Ho John Lee’s Weblog

Another day, another subprime-related fiasco. Today GE Asset Management announced that one of its not-quite-money-market short bond funds, the Enhanced Cash Trust, took a loss from subprime holdings, and is offering customer redemptions at 96 cents on the dollar. Normally these funds are considered to be a higher-yielding version of a money market fund. This would make you pretty unhappy if you were looking for 5%-ish stable returns while waiting for the stock market to settle down.

Along these lines, here are British comedians John Fortune & John Bird chatting about the state of the banking system, Northern Rock, and subprime in another interview of “George Parr, investment banker” from last month.

See also: Subprime crisis explained, by British comedians

This entry was posted on Wednesday, November 14th, 2007 at 7:32 pm and is filed under Finance/Investing, Front Page. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.