Monday, November 19, 2007

Sub-Prime In Its Context

Gillian Tett :

…the main point that emerges from the map is a simple one: namely that although sectors such as subprime or leveraged loans have grabbed headlines this summer - and inspired panic due to the potential of these assets to generate losses - the assets represent a tiny part of the financial system as a whole. On sheer size, subprime securities are dwarfed by other asset classes, such as equities.

See picture :

Find the subprime market…click to enlarge

Map from BofE Financial Stability Report [p 22]

No comments:

Lunch is for wimps

Lunch is for wimps
It's not a question of enough, pal. It's a zero sum game, somebody wins, somebody loses. Money itself isn't lost or made, it's simply transferred from one perception to another.