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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (20380)	7/24/2007 2:38:32 AM
From: energyplay	Read Replies (1) \| Respond to of 217593

At present I don't think sub prime is a big enough problem to crack the system, absent some other factor, like oil over $100 for more than 3 months, massive crop failure, epidemic, or another stupid war. Most people knew those CDO tranches were not really AAA, even when rated so by the "rating agencies". So most funds have only a few percent of the toxic stuff, and if they have the general stock market weighted in their portfolio, or some commodities, they will have more than enough to make up for the CDO loss and still be up for the year. Sweet are the uses of diversity... My expectation is for soggy stagflation, with pockets of real net growth in a number of areas.