thewestexit.com

Here’s an interesting article I found today:

Deepening Debt Crisis Hits Close to Home

Basically it’s discussing the impending problems with certain types of subprime loans, how they’ve been sold, and those who are unknowingly invested in them.

Here’s a couple of points I’d like to bring to your attention, in case you didn’t know: Many of the high risk subprime loans that were approved during the real estate bubble were not sold off singularly to third parties like Fannie Mae or Freddie Mac. Rather, they were packaged together with other, more stable loans, and sold off as a set to third party investors. This practice was banned as of the beginning of March 2007 but of course nearly all of these types of loan sets are still floating around out there. Furthermore, many of these investors in these loans are state pension funds and many mutual funds put together by financial advising institutions. A lot of these loans are now starting to fall apart, and soon the effect will be felt by investors. And if you have a state pension fund or bought into a mutual fund, that could mean YOU. It just goes to show that relying on others to take care of your financial future can put you directly in the line of this type of crisis. Now more than ever it is so important to look after yourself and your finances, because how can you trust anybody else to look after your well being in this day and age?