Distressed Volatility

Wall Street, R.I.P. Now What?

If the consumer can't remain resilient to this mess... then we will have a major problem.

Banks on the Verge of a Nervous Breakdown

The question is, does the tax payer bail out more banks that are invested in securitized consumer loans, revolving credit cards.. They were packaged inside high yield fixed income funds (morgan keegan for example) all over the place. While real estate is the shelter of the economy, consumer credits are the blood of the economy, and since these credits are spread out all over the place as well as held on banks balance sheets does that mean, if the economy enters recession, those write downs will have to bailed out too? Of course if this economy doesn't all of the sudden turn and provide everyone jobs based on this socialist intervention, there might not be a problem. The thing is, people who didn't even buy a house still might be way overlevered on their credit cards or other personal loans.. www.distressedvolatili...