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8/7/07

Newsweek/MSNBC: World/US Economy - Subprime Nonsense from the US Government - Dan Gross

For the complete report from Newsweek/MSNBC.com click on this link

World/US Economy - Subprime Nonsense from the US Government - Dan Gross

"Everywhere you look in the US vast financial FIRE (finance, insurance, and real estate) sector, in fact, it seems the subprime crisis is "contained." The virus infecting subprime housing debt has now clearly spread to subprime corporate debt. Citigroup and other large investment banks are suddenly finding it difficult to sell the debt they've committed to raise for private equity firms so they can buy other companies. Of course, this particular spot of bother is contained merely to the stock of the Blackstone Group, which borrows heavily to finance its deals. And to shareholders of companies waiting for buyouts to be completed, like Sallie Mae and TXU.

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