Changing the Rules
I've seen a couple posts on this already, the SEC changing rules.
The US goes Japanese...
I particularly like Mish's post on it.
Mish also did another post on the Asset Backed Commerical Paper. I sent him some of the links on that one. The thing that really got to me on this is the Credit Union I deal with has decided to cover losses for credit union members who bought this stuff through Vancity's investment partner. I truly do not understand what this ABCP is, and this is what I found. I had thought it was US garbage but somehow because it was being sold though Canadian investment banks I then though it was Canadian.
Reading through the comments on Mish's post something that I had not thought about in terms of where some of this stuff is being held would be Canadian junior explorers. When this stuff first came out I remember numerous companies putting out press releases that they did not have any ABCP and I completely missed the significance of that. Now I am wondering how the American SEC rules will play out here. I got my husband to pick up a gold junior explorer over spring break and now I need to go and find out what they have their money in.
Here's an oil company that has been hit by it... One of my reasons I've given for not being in the market is because you just don't know where the losses are going to show up.
Time to look for time bombs...