Quick Takes: BW labels mortgage CDOs a pyramid scheme

Business Week provides a detailed look at the Bear Stearns’ Hedge Funds which collapsed and outlines their similarities to a pyramid scheme. A good read…

The Bear Flu: How It Spread
A novel financing scheme used by Bear Stearns' hedge funds became a template for subprime disaster.
http://www.businessweek.com/magazine/content/07_53/b4065000402886.htm

“The global markets are dealing with the consequences: The tab from the mortgage mess could run up to $500 billion, and central bankers are struggling to stave off recession. As investigators sort through the wreckage, the records of Bear Stearns' doomed hedge funds are turning out to be some of the most revealing in an era of financial folly.”