Mahesh Reddy

Subprime Fallout Serious, But Unlikely to Derail Economy

I have this belief that with the evolution in financial sophistication...the banks are much prepared not to avoid systemic crisis...al a ....new instruments like mbs,abs,cms,rmbs( collateral debt obligations)..thus diversifying the risk and spreading it to many parties to underline capitalism to the truest...Yep! everyone will lose something but just a fraction but at the same time avoid economic meltdown ...which will enable the economy to chug along in other areas why the mortage industry cleans itself from the mess....

But the million dollar question is ...IS their really something called financial sophistication..where risk can be managed....i guess, we will get to see it in comming months and the ensuing year as it plays out in front of our eyes...

--Mahesh Reddy