#Subprime

Almost every day, a new twist seems to appear in the subprime crisis drama. This week, the investment arm of the government of Abu Dhabi announced an infusion of $7.5 billion to acquire a 4.9% stake in Citigroup, which has been slammed by enormous losses…

At the end of October, the Federal Reserve gave the financial markets just what they had been asking for: a 0.25% cut in the federal funds rate. But in early November, stocks plunged and the dollar hit a new low.…

Troubles in the subprime mortgage industry seem to be spreading. The stock market is in turmoil. Alan Greenspan and others say the economy is being hurt. Consumer groups predict that up to two million Americans will lose their homes.…

For months, the steady drip of news about troubles in the subprime mortgage market didn't seem too bad, and many economists started to feel reassured about the health of the general housing market.…