I have been watching the unfolding of the suprime industry from the sidelines (kind of) for too long, and at this point, I need to start venting in a forum where at least I have a reason to believe someone might listen.

One of the shocking things to me about the system is how the Fed and others who are responsible for our financial welfare can reassure people that the situation is contained, when it obviously is not.

Finally, one of the banks is starting to spell out the plain english for those who haven’t read between the lines already:

http://www.bloomberg.com/apps/news?pid=20601087&sid=aFoDV5gMIDUM&refer=home

To summarize: the non-performance of subprime loans that the market has seen in the last six months to a year is just the tip of a very large and melting ice-berg…and this is before the impact of China’s diversification is completely expressed in the yield curve.

I just hope that the equity markets are insulated when the CDO’s have to mark to market (which they eventually will…wall street only has so much balance sheet available to sweep the mess under: http://www.bloomberg.com/apps/news?pid=20601087&sid=azWqYwf2Kt.Q&refer=home)