Which Is Worse: Threats from Osama or Wall Street?
Osama is back, after all these years, after all the propaganda, and promises to “smoke him out,” after BILLIONS spent on a war on terror and war of error, after bombing that moved every rock in Afghanistan at least twice, after security guidelines and years of fear, the most powerful country is once again bracing for new attacks from the Qaeda crazies. This story smells and reeks of lack of evidence, but its going to divert attention away from the war we are losing in Iraq (make that the war we lost) and whats about to come down on Wall Street according to Rupert Murdoch’s New York Post. Be very afraid”
Wall Street is bracing for a nearly $2 trillion washout collapse of hollow and shaky mortgage bonds, triggering fears of a recession worse than the dot-com bubble bursting.
A stunning first step in that grim outlook came yesterday when two credit rating agencies - Standard & Poor’s and Moody’s Investors Service - abruptly pulled the plug for the first time on a protective layer of respectable ratings that have cloaked the underlying, deep weaknesses of mortgage securities awash in the economy. S&P slammed only a chunk of the half-trillion in mortgage bonds it monitors - about 2.1 percent or $12 billion - but said housing prices could crash by 8 percent this year to make matters worse. Moody’s downgraded $5.2 billion of mortgage securities.It sent shock waves through the market, triggering worry among investors that a domino effect could spread in the coming weeks throughout the nearly $2 trillion in mortgage securities.
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