Forget about Global Warming, It's a Financial Frost

Yes, folks, the financial frost has hit. Reading the financial press, it is obviously something big going on. Chrysler buyout has frozen up. Alliance Boots is scoffed in the UK. Schweppes has been schwiped. Remember some of the big guys like to have a big crash every 20 years or so. True we have had some mega crashes already, like the fall of the Y2K bubble, but something much bigger seems in the air.

Unlike the idiocy in the Yahoo Finance, or the evening news, different financial events ARE actually connected. And that is not a conspiracy theory, it is just the way life is.

First, the housing market, especially in places like Florida and San Francisco, Cal. went kerplunk, as much as one-third down. Then the mortgages that were sold bundled together as MBS (Mortgage Backed Securities) went down, starting with the subprime stuff. Then the hedge funds, like those of Bear Stearns collapsed, that were heavily invested in the MBS, collapsed to nothing. Then the CDO (Collateralized Debt Obligations) began to collapse, since these are, apparently, a form of insurance for some of the other stuff. And now, da da, the same banks financing the hedge funds are running out of money and credit for the bit LBO deals (Leveraged Buyout. What a small world.