CDO – The Buck Stops Here

New York – As we approach the end of the year and the markets turn to assessing the prospects for the coming year, one of the key imponderables is the current instability in the sub-prime mortgage markets that reared their ugly head in August.

While there is still a lot of debate about how significantly this event will affect future earnings and stock prices, we can rest assured that we finally understand the genesis of the problems that created this situation.

We attach a cogent explanation of the workings of the sub-prime mortgage markets and its flow through to the CDO markets. Enough said:

http://garynorth.com/public/2637.cfm

We would like to acknowledge Stew Pillette of Pillette Investment Management for sending this link to us.