Lurking Beneath $13 Trillion of Subzero Sovereigns – Massive Derivatives Turmoil

by Doug Noland
David Stockman’s Contra Corner

Seven UK mutual funds thus far have halted withdrawals and/or taken significant write-downs on fund asset values. Combined fund assets are about 20 billion pounds. Back in June 2007, it was the implosion of funds managed by Bear Stearns with about $20 billion of assets that set in motion the collapse of the mortgage finance Bubble. To be sure, bursting Bubble dislocations would have been less destructive had “Terminal Phase” excess not run roughshod throughout 2007 and well into 2008.

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