I didn't like the subprime market in June and july, see early posts and I like it even less now. See original posting here in July. Expect the new heads of Citibank and Merrill Lynch to report huge losses in Q4. It is the one chance they have to "blame it on the last guy" and move on. If they are smart they will get all of the banks to do it.
The banking sector is in serious trouble. Globally the USD is as popular as a fart in church.
A more worrying point, Citibank with $2.3 trillion in positions is below its 8% in risk capital. This basically means one of the world's largest banks is low on capital.
Here is what Forbes has to say.
Oh and here is that picture worth 1,000 words.
This is AAA rated paper that is trading for $0.70 on the dollar. In theory this could be in money market fund. Thanks Moody's and S&P. Here is the source.