insurance giant AIG because it is "too big to fail." Of course it is, imagine what would happen to their carinsurancelist.com) Experts are now saying that the United States has full entered into a recession while Wall Street is asking who is next. Amidst the turmoil one cannot anymore avoid trying to understand the complexities of the subprime mortgage crises which undoubtedly is the main source of all of these. As I wrote before in my post entitled “Idiot’s guide to the subprime mortgage crises”, … [Read more...]