On Friday, the Fed finally did an about face and openly admitted what the entire world had already figured and priced into the global securities markets by suggesting that the “subprime” crisis was not simply relegated to one basket of securities, but rather – it is part of a larger problem growing out of the aggressive lending policies surrounding the boom in the real estate markets over the last half-decade.

As investors scramble to assess just how far this contagion will “spread”, typically-savvy fixed-income brainiacs are dumping securities across the board and driving up prices (and down yields) on the only surely safe thing left in the market – US T-Bills: Tough love on Wall Street
As lenders hunt for bad loans, Pimco founder and Fortune columnist Bill Gross says the Street is learning hard lessons about disclosure.