Sunday, August 19, 2007

Over the last two weeks, this slowly building wave became a tsunami in the global financial markets.

How Missed Signs Contributed to a Mortgage Meltdown

So in October, as mortgage-backed bonds were still flying high, he bet $10 million that these bonds would plunge in value, using complex derivatives available to any institutional investor. As his gamble began to pay off in the first months of 2007, Mr. Melcher, a money manager based in New York, plowed the profits into ever bigger wagers that the mortgage crisis would worsen further, eventually risking some $60 million of the fund’s money

Posted by chris :-)) @ 11:38 PM (438 views)
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