Dec

20

Wall Street Titanic

December 20, 2007 | Leave a Comment

The Titanic sank because the Captain did not see the iceberg and he was told the
ship was unsinkable. He and many others believed the builders and went down with the ship.

The Titanic disaster reminds me of the current situation in the subprime mortgage
debacle now going on.

When the first of the bad loans surfaced the “experts” and talking heads on TV were
all of the opinion that this was a small amount of money when considered in the overall
size of the market and would have no effect on the rest of the market. They did not remember
the “iceberg effect”. Only 10% of an iceberg appears above the water. What may appear
small is enough to tear a hole in a very large ship and sink it.

This is a preview of Wall Street Titanic. Read the full post (565 words, estimated 2:16 mins reading time)

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