Imagine a butcher making sausages

The American Dream unravels for poor and rich alike

Comment: If the subprime mess finds you confused, don't be surprised. I was (yes it was a long time ago!) an economics and finance major (University of Cincinnati, 1971) and I find it confusing. What's a collateralised debt obligation (CDO)? This article explains - it's like butcher making sausages!

Excerpt:

Their broker urged them to get on the property ladder before it was too late, assuring them that soaring house values would soon provide a tidy profit long before the initially low interest rate of the subprime mortgage he'd arranged for them took a significant hike upwards.

Comment: There is a lot of presumption in the above: soaring home prices, tidy profits, etc. This article is not about butchers or sausages!