Subprime mortgage troubles have blown up hedge funds in the US, UK, Australia, France, and Germany, due to an ongoing run on hedge funds by holders of rapidly depreciating mortgage-backed securities. The Fed is making the incredibly unusual move of stabilizing the market by purchasing them. The dollar is sinking slowly, and China has threatened to make it sink much faster if the US keeps playing chicken with Chinese imports. Flippers are in trouble.
Not fun for anyone, but it could be a healthy turn of events. If we’re lucky, this signals the beginning of the end for America’s second gilded age.
Secretly Ironic 