Fourth of July Hangover?

Posted 2007-07-05 08:47
by Karl Denninger

Looks like it may be starting that way.

Lots of people are blaming the 10 for the deterioration in the futures this morning.

I suspect its more likely the cockroach theory being proven once again correct:

"Two hedge funds that invest in subprime mortgages have run into trouble, with one shutting down and a second stopping investors from withdrawing their cash."

Gee, there's only one problem with Bear Stearns, right? :->

I love the claim that the LBOs are still going strong. Nobody reads Bloomberg eh?

"``There are some very scary analogies between high yield and the mortgage market,'' said Kevin Lorenz, a managing director who oversees $2.5 billion of high-yield assets at TIAA- CREF in New York. ``You cannot do fundamental analysis and believe that those are creditworthy companies.'' "

Heh heh..... the disinformation campaign continues...

We shall see what Mr. Market thinks of all of this today...... more later!

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