Wednesday, February 20, 2008

Bad idea

In hindsight, obviously, you would think that borrowing in the commercial paper market to invest in “Alt-A” loans (home loans barely a notch safer than subprime) was a pretty bad idea.

KKR Financial (KFN) news (delaying repayment of billions of dollars) hitting the markets just before midday, along with rumours of massive writedowns at another big bank.)

And basically the whole C.P. market has seized up. We're SO not out of the woods yet! Odds on there will be more Credit Suisse-type announcements as we approach the release of audited bank results at the end of the month.
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