Getting the rat through the snake


By Michelle Celarier

Aren't you glad August is over? Before you think the markets have calmed down, however, it's worth remembering that the worst subprime loans - in a market greater than $500 billion - are those whose interest rates are resetting later this year and next. The biggest defaults are yet to come. Then there's the close to $300 billion in hung bridge loans clogging up bank balance sheets, stalling the return of the private equity and merger-arb bonanza.

Will Fed rate cuts help? Last month a repeat of Long Term Capital Management seemed a distinct possibility. In