It comes as no surprise to ourclients that the US is entirely too dependent upon China in order to maintain our standard of living. China has been buying our Treasuries and Fanny & Freddie bonds for years. At the same time it has been building a war chest (maybe poor choice of words) of foreign [...]

The global economic contraction began with sub-prime residential mortgages souring. There will be a series of “next shoes to drop”. Staying with residential mortgages, we are seeing defaults rise on the higher quality loans: Alt-A mortgages and prime mortgages. The market for Alt-A mortgages + prime mortgages is several times larger than sub-prime. Hopefully, the [...]