Annexus Financial posted on February 05, 2008 12:01 AM

Bill Gross, founder and chief investment officer of PIMCO, had a great article in Fortune last month. He described the "sub-prime" financial mess this way:
"The tangled web of sub-primes has claimed more than its share of victims in the last months; homeowners by the hundreds of thousands, to be sure, but also those who created, packaged, insured, distributed, and ultimately bought what should have been labeled "junk mortgages" but which by a masterstroke of marketing genius received more respectable imprimatur.
Skim milk masquerades as cream," warned Gilbert and Sullivan over a century ago, and sure enough, today's subprimes, packaged into financial conduits with monikers like SIIV's and CDO's, pretended to be AAA - cubes of butter."
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