Monday, June 25, 2007
US subprime woes start to spread
Thanks to some bad bets on the US housing sector, two of US investment bank Bear Stearn's hedge funds look in danger of collapse... The funds both invested in securities related to the US subprime mortgage market - the elephant in the global economy’s living room that all the participants are desperately trying to ignore in the hope that it will just go away. So what exactly is the problem - and could this be the start of something bigger?