Where does this end .....

We have all heard that the Banks are having problems with their exposure to the subprime mortgages and their financial troubles have caused a massive credit crunch in the financial markets all around the world. The absence of liquidity has caused a blood bath in the financial markets all around the world. All the big investment banks have declared multi billion dollar write off due to this. This has also led to the collapse of many of the hedge funds that were giving spectacular results till now. Read here about the anatomy of a hedge fund collapse. Where does all this stop, stocks around the world have lost more than thirty percent from their peaks or more, US might already be in a recession; According to me the next important thing is the results of the big investment banks. If they have accounted for all the sub prime write offs then we should be good, if there is more to be lost to that, the uncertainty will cause more harm. The US consumer will have the checks from the economics stimulus package (Details Here ) sometime in May, that should help the flagging economy. All in all another three four months before we see some kind of consistent recovery across the stock markets.