Monday, August 27, 2007

If you want to be scared about subprime...

Read this:

http://bigpicture.typepad.com/comments/2007/08/cdo-insiders-we.html

The story I heard from a bond trader is that the Chinese were willing to buy paper at very low spreads just to keep the RMB from appreciating. I have no idea whether this is really true, but it makes for a good story.

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