Well, a few days ago, it was the short term money market type funds for local Florida governments and school boards, and today, it’s the state of Florida’s pension fund.

More Structured Investment Vehicles (SIV), more downgrades, more losses.

I think that what has been going on for the past 18-24 months is that the investment banks have realized that the stuff is illiquid (economist speak for worthless), so they fobbed it off on a lot of people with more money than brains, state pension and similar funds.

Given that the level of leverage and complexity is greater than in 1929, the consequences of the collapse might be a lot worse than in 1929. This is not just subprime….It’s almost everything out there.